• NinjaKlaus (edited 2 years ago)

    Let's say the average franchise has 20-30 workers, We'll say 25, that is 8.3 workers per shift. Of those 25 I'm guessing 5-10 are part-time. So I'm going to go with 15 full and 10 part-time workers for this. Let's say the full time staff are making $10 or $400 a week. The part timers are making minimum wage, let's call it $7.50 or $150 a week. OK, so now let's go with the "living wage" of $15 an hour, that means the full time group is now making $600 a week and the part timers are making $300. We'll guess and say they need 5 full and 5 part time employees, you only get the iPhone if you stay for 6 months, which is about 26 weeks. With the living wage rate of 15 that equals out to $45,500 extra those employees would get... then since the ad doesn't say what phone, we'll go with the cheapest new iPhone the SE at 400, 400x10 is $4,000. So it's a no brainer from the business standpoint for the franchise to offer the iPhone over a higher wage. I will also point out Illinois already pays $10 as minimum wage for non-tipped people, meaning my math is off for where this is actually happening but doesn't change the fact that a business owner would rather buy iPhone's than pay more.

    I'm not saying that higher wages aren't a necessity, I'm just pointing out that franchise operators aren't always in a position to offer more. After they buy the materials and ingredients from McDonald's or McD's mandatory partner. They then have to pay McDonald's part of their yearly intake, on top of that my understanding is that McDonald's owns most of the real estate and the Franchise owner has to pay that lease too. Then you have, electricity, water, payroll, taxes, trash, etc...

    Here is what they pay to McD's, it's interesting:

    Ongoing Fees

    During the term of the franchise, you pay McDonald’s the following fees:

    Service fee: a monthly fee based upon the restaurant’s sales performance (currently a service fee of 4.0% of monthly sales).

    Rent: a monthly base rent or percentage rent that is a percentage of monthly sales.

    Mashed says that the average store brings in 2.7mm a year, but after fees, payroll, the costs of buying the food, etc it works out to the average store profit of just $150k. The initial cost to open one is $1,000,000-$2,000,000. So it's going to take 10 years just to pay off the initial investment to open a McDonald's at the 150k profit margin. So the $15 living wage has the ability to absolutely destroy that profit, especially if McDonald's Living Wage raises prices and McDonald's iPhone down the street doesn't because most people will just go to the cheaper one.

    It's a lot more complicated than just saying raise wages.