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Can't help think that fast food prices will go up.
LIVERMORE, Calif. (AP) — Most fast food workers in California will be paid at least $20 an hour beginning Monday when a new law is scheduled to kick in giving more financial security to an historically low-paying profession while threatening to raise prices in a state already known for its high cost of living.
Democrats in the state Legislature passed the law last year in part as an acknowledgement that many of the more than 500,000 people who work in fast food restaurants are not teenagers earning some spending money, but adults working to support their families.
AP News
northern california coast
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They may go up, but then again companies will use just about any excuse to raise prices whenever possible. I am reminded that the fast food operators were making all kind of statements here about half a dozen years ago when MA raised its minimum wage. Actual effect was an increase of 10-15 cents on burger meal prices at the local Wendy's and McDonald's. What caused a bigger increase at the local Wendy's was an ownership change when Wendy's sold the store to a franchisee.
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Fast food prices are bound to go up. But there is a bit of a conundrum here. People with lower incomes spend a higher proportion of their "not home made" meals money on fast food places than people with higher incomes so these fast food worker raises will affect them more. That doesn't seem like a good thing at all - low income people having to pay more for something common like eating low cost fast food. But... the fast food workers are also low income workers and giving them an at least minimally living wage seems like a good thing. I have not seen a rundown of the cost-benefit balance but my hunch is that even with the extra hardship for low income fast food customers, it is worth it overall.
As for people who will have to forgo a new game console (or something similar) for another couple of months because of the price increases at fast food places - I get that it just feels like another instance where inflation is eating at your pocket but from my value system the sacrifice is not significant enough for me be opposed to the raises.
Of course, if others are coming from a different enough set of values then they wouldn't agree with me.
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Saw this on the news and they quoted one guy saying that the businesses costs would have to raise their prices a few percent - like, maybe 5 percent?
I was surprised it was that little. But I've never run a McDonalds, so I don't know what fraction of their costs is attributable to labor. Maybe not as much as I thought.
Makes a big difference to the workers.
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I saw a news clip with a comment from the guy that runs Cinnabon, said they might close due to the added costs. Boo hoo, you won't be able to buy two more mansions this year.
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They may go up, but then again companies will use just about any excuse to raise prices whenever possible.
Then again, this is not just 'any excuse'.
I don't know what a MacDonald's employee made before, but I bet it's more than a $2-$3 jump.
Some positions pay more than others.
I may test a price hike over the next couple of days.
$1 doesn't seem like accurate math.
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RAMd®d wrote:
They may go up, but then again companies will use just about any excuse to raise prices whenever possible.
Then again, this is not just 'any excuse'.
I don't know what a MacDonald's employee made before, but I bet it's more than a $2-$3 jump.
Some positions pay more than others.
I may test a price hike over the next couple of days.
$1 doesn't seem like accurate math.
They made $16 an hour before. Pizza Hut fired all of its delivery drivers last week. I remember when Safeway fired all of their delivery drivers during the last hike a few years ago. DoorDash and the other services make it easy. But, a lot of people aren't going to use the apps since they add so much more to the cost.
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hal wrote:
[quote=Filliam H. Muffman]
I saw a news clip with a comment from the guy that runs Cinnabon, said they might close due to the added costs. Boo hoo, you won't be able to buy two more mansions this year.
I wouldn't want to write off Cinnabon workers cuz that guy is a jerk.
