re: California’s $20 fast food minimum wage balloons menu prices

Right. 50 year old lady at Taco Bell suddenly becomes a go-getter after the state imposed raise. No way she's laughing at the stupidity of the lawmakers in CA.

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They knew the middle class would absorb the expense. We foot the bill for everything

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The big secret being everybody who supports minimum wage laws hates you and they love this fact. It’s why they support it.

Just hear me out, you’re about it to see every fast food chain in CA start baking bread. (Tinfoil cap off)

Fat Electricians Rant

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Pretty sure the illegals making food on street corners in L.A. are the only ones benefitting from this.

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Healthier and better tasting than fast food. For 1/4 of the price? Sign me up

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On no how will they ever survive without raising costs

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Heavily franchised.

McDonald’s doesn’t pay the wages of every person that works at a McDonald’s restaurant.

Corporate is making money off that franchise fee.

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The company’s long-term goal is to transition toward 95% of franchised restaurants (by 2023, franchised restaurants were 94.9% of the total restaurants).

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Vanguard and black rock are investors.

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Same article says In n Out barely increased prices, and others, including Cik-fil-a didn't. What is happening there?

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Well the chicken is a crazy place that does crazy avus. Yet they don’t pay a livable wage…


And in n out already pays more. They will have to pay even more now to keep people from leaving. They will be raising prices again. Prob within the month.

Real easy to see which posters have actual real world experience and understanding and which posters have read about this in a political blog full of half truths and bad logic but think they know know something.

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Leftists always have everything upside-down and backwards. They view this as a "what the employee wants/needs" issue and not a "what value the employee's labor brings to the company" issue.
They don't understand the value of the dollar or basic economic principles.

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So lets talk about the value they bring to their employer. A service, which is what fast food workers bring to the table for an employer, has a market price and a cost of production. The employee is no different than the employer in that their revenue MUST meet their production costs in order to remain in "business"...the business of an employee is selling their labor. The market price is that which the consumer is willing to pay...it may or may not be enough to cover production....if it costs $1 to produce a widget that the market is only willing to pay 90 cents for it would not make any economic sense to produce those widgets and sell them for less than it costs to make them. There would be fewer widgets in the market, thus the supply would be lower, and for those who HAD to have the widgets, for whatever reason, the price would increase...lower supply, steady or increased demand means high prices....basic function of supply and demand.

Fast food employers NEED labor. I trust their opinion on this....all manner of conjecture about that labor's "value" but the people with capital investment in the industry seem to be of the opinion that they need labor for their business to function. That labor which can produce the type of service the owner needs at a cost which is sustainable for the provider of the labor is, apparently, in short supply...thus prices of that labor will inevitably increase. Steady or increased demand, decreased supply, it always means an increase in costs...basic fundamental principle of supply and demand.

Why so many people, with no interest in the industry other than that of a consumer, are interested in the cost of producing the sort of labor that the fast food industry obviously feels it needs, is beyond me. The consumer's role in basic economic principles is to set the market price...what they are willing to pay...which has NOTHING to do with the cost of production. If the cost of the product outpaces the market price for the item there will be less of the item produced....market prices, what the market is willing to pay, are not dictated by production costs.

Fast food prices have been low due to low labor costs since the beginning of the industry. That labor is no longer as readily available as it once was. Production costs will increase due to this, there is nothing which can stop that unless there is an alternative to labor. The industry will no doubt raise prices to cover increased production costs. The market may remain the same, it may decrease - that is a choice consumers will make.

Consumers are also taxpayers and most taxpayers do not like the idea of their money going to people who do not earn enough money to cover their production costs. While we do not like this idea it is reality...low wage employees receive the vast majority of taxpayer funded social welfare benefits. Taxpaying consumers of fast food products are ALREADY covering the costs of fast food employee production, at the cash register at Wendy's and when the remit their taxes to the state and federal government. Taxpayers who are not consumers of fast food products are also covering a portion of those costs currently. Either way, everyone is paying...there ain't no free lunch...which is another basic economic principal that many seem to overlook.