Kosh's Shadow 1/19/2021 4:25:07 PM

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The pub will have to raise prices if the minimum wage goes up. (OK, increasing them 50% means 50%*0 is still 0)

But it leads into a rough estimate of increasing the minimum wage on fast food places.

The typical franchise fast food restaurant (BC - before COVID) made around $100,000/yr profit, at a 6% margin.

That means the revenues needed to be around $1.7 million, so expenses are about $1.6 million.

Labor is around 1/3 of the expenses, or about $520,000. Since most of the workers are minimum wage, lets assume that the minimum wage goes up 10%. That adds $52,000 to expenses, reducing profit to $48,000. 20% and it is now a $4,000 loss. Double the minimum as has been suggested, and you get a whopping $420,000 loss.

So for every 10% the minimum wage goes up, revenues (prices) need to go up by $52,000/$1,700,000 or 3%. Of course, that means fewer sales, so it has to go up even more. For the 100% increase they want, burgers would be more than 30% more expensive. People on limited budgets will get hurt trying to pay that.

Feel free to use this back of the menu calculation anywhere.

JCM 1/19/2021 5:24:38 PM

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Reply to Kosh's Shadow in 1:

And for many of the non-franchise restaurant margins are lower than 6%.

But the rest remains valid.

Kosh's Shadow 1/19/2021 5:49:31 PM

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In #2 JCM said: And for many of the non-franchise restaurant margins are lower than 6%. But the rest remains valid.

I know. And 6% isn't bad for franchises; Quizno's makes 0%, according to the site I found.

And eliminating the lower minimum wage for tipped workers will tip many restaurants out of business. 

Kosh's Shadow 1/19/2021 5:50:44 PM

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Reply to Kosh's Shadow in 3:

But I think that is the Democrat socialist plan - put small businesses out of business and have the government come in, so people are dependent on keeping them in power, and can be controlled. "You're a Republican? Sorry, you can't get fed here"

Kosh's Shadow 1/19/2021 6:08:47 PM

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Reply to Kosh's Shadow in 4:

So, when do we get our own social score, like China? Will we be required to have Facebook accounts and use them regularly?

Kosh's Shadow 1/19/2021 6:11:56 PM

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Kosh's Shadow 1/19/2021 6:34:57 PM

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Reply to Kosh's Shadow in 6:

Classic plastic guards well they're your special friend

He sees you every night

Well he call himself the brother but you know it's no game

You're never out of his sight

1984

Knockin' on your door

Will you let it come?

Will you let it run your life?

It's time you started thinking inside your head

That you should stand up and fight

Oh just where will you be when your freedom is dead

Won't you listen tonight?

Those classic plastic coppers, they are your special friends

They see you every night

Well they call themselves protection but they know it's no game

You're never out of their sight

JCM 1/19/2021 7:08:46 PM

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Reply to Kosh's Shadow in 5:

I think we already have a social score....

Occasional Reader 1/19/2021 7:22:52 PM

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Occasional Reader 1/19/2021 7:41:18 PM

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So, apparently, what’s really going to happen tomorrow is that the military is going to arrest Biden, and then Trump will take the oath of office for his second term. That’s what the nuttier posters at Instapundit say, anyway...

Syrah 1/19/2021 8:01:45 PM

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In #9 Occasional Reader said: In my more optimistic moments, I like to think that the left is currently overreaching, and badly.

They are acting like nothing can stop them  

Syrah 1/19/2021 8:14:01 PM

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Social credit score jamming...

I will take up writing Haikus again.

Just a way to inject noise into the surveillance system.

Kosh's Shadow 1/19/2021 8:34:51 PM

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Reply to Syrah in 12:

Speak in fake code that is just nonsense!

May I mambo dogface to the banana patch? (stolen from Steve Martin)