For whatever reason, #FightFor15 has chosen McDonald’s as their poster child for all that is wrong about evil corporations and the fast food industry stepping on the little guy. You know who has had enough of it? Ed Rensi, the Former CEO of McDonald’s.
He wrote an OpEd completely schooling the lack of economical literacy …
Most restaurant businesses—including McDonald’s and Famous Dave’s of America—are run by individual franchisees who by and large operate independently of corporate headquarters. These franchises are faced with slim profit margins, with business expenses like staff and rent offsetting a large chunk of revenues from sales. As such, franchisees are ill-prepared to pay their employees more for the same work if they hope to keep hiring new people and expand their business. A $15 hourly wage would effectively make employees more expensive without increasing revenue, eating away at the profits job creators need to stay afloat.
To offset higher labor costs, these job creators would be faced with a few undesirable options: Raise prices, cut back on staff, or switch to automation (and perhaps all of the above). The last option is increasingly popular. For example, McDonald’s now has self-service kiosks in about 600 U.S. locations and that number is expected to increase to roughly 1,000 by the end of 2016.
The real tragedy here is that more machines mean fewer employees acquiring the tools they need to succeed. Entry-level work at restaurant businesses is meant to teach once-inexperienced employees the skills they need to move up the career ladder.
I highly recommend reading the whole thing, because the left gets off too easily, claiming any business is a big evil corporation. The truth is most business owners do the best they can for their employees and their customers in an already over-regulated business climate. But that doesn’t sound as catchy on a poster (related Neil Cavuto Schools Young Liberal on Basic Economics).
To the errant leftist reading this claiming you can’t advance on a minimum wage? Ed Rensi addressed that topic. I knew you weren’t to be trusted when recommending you read the entire OpEd…
I used to be one of them. I joined McDonald’s in 1966 as a part-time manager trainee, manning the grill, packaging menu items for hungry customers, and earning 85 cents an hour. After learning on the job, I was promoted to restaurant manager within a year and later became a regional manager and vice president. Eventually, I was named president of McDonald’s USA in 1984—after nearly two decades working for the company.
Ed Rensi is practicing politeness here. But let me translate what he’s really saying to you protesters: less whiny, more worky.
Sorry your parents, or maybe just parent, never taught you about working hard to advance. Perhaps at home you got your way by throwing yourself on the floor in an epic tantrum. But we’re adults now. Leave the toddler behavior to the toddlers. Check your entitlement privilege, close your mouth, get to work. If you want nice things, if you want a good life, put your efforts in advancing it for yourself, not in bitching about things your owed. Read Dear Millennials: Your Love of Socialism Could Be America’s Downfall…
Unless, of course, you want to welcome our robot overlords. Turns out minimum wage jobs? Robots can do them too. At least in the fast-food world. They sure do whine a lot less.