I am both a current chef who graduated a culinary school (with finance classes), and a former McDona
I am both a current chef who graduated a culinary school (with finance classes), and a former McDonald’s Manager giving me both practical and academic experience the financial management of professional kitchens in general, and fast food in specific. Here’s a rough estimation. TLDR: Take your bill and multiply by 1.35, but keep in mind you’d probably have more money in your pocket in this scenario because the new minimum wage would be $15/hr.–Exact number vary a bit from restaurant to restaurant… but… In fast food, aprox ¼ of your final bill in fast food goes to in-restaraunt labor costs. The rest goes to Groceries, other costs, and (of course) profit… Now, changing fed minimum wage from $7.25 to $15.00 won’t QUITE double that labor cost (even though 15 is a little over double 7.25) because the total labor cost includes more than minimum wages… things like health/dental/retirement (which SOME fast food workers do have, I promise you), bonuses, employees already making over min wage… but lets say labor cost does actually double, and %100 of that cost is passed onto you, the consumer…We’re at about %25 price hike.We, however, aren’t done. Many of the people in the supply chain.. working on the farms… in the factories… driving the trucks that supply fast food will also get raises and increase costs… resulting in a further price raise of about %10.so… a real rough estimate is a total increase of %35.pick the price of your bill, and multiply by 1.35 on your phone.If a burger is $2, you’d add about $0.70 for a new total of $2.70I paid about $4 for my kids happy meal yesterday, which becomes about $5.40.a $8 value meal becomes $10.80$20-ish to feed the family fast food becomes about $27I don’t wish to minimize the cost of $7 to anyone less fortunate than me… there are certainly moments in my life when $7 felt like something I couldn’t afford to spend or waste… But $27 seems more more affordable if I’m making $15/hr, than $20 does at $7.25 an hour… or even $20 if I’m making $10 an hour.And also, nearly everyone working in that restaurant can suddenly afford insurance and to eat every day.And, that’s if the restaurant passes on %100 of the cost increase to the consumer. Most fast food chains can afford to eat a lot of that cost, maybe all of it, and they would likely eat SOME of it. -- source link