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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (736376)	9/1/2013 1:40:30 AM
From: i-node	3 Recommendations Recommended By jlallen Jorj X Mckie Machaon Read Replies (2) \| Respond to of 1577032

>> If McDonald's had to pay its employees $15/hour, the cost of a dollar menu item would go up 17 cents. No, it wouldn't. Because McDonalds would simply fire enough workers to cover it, which is what they're doing in Europe now, replacing them with technology. These McDonalds employees are going to drive themselves onto the unemployment roles. Because they're not essential. They're there only because they're cheaper than replacement technology. McDs has made it clear from their actions in Europe where they're headed if costs escalate. There are two major components of cost in a restaurant operation -- food and labor. The rest of it, overhead, is relatively fixed. If you drive up labor cost, it kills margins rather quickly. You can't raise prices 17% (actually more like 20-22%, but whatever) without killing revenue. They won't do it. They'll simply replace those people (If I were running that company, I would already be doing just that; most of McDs customers can easily handle a touch screen for ordering and swiping a credit card to pay). It is too bad, because those entry level jobs have been critical for many people over the years, in giving them an opportunity. They won't have that anymore.