Just saw a help wanted sign for McDonalds: starting at $18

Who says they can afford it? Maybe they're just trying to keep the business running in the meantime.

Uh, have you not been paying attention to anything? Most small businesses either have gone out of business or they're surviving on PPP "loans" up the wazoo.

same 'ol same 'ol wrote:

Wasn't there some big fuss a couple of years ago about how $15 an hour would put them all out of business?

If paying $15/hr was such bad unaffordable unrealistic business plan, why are they now printing huge banners begging people to come work for $18/hr? It's almost as if they could have afforded to pay an above poverty-level wage this entire time....

The entire American illusion that billion $ corporations paying people poverty wages is an economic necessity seems to be crumbling...

A few things.

1) Have prices been increased?

2) Are they automating things so they need fewer workers?

3) Are they cutting back hours?

4) While McDonald's is a billion dollar company, most McDonald's you go into are owned by a franchisee who is not making millions (okay maybe some are).

McDonald's even needs to pay for vacation time in Europe.

Only in the US people get the short stick.

The unmeasured statistic in all the analyses is the wake up call many went through especially at the beginning of the pandemic. The American Dream of home ownership is as ripe as ever. Except for the average american the average home is out of reach.

Coming back to the signs you and I have seen, do an assessment of the mean rent in the area. In a lot of cases, to be a head of household and raise a family, you need 3x the advertised hourly rate of fast food to put a roof over your head and survive.

I think prices have gone up a little.

But, yes, they always could have afforded to pay $15/hr.

The main difference is before they had applicants willing to accept $7.25.

Now they can’t find enough people so they have to raise the wage to meet market conditions.

You need a minimum wage to keep businesses from exploiting workers will take anything to be employed, causing a race to the bottom.

They can afford a higher minimum.

If they can’t then they don’t have a viable business.

Bro, I spent like $20 for dinner at McDonalds the other day. Food for only one person. Me. 😣 Inflation is real.

where have you been? wrote:

Uh, have you not been paying attention to anything? Most small businesses either have gone out of business or they're surviving on PPP "loans" up the wazoo.

False.

I saw a posting outside a McDonald's with a hiring notice that offered 1 meal per shift, plus 2 meals to take home at the end of your shift.

We of course had to discuss what would the best deal, health and money-wise, be. Their salads are pretty good. You might be able to re-use the chicken in another dish.

And yet my burger flipping friends say refuse to work for "wage slavery" but in reality they are lazy and got used to getting checks in the mail

same 'ol same 'ol wrote:

Wasn't there some big fuss a couple of years ago about how $15 an hour would put them all out of business?

If paying $15/hr was such bad unaffordable unrealistic business plan, why are they now printing huge banners begging people to come work for $18/hr? It's almost as if they could have afforded to pay an above poverty-level wage this entire time....

The entire American illusion that billion $ corporations paying people poverty wages is an economic necessity seems to be crumbling...

That's kinda awkward, $18 an hour at McD? I'm at $18.27/hr. right now (well, it's salaried, but $38k equivalent is $18.27/hr.).

Where is it? The McDs around us are saying $14/hr. with $300 signing bonus.

tee totaler wrote:

The unmeasured statistic in all the analyses is the wake up call many went through especially at the beginning of the pandemic. The American Dream of home ownership is as ripe as ever. Except for the average american the average home is out of reach.

Coming back to the signs you and I have seen, do an assessment of the mean rent in the area. In a lot of cases, to be a head of household and raise a family, you need 3x the advertised hourly rate of fast food to put a roof over your head and survive.

Home ownership is a fantasy for a lot of people, honestly.

I'm in the mortgage industry and it'll get people into homes they can't afford; they have a lot of tricks they used to calc income and adjust it to get people loans they might not pay on. It's kinda shady.

I'd rather rent until I find a job that is solid and I can use some of my savings to buy a modest home.

X-Runner wrote:

I think prices have gone up a little.

But, yes, they always could have afforded to pay $15/hr.

The main difference is before they had applicants willing to accept $7.25.

Now they can’t find enough people so they have to raise the wage to meet market conditions.

You need a minimum wage to keep businesses from exploiting workers will take anything to be employed, causing a race to the bottom.

They can afford a higher minimum.

If they can’t then they don’t have a viable business.

A lot of fast food places are losing workers--workers are afraid of Covid and are tired of working for low wages. A lot of people are looking to switch jobs, whether it is fast food or white-collar work, b/c they are fed up with crappy pay and no advancement.

I went to Canes in Powell today and it was closed, and then the one in Dublin was closed. Then I had to go all the way to Polaris. Staffing issues closed/reduced hours. I have empathy for the workers b/c nobody wants to work these jobs anymore.

tee totaler wrote:

The unmeasured statistic in all the analyses is the wake up call many went through especially at the beginning of the pandemic. The American Dream of home ownership is as ripe as ever. Except for the average american the average home is out of reach.

Coming back to the signs you and I have seen, do an assessment of the mean rent in the area. In a lot of cases, to be a head of household and raise a family, you need 3x the advertised hourly rate of fast food to put a roof over your head and survive.

Advertised hourly rate is $11-$14, so $33-$42/hr.? Yikes, I have a long way to go. $33/hr. is equivalent to $65k and $42/hr. is about equivalent to $85k a year.

Film Rep wrote:

Bro, I spent like $20 for dinner at McDonalds the other day. Food for only one person. Me. 😣 Inflation is real.

Your MCD experience is your isolated anecdotal experience. The professionals at U.S. Department of Labor, Bureau of Labor Statistics will tell you if there is inflation and B.L.S. will tell you how benign or severe is inflation. B.L.S. will also tell you duration of inflation.

Luv2Run wrote:

A few things.

1) Have prices been increased?

2) Are they automating things so they need fewer workers?

3) Are they cutting back hours?

4) While McDonald's is a billion dollar company, most McDonald's you go into are owned by a franchisee who is not making millions (okay maybe some are).

Currently my daughter is a manager at McDonald's as she works her way through college, and 2 of her siblings are working part-time with her, so I think I know as to what I speak.

1) Yes, they are increasing prices, slowly but surely.

2) They aren't adding automation, but in our area all of the lobbies remain closed. This isn't to keep us safe from Covid, it's to save on having extra workers on staff to man and clean the lobbies.

3) Our local McD's cut out the late night hours, and the local BK has been closing early (8pm) due to lack of employees.

4) My daughter's store is owned by a franchisee, not the huge corporation, but she still resents the "corporate" folks that visit.

Usually those "hiring at $18 an hour" signs have a small asterisk next to them that indicates it's only for management jobs. Or they say "up to" in small print before the $18 an hour part.

It's been a long time since I was in high school and working low wage jobs. Is $18/hr considered a lot of money?

dadoffourcs wrote:

Currently my daughter is a manager at McDonald's as she works her way through college, and 2 of her siblings are working part-time with her, so I think I know as to what I speak.

But dont pretend for a second that your story is comparable or even relevant to most people here. Your daughters may be working to offset community college or fourth tier university schools where they live at home on the weekend. Otherwise the risk is not worth it. If they were really that capable they would have better options.

do people think that's a lot? wrote:

It's been a long time since I was in high school and working low wage jobs. Is $18/hr considered a lot of money?

Nope, it's barely enough, and not even a solid wage in the midwest. I can make it work though by shopping at Goodwill, eating cheap like a college student, paying myself first, and praying I don't get sick (and taking measures to stay healthy).

Also, running keeps me in shape and reduces my odds of getting sick, going to the hospital, etc. After each month, if I'm lucky, I'm able to have $230 or so of leftover $. I don't even use the company 401k plan b/c it would be even more out of my meager $1200 paycheck (bi-weekly, after taxes).