Are you all ready to start paying about $15 for a Big Mac?

JLM

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Nov 27, 2008
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Our new illustrious premier has just announced she is raising the minimum wage by $2.25 an hour over the next year.
 

Cannuck

Time Out
Feb 2, 2006
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Our new illustrious premier has just announced she is raising the minimum wage by $2.25 an hour over the next year.

I wouldn't pay $0.25 for a Big Mac before so the answer is no. What is the minimum wage now in BC.
 

JLM

Hall of Fame Member
Nov 27, 2008
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Big Macs are made out of animal lips.

I suppose there's a good side to everything................we sure wouldn't want to see those lips go to waste! :lol:

That's not bad. Timmy's hires here at $14/hour and it obviously isn't driving customers away.

Yeah, but that's Timmy's with a solid base clientelle earning a good wage and having a lot of job security.
 

Cannuck

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Feb 2, 2006
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Yeah, but that's Timmy's with a solid base clientelle earning a good wage and having a lot of job security.

Can you point me to a website or something that shows the income and job security of customers to these two establishments?
 

JLM

Hall of Fame Member
Nov 27, 2008
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Can you point me to a website or something that shows the income and job security of customers to these two establishments?

We should try to keep this on topic but for your own interest you could check the vehicles parked outside the establishments.
 

Cannuck

Time Out
Feb 2, 2006
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We should try to keep this on topic but for your own interest you could check the vehicles parked outside the establishments.

I have no intention of taking this off topic. You said that Timmy's customers have more job security and higher paying jobs. I'm wondering if you have evidence to back it up. The type of vehicle people drive has nothing to do with income and job security and everything to do with the value people place on their ride.
 

Mowich

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Dec 25, 2005
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I echo the sentiments of RTC and Cannuk re the burgers. Regarding the proposal by CC, I am wondering who is going to pay for this increase? Fast food joints are not the only businesses affected, our rural stores will be hard put to come up with the extra funds and we, their customers will be paying much more for our grocery items. This must be in line with her goal of 'eliminating poverty' - can hardly wait to see her pull that one off.
 

JLM

Hall of Fame Member
Nov 27, 2008
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I have no intention of taking this off topic. You said that Timmy's customers have more job security and higher paying jobs. I'm wondering if you have evidence to back it up. The type of vehicle people drive has nothing to do with income and job security and everything to do with the value people place on their ride.

Well actually..................in this case it has. :lol::lol::lol:
 

SLM

The Velvet Hammer
Mar 5, 2011
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London, Ontario
$8 an hour, going up to $10.25 in three increments.
We had the same thing here in Ontario, I believe over a 2 or 3 year period (can't remember exactly). As far as I can tell, it has not adversely affected the cost of a Big Mac or anything else. Can't say whether or not the average minimum age worker has seen a reduction in hours though as an offset to the higher hourly wage.

I do know that Student Minimum wage remains lower than Minimum Wage and most front line staff at places like McD's are students.
 

PoliticalNick

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Mar 8, 2011
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If you do some math, $8/hr * 40 hrs = $320/week, $10.25/hr * 40 hrs = $410/week, that is an increase of $90/week per employee. If you are operating a business where your employees are creating returns of less than $90/week ($2.25/hr worked) you may want to rethink your business skills and maybe go get a job at Mcdonalds.

The min wage increase translates to about 22% increase in wage costs but wages are on average about 50% of total overhead so this is an increase in total overhead of about 11%. If you take the average business model with an ROI (return on investment) of 35% you have a loss in profitability of (35%*11%) 3.85%. Any increases in pricing of more than 3.85% will actually increase profitability of businesses. Keep this in mind when all these corporations start claiming they have to insitute major price increases to remain in operation.

I personally think that a company such as Mcdonalds with a net profit last year in BC of about $50million could stand to give up that 3.85% ($1,925,000) and still be happy but we will see what happens.
 

Mowich

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Dec 25, 2005
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If you do some math, $8/hr * 40 hrs = $320/week, $10.25/hr * 40 hrs = $410/week, that is an increase of $90/week per employee. If you are operating a business where your employees are creating returns of less than $90/week ($2.25/hr worked) you may want to rethink your business skills and maybe go get a job at Mcdonalds.

The min wage increase translates to about 22% increase in wage costs but wages are on average about 50% of total overhead so this is an increase in total overhead of about 11%. If you take the average business model with an ROI (return on investment) of 35% you have a loss in profitability of (35%*11%) 3.85%. Any increases in pricing of more than 3.85% will actually increase profitability of businesses. Keep this in mind when all these corporations start claiming they have to insitute major price increases to remain in operation.

I personally think that a company such as Mcdonalds with a net profit last year in BC of about $50million could stand to give up that 3.85% ($1,925,000) and still be happy but we will see what happens.

Mickey D's may not notice the increase but hundreds of small businesses around the province sure will.

BTW, there is a great game going on right now between the Leafs and Hurricanes - Leafs ahead by 2 in the third.
 

PoliticalNick

The Troll Bashing Troll
Mar 8, 2011
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Mickey D's may not notice the increase but hundreds of small businesses around the province sure will.

BTW, there is a great game going on right now between the Leafs and Hurricanes - Leafs ahead by 2 in the third.

Once again, if you are operating a business where a drop in profits of 3.85% will kill you there is something wrong with your business skills.

I would not be surprised though to see price increases of 10-20% as corporations see this as an opportunity to claim they are in the poor house and further gouge the consumer.
 

Chiliagon

Prime Minister
May 16, 2010
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I can't see the burgers going up, McDonalds will just find another way to cheapen the quality of their meat and further kill people who can't get enough of their crap!
 

taxslave

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Nov 25, 2008
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It is about time the minimum wage went up. People surviving on minimum wage have zero disposable income which does nothing to help the economy. Actually if it was not for all the NIMBYs and NOPEs infesting BC that don't want anything that creates real jobs a minimum wage law would be unnecessary because there would be enough high paying jobs around that fast food joints would not even get students for less than $12/hr. Look at Rotten Ronnies share price and income statement . There is lots of room for higher wages without raising prices or hemorrhaging red ink.
 

Avro

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Feb 12, 2007
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Our new illustrious premier has just announced she is raising the minimum wage by $2.25 an hour over the next year.


So what?

I run a business that could have employees make minimum wage but I pay much higher.

Just means less for me, I have plenty already and provides for my hard working employees.

Do I charge more than the competition?

You bet, but because of loyalty and very low turn over I offer a superior service.