McDonald's, Other CEOs Tell Investors $15 Minimum Wage Won't Hurt Business

[applegrove]

McDonald's, Other CEOs Tell Investors $15 Minimum Wage Won't Hurt Business

BY JULIA ROCK AND ANDREW PEREZ, THE DAILY POSTER ON 4/5/21 AT 6:00 AM EDT

https://www.newsweek.com/mcdonalds-other-ceos-tell-investors-15-minimum-wage-wont-hurt-business-1580978

"SNIP......

Big restaurant chains are telling investors that a national minimum wage hike wouldn't be a big deal—even as their corporate lobbying groups in Washington fight plans for a $15 minimum wage.

"We share your view that a national discussion on wage issues for working Americans is needed—but the Raise the Wage Act is the wrong bill at the wrong time for our nation's restaurants," the National Restaurant Association wrote in a letter to congressional leaders in February. "The restaurant industry and our workforce will suffer from a fast-tracked wage increase and elimination of the tip credit."

The following day, a top executive at Denny's, one of the association's members, told investors that gradual increases in the minimum wage haven't been a problem for the company at all. In fact, California's law raising the minimum wage to $15 by 2023 has actually been good for the diner chain's business, according to Denny's chief financial officer, Robert Verostek.

"As they've increased their minimum wage kind of in a tempered pace over that time frame, if you look at that time frame from us, California has outperformed the system," Verostek said on an earnings call. "Over that time frame, they had six consecutive years of positive guest traffic—not just positive sales, but positive guest traffic—as the minimum wage was going up."

......SNIP"

[tirebiter]

1. They'd rather not

But if they gotta they’ll survive.

[Amishman]

2. The concern should be mom and pop places in low CoL areas

I'm not sure how well it will work out here, and there are plenty of cheaper places in other areas.

IMO it should be accompanied by some sort of tax assistance for places under a certain number of employees

[Claire Oh Nette]

3. Then pay them.

Talk is cheap.

[dawg day]

4. The McD down the road from me is advertising-

$14 an hour and a bus pass.

This comes after they've had to close a few times in the last month because they didn't have enough employees working that shift. The owner figured out, I guess, that paying a living wage is cheaper than closing and making no profits at all.

[SeattleVet]

5. Gee, funny how that works, huh?

Paying more to the workers that are the most likely to be the customers of those chain restaurants actually gives them and their families enough cash to be able spend more at these places, and other businesses in the community also pay higher rates and lets those additional people also become customers.

Exactly the opposite of their failed 'trickle down' experiments...pay the workers more, not the owners and executives, and it comes back to you.