Dunkin Donut CEO Who Makes $4,887 an Hour Outraged at $15 Minimum Wage

[Glassunion]

74. Yes, your math is incorrect.

Your final number is concluded based on the number of hours worked in a year for each employee on the assumption that they are all full time. That effects the outcome.

Your 64 cents came from the following estimates:
Annual Profits (P) = $216,000,000
Employees (E) = 160,000
Annual Hours (H) = 2,080

P / E / H = .649

You cannot conclude the 64 cents without dividing an entire year's worth of hours for all employees at the full time hour count.

Now if only 1/3 of employees are full time and the other 2/3rds are working 10 to 20 hours a week (we'll go with 15) the numbers change drastically.

Annual Profits (P) = $216,000,000
Full time Employees (F) = 52,800
Full time annual hours (T) = 2080
Part time Employees (L) = 107,200
Part time annual hours (S) = 780

Full Time hours worked: F * T = 109,824,000
Part Time Hours worked: L * S = 83,616,000
Total Hours (X)= 193,440,000

P / X = $1.12

Your math is flawed, because simply lowering the hours worked by 2/3rds of the employees who are not eligible for healthcare (need to work more than 35 hours a week), almost doubles the number you came up with.

But you are so stuck on stripping away company profits that no one here is stating that we should. We are simply calling a hypocrite (the CEO) a hypocrite.

How about we look at it in a business sense using realistic numbers without touching their bottom line profits, or the CEO's $4,887 an hour salary? Wage Dollars and Sales...

According to Dunkin they have 11,300 stores world wide.
There are 260,000 employees of Dunkin' worldwide.
This gives us an average of 23 employees per store. (employees / stores)
Dunkin' sells 1.7 billion cups of coffee each year
This gives us an average of each store selling about 412 cups of coffee a day. (1.7 billion / 11,300 / 365)
There are 8082 stores in the U.S.

Of the 23 employees in each store, 22 are hourly. (store managers are usually salaried)
Of those 22 only 7 are full time average based on their qualifying for healthcare.
The average hourly pay is $8.99 an hour.
So those 7 full timers are working 40 hours a week totaling 280 Labor Hours
Those 15 employees are working 15 hours a week totaling 225 Labor Hours
Giving us a total of 505 labor hours a week to run the store.
At an average of $8.99 an hour this works out to $4539.95 Wage Dollars a week.
Now to get them up to $15.00 an hour you'd have to raise the hourly pay $6.01 an hour
This would increase your Wage Dollars to $7,575 (505 hours x $15).
Now the average store sells 2,884 cups of coffee a week (412 * 7).
If you raised the price of a cup of coffee $1.05 (that's too steep), you can make up the difference.

Now coffee is not their only item, and that $1.05 can be spread out to their other offers (donuts, bagels, coolattas, cookies, hash browns, breakfast sandwiches, snack and go's, etc...), so maybe only coffee (which mind you has a 95% margin, only goes up 25 or 30 cents, which is not unreasonable by any stretch.

All of this and your precious CEO can still rake in his $10.2 million dollars a year, the company still makes its $216 million in profits, the stock still pays out, and the franchise owners can still rake in 100's of thousands of dollars "without having to lift a finger", and drive home in their $250,000 Bentley, all the while getting the working poor a decent wage so they would not have to rely on welfare to feed themselves and their family.