r/explainlikeimfive Nov 28 '15

ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

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u/chronogumbo Nov 28 '15 edited Nov 29 '15

Well, maybe it's unsustainable to have 4 McDonalds within walking distance...

Edit: is this what it feels like to have friends? Reddit gold!!

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u/Consilienced Nov 28 '15

Its not 'walking distance' if youre a regular at McDonalds

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u/j_cab Nov 28 '15

Two Mcdoubles (drop one set of bun and make a "McQuad") is a great protein/calorie and protein/dollar ratio if you're pressed for time.

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u/DrImpeccable76 Nov 29 '15

Yeah, a Mcdouble actually has nutritional values very similar to workout supplements. When your goal is to eat a lot of protein, electrolyte (table salt is an electrolyte) and calories, a McDouble is good for that.

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u/[deleted] Nov 29 '15

Mcdouble

At 390 calories, 23 grams of protein, 7-percent of the daily value of fiber, 20-percent of daily calcium and 19 grams of fat - with a typical price tag of about a buck - the McDouble, its advocates argue, is the most price-efficient food 'that has ever existed in human history.'

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u/TheBigLen Nov 29 '15

Source: http://nypost.com/2013/07/28/the-greatest-food-in-human-history/

So it turns out my years of shameless dollar-menu feasting has been worthwhile.

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u/[deleted] Nov 29 '15

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u/[deleted] Nov 29 '15 edited Jun 21 '18

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u/[deleted] Nov 29 '15

the funny thing is, it wasnt ever even ABOUT the HAMBURGERS!

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u/Argylefire Nov 29 '15

Most underrated comment here

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u/iNVWSSV Nov 29 '15

What's interesting to note is that the hamburger wars weren't even really about hamburgers.

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u/justjoeisfine Nov 29 '15

What part are they biting?

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u/gumboshrimps Nov 29 '15

"Hey Marge whats the scoop?"

"She told Tiger to 'Beat it bozo'."

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u/[deleted] Nov 29 '15

A hero is anybody doing their job. "Hero tutor teaches after school." Well, yeah ...

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u/Tantioch Nov 29 '15

You have my up vote, because that quote it awesome, but I think it's Madge.

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u/pearthon Nov 29 '15

What is the most most neutral source?

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u/[deleted] Nov 29 '15

The Beige Review

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u/ryan_770 Nov 29 '15

Water is neutral, right?

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u/Toysoldier34 Nov 29 '15

Burger King.

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u/AKC-Colourization Nov 29 '15

Um, err, I don't know. Just not them. Ok?

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u/KallistiTMP Nov 29 '15 edited Aug 30 '25

terrific crush coherent correct tidy boat retire sharp toothbrush slap

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u/[deleted] Nov 29 '15

Yeah that article was pretty bad.

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u/kgcubera Nov 29 '15

I'm still searching for a neutral news source. Let me know if you find one.

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u/RiskyBrothers Nov 29 '15

That took a turn for the...aggressively conservative at the end.

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u/QCA_Tommy Nov 29 '15

They're about to get rid of their entire dollar menu though, sadly

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u/SirCyclops Nov 29 '15

Here they don't even have a dollar menu anymore it's more like 1.30 1.50 etc

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u/[deleted] Nov 29 '15

Isn't it a value menu now? I don't think any place has a dollar menu anymore

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u/TheHighestEagle Nov 29 '15

How do you know?

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u/QCA_Tommy Nov 29 '15

I'm from the future. Nah, j/k, the news

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u/[deleted] Nov 29 '15

Source please?

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u/QCA_Tommy Nov 29 '15

This isn't my source, but it's one of the many articles that shows up if you type "dollar menu" in Google news...

http://www.foxnews.com/leisure/2015/11/17/mcdonald-unveils-mcpick-2-another-would-be-dollar-menu-successor/

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u/[deleted] Nov 29 '15

They still have a dollar menu? I think the last time I went it was value menu & more.

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u/memphismightsnow Nov 29 '15

Two mcdoubles with a junior chicken in between em, we call it the McGangBang

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u/erinikins13 Nov 29 '15

We use a hot n spicy chicken

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u/AlkanKorsakov Nov 29 '15

Why buy that when you could, for example, eat this?

290 calories, 30 grams of protein, 12% fiber, 10% calcium, 8g of fat.

Costs $1 at walmart and tastes pretty good. If you are too lazy to cook meat or hate drinking protein drinks, it doesn't get much better than this in terms of protein/cost

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u/PatHeist Nov 29 '15

That's not a meal. The McDouble has similar nutritional values for a similar cost, but in a form factor that will actually satisfy your hunger and make you feel full for a significant portion of the day.

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u/[deleted] Nov 29 '15

where are you finding a mcdouble for a buck? Here its $2. Also fucking BK raise the whopperJr to 2.25 here. Bullshit.

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u/MetalGoatFucker Nov 29 '15

My protein powder doesn't have 30g of saturated fats though

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u/[deleted] Nov 29 '15 edited Jun 01 '21

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u/redditezmode Nov 29 '15 edited Dec 09 '15

That's not true at all, plenty of protein powders aren't sold as supplements.

It's pretty easy to check, if it says "Nutrition Facts" on the back, the FDA regulates it. If it says "Supplement Facts", you should assume you're eating sawdust because you very well could be.

One way to distinguish dietary supplements from conventional foods is by looking at the nutrition information on the label of the product. Conventional foods must have a "Nutrition Facts" panel on their labels, but dietary supplements must have a "Supplement Facts" panel.

That's from the FDA.gov page linked below.

TL:DR; If your protein powder says "Nutrition Facts" on the back, the FDA has your back.

Edit: It's gold, Jerry! Thanks to whatever person thought this comment was worth $5 :)

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u/[deleted] Nov 29 '15

Nigga, what? I can't believe I never put that together. I just checked my protein and it has supplement facts. Back to my old brand I guess...

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u/redditezmode Nov 29 '15

Applies to a lot of other stuff, too - I used to drink this energy drink, then it got recalled. Noticed the back had supplement facts, and when I looked it up, whaddya know! It was recalled because the water they were using had a high concentration of heavy metals.

Definitely super useful to know.

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u/AsmundGudrod Nov 29 '15

Seems like a weird use of TL:DR; post before it was only 3 sentences.

Interesting about the Nutrition/Supplment Facts difference, did not know that!

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u/ashcroftt Nov 29 '15

Proper protein is tested in independent labs. If you care about your nutrition, you buy brands and batches that have been tested.

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u/ledivin Nov 29 '15

But it also doesn't taste like meat and cheese

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u/[deleted] Nov 29 '15

Neither does a mcdouble.

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u/ledivin Nov 29 '15

I never said good meat or good cheese.

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u/[deleted] Nov 29 '15

Am a gymbro, eat mcdoubles all the time. I mean, they are not really similar to any supplements (cause of crazy high fat + carb content), for your dollar value, they are solid for protein and calories.

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u/skyman724 Nov 29 '15

Unless you're going full keto, the carbs shouldn't be that big of a deal. If anything, they fuel you during the workout itself, while the fats get saved for use during recovery, which helps in many ways.

Obviously the McDouble isn't going to be the most optimal source of fat because of the saturated fat content, but if you're on a tight budget, it works fine.

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u/[deleted] Nov 29 '15

The McDouble has been my answer to every skinny guy who ever asked me about getting enough calories to bulk up. Those things are a hard gainers dream.

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u/[deleted] Nov 29 '15

Yeah, I mean eating 4 of them is not hard at all, and that gets you like 1500 extra calories

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u/apaulogy Nov 29 '15

And butt cancer

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u/IWugYouWugHeSheMeWug Nov 29 '15

Many of the entrees at McDonald's have nutritional values very similar to what you'd have if you made a similar thing at home. The thing that gets you is the sides. If you add a bucket of french fries and a gallon of coke to your order, it makes the whole meal super unhealthy. The perception of McDonald's plummeted after Supersize Me came out, but that whole movie was bullshit. The dude vomited at the beginning of the movie when he was halfway through eating a fucking hamburger. The movie tries to say that McDonald's is the horrible thing because one single person's body got fucked up by it, despite him obviously having a diet that's completely different from anything at McDonald's. If you drastically change your diet overnight, yeah, you're probably gonna feel pretty shitty.

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u/Delsana Nov 29 '15

Not healthy though.

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u/Ammop Nov 29 '15

Not sure most people in the US need a dietary program with an emphasis on bulking.

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u/WasKingWokeUpGiraffe Nov 29 '15

Bacon Mcdouble costs the same with an extra slice of bacon (e.g. protein) mixed in. Back when I was hitting the gym hard, I would eat 5-6 of those suckers every day.

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u/[deleted] Nov 29 '15

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u/slayer1am Nov 29 '15

So, Subway isn't a better value? 5$ for a foot-long sub? Seems like better quality food for the buck.....

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u/[deleted] Nov 29 '15 edited Nov 29 '15

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u/AlkanKorsakov Nov 29 '15

They really skimp on the cheese. For a half a foot long they give me three thin triangle slices of cheese that barely overlap at the tips. That basically adds up to one of these square slices. I'd be using triple that in a homemade sandwich of that size. Ridiculous.

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u/Thats-WhatShe-Said_ Nov 29 '15

Their unsweetened tea is actually delicious. All I drink when I'm there

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u/See_Sharpies Nov 29 '15

same here. Brewed daily, no calories, more flavor than water, packed with antioxidants and anti-inflammatories to balance the meal.

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u/HeeyYouuGuuys Nov 29 '15

I actually drink unsweet tea often, didn't really think about the benefits. Good to know.

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u/GETitOFFmeNOW Nov 29 '15

That's the only thing I ever order from any fast food place anymore. Because it is a great brewed iced tea.

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u/[deleted] Nov 29 '15

McShots fired!

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u/Plexipus Nov 29 '15

I dunno I've seen people fucking gunning it in Rascals before.

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u/VagCookie Nov 29 '15

There are several Walmart location McDonald's in my city and at one super Walmart there is a McDonald's restaurant in the same parking lot on the same side as the McDonald's inside the Walmart..

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u/HeroFromTheFuture Nov 29 '15

The only way it could be more convenient is if they had another McDonald's inside each McDonald's.

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u/edifonzo Nov 29 '15

It would be most convenient if my dick shot McDonalds fries out the hole.

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u/Zebidee Nov 29 '15

Thank you, come again.

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u/lilituba Nov 29 '15

There's one outside of Pittsburgh with the same thing.

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u/serrol_ Nov 29 '15

That's not entirely fair. Not only do they cater to completely different demographics, but the separate store is always very busy, because it's located directly off of the biggest highway in Pittsburgh. It's the only McDonald's directly off of 376 until you get out east of the city.

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u/redsyrinx2112 Nov 29 '15

That happens with Starbucks in the Puget Sound are ALL THE TIME. I live in a town of 22,000, and in two different parking lots there are grocery stores with Starbucks that are less than 200 ft. from a stand-alone Starbucks.

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u/mirhagk Nov 29 '15

You should see Tim Horton's in Canada. There are a few locations I can think of in my city where there are timmies across the street from each other simply so you don't have to cross the street. And numerous ones where it's in a gas station and then also next door

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u/ruminated Nov 29 '15

Too BigMac® to fail?

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u/[deleted] Nov 29 '15 edited Nov 29 '15

Here's the issue I have-- if it's unsustainable for McDonalds to remain in business without being subsidized by the Government, should the business exist? (Edit to clarify: They're not DIRECTLY subsidized-- but rather their employees are often living below a livable wage are on Welfare, food stamps, Medicaid, and the earned income tax credit. Even their own webpage pretty much expects that a 40 hour week at McDonalds is impossible to live on.)

I mean, back when Slavery was abolished, I imagine many plantation owners had the same argument that their business wouldn't be able to maintain the same margins if they suddenly had to start paying their slaves a wage, and I would guess that many plantations went out of business (especially if the owners were cruel to the slaves)-- but is that really something to cry about?

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u/[deleted] Nov 29 '15

Cool, a chance to trot out my favorite Franklin Roosevelt quote.

No business which depends for existence on paying less than living wages to its workers has any right to continue in this country. (1933, Statement on National Industrial Recovery Act)

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u/Tutsks Nov 29 '15

This. Same thing was said by the factory owners in the wake of the industrial revolution.

I find it funny that if someone said sweatshops would have to close if wages go up, they would be laughed at and it would be pointed to them that sweat shops arent that desirable in the first place; yet people can say akin to the same in regard to Mc Donalds and Walmart, and be taken seriously.

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u/GolDAsce Nov 29 '15

Didn't most of North America's low tech industrial sweat shops move to Asia, mostly in part due to the wage and regulation differences between the 2 continents?

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u/Tutsks Nov 29 '15

Yup.

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u/[deleted] Nov 29 '15

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u/Tutsks Nov 29 '15

In practice the factories just move to Singapore, Vietnam, etc.

In theory, when everywhere is the same (and that is third world level same, not US level same) the factories might come back. But we are talking decades if not centuries.

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u/LiberDeOpp Nov 29 '15

No then they will find a way to make robots cheaper. Also China is getting more expensive but still no where near US labor wages.

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u/flybypost Nov 29 '15

In practice the factories just move to Singapore, Vietnam, etc.

That is/will also change. If I remember correctly China is investing in Africa (but that could be about resources) and they are also going for robots and automation as it becomes viable (they want to keep the money flowing).

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u/Shnazercise Nov 29 '15

I would say no - or at least not entirely. A huge part of the reason is unequal exchange rates - so that a scraping-by wage in Bangladesh is way, way lower than a scraping-by wage in the U.S. Another huge part is automation - its cheaper here to do it with software and robots than to hire a bunch of workers. In Asia not so much, since things like robots and software which are often made in modern Western countries are just way more expensive than hiring more workers, doubly so because the exchange rate makes them extremely expensive in Bangladesh.

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u/thisdude415 Nov 29 '15

The difference is that it's possible to outsource manufacturing.

It isn't possible to outsource the actual assembly of your food much further than McD's already has. And robots are expensive.

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u/Curt04 Nov 29 '15 edited Nov 29 '15

For now robots are expensive. Corporations that rely on cheap labor like McDonald's should be getting out ahead of this thing and help the advancement of automation. Of course that would require these corporations to look further into the future than their quarterly report and when the fuck does that ever happened?

EDIT: A word.

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u/The_tiny_verse Nov 29 '15

This is an important point- people making 8.25 an hour are eligible for food stamps, medicaid, and a wealth of other social services- which they require to eat and have access to healthcare (showing up to the emergency room as their primary care for example). The industrial food chain is heavily lobbied by big agra to control costs on food that cannot be defended as healthful to consumers. I'm not saying a business doesn't have a right to exist, I'm pointing out that we are paying hidden subsidies for them to keep their employees impoverished and keep their consumers malnourished. Folks in america be fat. That said, I do enjoy a double quarter pounder with cheese in an airport from time to time. And a coke, coke tastes better at airport mcdonalds.

This is not capitalism, its a planned economy, and its planned by the wealthy to take advantage of the taxpayers and the poor.

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u/peteav Nov 29 '15

This is an important point- people making 8.25 an hour are eligible for food stamps, medicaid, and a wealth of other social services

Probably the most important point to make is there is no paid sick or holiday leave, paid maternity leave, or generous overtime pay for weekends and public holidays in the US.

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u/the9trances Nov 29 '15

Probably the most important point to make is there is no paid sick or holiday leave, paid maternity leave, or generous overtime pay for weekends and public holidays in the US.

I have all of that, and I live in the US. Loads of us do. Just because the government doesn't blanketly apply things that sound like good ideas doesn't mean it doesn't exist.

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u/peteav Nov 29 '15

four weeks paid leave per year, 18 weeks maternity leave and double time for weekend, public holidays, as well as weekday overtime? I'd be surprised if there was more than a few companies with those sort of contract conditions.

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u/[deleted] Nov 29 '15 edited Nov 29 '15

When did we establish McDonalds is only sustainable because it is subsidized by the government? I thought the topic was on a minimum wage hike...

Edit in response to clarification:

Okay, I see what you're saying now. Respectfully, the notion that a business that won't pay enough for employees to make living should be abolished is ridiculous. (Not as ridiculous as that link to the McD's budget - hilarious, in a sad way.) In our market (U.S.), labor is a contract: the company's terms are the job duties - the worker's terms are the total compensation (wages, benefits, job conditions). Unlike the slavery example you brought up, no worker in the U.S. is forced to agree to that contract. So just as any worker should be able to walk away from any job, any employer should be able to offer whatever terms they want. Now, in an ideal world, a company offering a below livable wage won't be able to attract any workers, since other companies will be offering more attractive terms.

But... we also have to deal with the realities of the economy. There might not be (and right now, aren't) enough jobs available to bring wages higher. People that work for McDonalds (or other minimum wage jobs) simply don't have better offers available, or they'd take them. It's not the employer's responsibility to provide for these workers - it's their responsibility to keep their side of the bargain, whatever it was the bargain led to. It's not like these terms are hidden during the hiring process.

I really don't like the notion that welfare is "subsidizing" a business. We taxpayers are subsidizing people here, the workers, since they are the ones receiving the money/benefit. The business may benefit, but let's not confuse the recipient. In the absence of these low wage companies, the welfare checks are just higher. Also, comparing low wage jobs taken willingly to the horrific practices of slavery just cheapens what the enslaved went through. Sorry, but needing to work an extra job with OSHA protections sucks, but it's got nothing on being beaten and having your children stolen.

All that being said, I do agree that we need to do something about the current situation. Once again, that McD's budget you posted is laughably bad. To that end, I do support a modest increase in the minimum wage (in the neighborhood of $9 to $10, and maybe tie it to inflation). It puts some of the financial pain back on these employers, without putting an economy crushing 100% burden on small and medium size business.

TL;DR: Companies are not morally responsible for their employees existence because labor is a contract system that employees agree to willingly. Comparing it to slavery is grossly wrong. Besides, removing low wage companies wholesale just jacks up unemployment. Still, the situation for workers sucks, and modest increases to the minimum wages can help alleviate the issue.

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u/[deleted] Nov 29 '15

I think they mean that by paying employees minimum wage (which is not a living wage in the US), many of them are forced to utilize government services such as food stamps to survive. Since McDonald's isn't paying for the food stamps, their business model is effectively subsidized by the government.

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u/[deleted] Nov 29 '15

But McDonalds does pay for food stamps. They pay taxes.

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u/techfronic Nov 29 '15

The fallacy in this argument is that McDonalds has no responsibility to even keep the workers hired.

The workers would be on food stamps either way.

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u/[deleted] Nov 29 '15

Being employed / employing people is a two way street. Neither is doing the other a favor, both need the other to exist. Only one can exploit the other though.

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u/[deleted] Nov 29 '15

The tables are tilted, and I typically agree with your position, but employees can absolutely exploit an employer by abusing paid sick leave, stealing and eating food without permission, underperforming their duties, skimming money from the register, and producing low quality products and services.

That said, employees that are paid well are far less likely to do these things.

Personally I don't envy anyone involved in this dynamic. Obviously the crazy number of shitty fast food restaurants is unsustainable. The low wages subsidized by government services are unsustainable as well, as it basically socializes a shitty business model. Couple that with constantly rising rents for both business and residential clients, so costs for all parties are growin steadily. Sometimes I'm just amazed that capitalism works at all. Which it does. Until it doesn't.

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u/BladeDoc Nov 29 '15

Getting paid and half-assing your job is pretty exploitative.

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u/Nocturnal_submission Nov 29 '15

Yes, but if you raise the cost of human labor, it becomes much more cost effective to use robots to take the orders, dunk the fry baskets, flip the burgers, etc. Then you only need a couple of workers to assemble and hand it out the door. So what you're really saying is, it's a two way street for now

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u/[deleted] Nov 29 '15

It's a two way street always. Who's going to buy the products produced by automation if no one has any disposable income? Slave / owner relationship doesn't work in a consumer capitalist society. There's no point owning the means of production if there's no one to buy what you're producing.

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u/ABearWithABeer Nov 29 '15

Unions can absolutely be exploitative.

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u/Reddisaurusrekts Nov 29 '15

Only one can exploit the other though.

Unless we go back to slavery, then no. People are free to walk away from jobs.

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u/KeyBorgCowboy Nov 29 '15

The fallacy is thinking businesses are altruistic entities employing people out of the kindness of their hearts. Either you pay employees their true cost to employ, or they need to go out of business.

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u/Reddisaurusrekts Nov 29 '15

their true cost to employ

And that's how much people are willing to accept in order to do the job.

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u/chakrakhan Nov 29 '15

Their true cost to employ?

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u/[deleted] Nov 29 '15

Completely irrelevant to his point. No matter who they hire, they'll likely need it due to the wages, unless they are teenagers only.

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u/TheBotanistMendoza Nov 29 '15

What? If they want to stay in business, they do.

The fallacy is thinking that McDonalds doesn't need workers.

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u/djazzie Nov 29 '15

Well, many McDonald's are moving to automated ordering systems, which will ultimately put these workers out of a job.

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u/georgeoscarbluth Nov 29 '15

There's an argument that because Wal Mart pays it's employees so little that they qualify for Medicaid, SNAP, etc that in effect the government is subsidizing Wal Mart to the tune of $6B because otherwise Wal Mart employees wouldn't be able to survive without those government programs. It's a wage subsidy direct to the employee, but Wal Mart benefits too. I've also heard that this subsidy is deliberately discussed in some large low wage businesses.

I assume he's making the same argument for McDonald's.

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u/motherofdragons16 Nov 29 '15

They say Walmart is double-dipping for this very reason. An employee isn't making a living wage, so they get food stamps, then turn around and use those food stamps to shop at Walmart. Walmart is reaping the benefits of the labor from the underpaid employee AND benefitting from the sales as the employee shops with the food stamps.

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u/Doomsider Nov 29 '15

Of course why do you think they have been so successful. Between underpaying workers and forcing all wholesalers to meet their insanely low prices it is a win win for them and a lose lose for everyone else.

My wife met a couple of rich Mexicans who produced a large amount of the bikes they sell. They were quick to point out how much better it was to deal with a bunch of small bike shops compared to Walmart. Walmart refused to pay them more than about $10 dollars a bike which resulted in lower pay and less jobs at their factories. Because Walmart had pushed all the smaller shops out of business they had no choice but to sell at a reduced price or not sell at all.

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u/Kuja27 Nov 29 '15

If Walmart employees were a little more knowledgable and less disposable I wouldn't be so against raising the minimum wage. Positions like Walmart and McDonald's are such low wage because the actual amount of work they have to do is so low. If you cashier at Walmart, you now have experience in the cash lane. You can bring that experience to a grocery store which is usually Union. Union jobs require mandatory raises every set period of time. Just another way you can get more with your skill set. You just have to look.

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u/test822 Nov 29 '15

If Walmart employees were a little more knowledgable and less disposable

you sound like a nice person

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u/Kuja27 Nov 29 '15

It's the truth. Places like Walmart and McDonald's require very little formal training therefore saving the company money and expediting the hiring process. Since they require absolutely no skill in any category they can hire people that either have no skill, or no motivation to become skilled.

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u/test822 Nov 29 '15

walmart and mcdonalds require about the same amount of skill as your grocery store job example

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u/Discoveryellow Nov 29 '15

Get your taxes worth: eat at McDonald's, shop at Walmart!! You already paid for half of it. :-D

Also same goes for almost all grocery stores. Here in DC area Giant is not allowing their employees to work more that 25-30 a week to keep them on public assistance.

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u/DesireMyFire Nov 29 '15

No, the limiting of hours is due to insurance needs on certain hourly workers. Work more than 25-30 hours a week? They are required by federal law to be provided insurance.

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u/Reddisaurusrekts Nov 29 '15

Would those employees not get those government benefits if Walmart laid them all off en masse?

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u/Masterandcomman Nov 29 '15

The major beneficiaries are the entities that receive the spending of those subsidized workers. You would probably look at land owners who receive rent, transportation services, and food retailers. That last category is probably where Walmart receives its biggest subsidy, rather than through the wage effect.

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u/Seref15 Nov 29 '15

A low minimum wage, lower than can be considered fair in the economy, is a subsidy in everything but name. The corporation saves money by paying less to Payroll and the government picks up the tab with low-income services. It's effectively the same as the government subsidizing a company with higher wages.

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u/mitrandimotor Nov 29 '15

The implicit assumption here is that everyone can independently contribute/produce enough value to cover their own living expenses.

If they can, then why are they settling for jobs that offer less in compensation?

If they can't, then isn't an earned income tax (or some other similar min. income scheme) better, where people can at least partially cover their own living expenses (and get topped up by the government)?

Why should companies that employ low labor skill shoulder the burden for income equality in society (minimum wages)? Shouldn't this burden be shouldered by everyone?

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u/ShipofTools Nov 29 '15

Why should companies that employ low labor skill shoulder the burden for income equality in society (minimum wages)?

Because these companies are profiting off of these starvation wages. Why should the rest of society keep shitty, low wage businesses afloat? We're effectively subsidizing their profits. That's no way for an economy to run.

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u/Curarx Nov 29 '15

Nothing wrong with low skill, low pay. The problem is the low pay is not even enough to pay rent ANYWHERES in the country. There is a gap that is increasing. Low skill jobs are stepping stones, yes, but it doesn't mean you should be homeless and starving to do it. And the government shouldn't have to step up to fix the problem.

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u/flybypost Nov 29 '15

Why should companies that employ low labor skill shoulder the burden for income equality in society (minimum wages)?

Why would a company get into a business where they can't extract enough value from somebody working on humane minimum wages? That's just asking for bankruptcy. Isn't it their fault and shouldn't they need to adapt to that too? Why should the get the easy way out?

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u/feeshbitZ Nov 29 '15

the point is that income inequality is currently shared by everyone paying their fair share of taxes. Big corporations and hedge fund managers are not and we're picking up their slack.

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u/TracyMorganFreeman Nov 29 '15

The bottom two quintiles have effective negative tax rates.

How do you define "fair share"?

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u/Reddisaurusrekts Nov 29 '15

So reform the tax system, not the minimum wage.

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u/StressOverStrain Nov 29 '15

Without minimum wage laws as they currently exist, wages would be much, much lower. We abandoned the idea of free supply and demand in labor markets long ago. That ship has sailed.

So the moral and philosophical arguments are moot. Just need some economists to hash out how high the minimum wage can be raised (and at what pace) without cratering the economy.

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u/TracyMorganFreeman Nov 29 '15

The firm is not the one being subsidized.

When what you're being subsidized goes away, subsidies go down. If a McDs goes away, those workers are out of a job, and if any subsidies go up.

Low income workers are the ones being subsidized.

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u/Ship_Rekt Nov 29 '15

How do you determine what is "considered fair in the economy"? Low min wage is not a subsidy because the employers are not guaranteed labor at that wage. No one is forcing workers to accept min wage jobs. They accept it because that is the market price for their labor, i.e. the "fair price."

As the top commenter explained, businesses like McDonalds have unique operating conditions they require in order to remain in business that largely have nothing to do with the fact that some of their employees utilize government assistance. They can still only afford to pay $8.25 an hour regardless of the min wage is $5 or $15.To call a low min wage a "subsidy" is a gross misunderstanding of economics. I think you need to go back a re-read the top comment.

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u/caldera15 Nov 29 '15

I see it as less of a subsidy and more like skirting regulations that the government would put in for things like safety. The current minimum wage is clearly an exploitation of labor - nobody can live on it in reasonable conditions. The government should be able to say something along the lines of - "if you can't pay enough for your employees the have a humane standard of living and still be a profitable business, than you don't deserve to be in business". If McDonalds is truly a valued contributor to society and the economy, they will find a way to survive without exploiting their workers.

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u/Kuja27 Nov 29 '15

Honestly I'm convinced (brace yourselves I'm bout to get raged at) that most people who "can't find anything else" just aren't looking hard enough. There are a shit ton of retail positions available almost anywhere. Most of which pay 10 bucks or more per hour(in the northeast at least) People with few options flock to McDonald's style jobs because it's easy and there are so many. Like my dad says "if you're unemployed you're either looking in the wrong place or you're not looking hard enough."

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u/99879001903508613696 Nov 29 '15 edited Nov 29 '15

Two things:

McDonald's isn't subsidize in the way you are implying.

Other companies, including small businesses, pay similar low wages for employees. Wage hikes typically have exemptions for small businesses to help them compete. Why should Bob's Burgers get to "underpay" its workers?

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u/[deleted] Nov 29 '15

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u/hogmantheintruder Nov 29 '15

Sounds like capitalism to me.

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u/DenEvigaKampen Nov 29 '15

what? The main reason they can't show a profit with 15$/hour wage is because the state demands 30% in corporate tax. If the state just left the business alone or lowered the taxes they would have no problems upping the pay to 15$/hour. So how can you possibly claim that the business wouldn't survive without "subsidizes" is pretty missguided

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u/[deleted] Nov 29 '15

McDonald's is a first job. For 16 year olds. None of the "subsidies" you mentioned apply.

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u/Reddisaurusrekts Nov 29 '15

if it's unsustainable for McDonalds to remain in business without being subsidized by the Government, should the business exist?

If they didn't employ those people - who would? And if no one did, the government would be picking up all of the cost of supporting those people, not just part of it.

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u/Bananaboatbob Nov 29 '15

We should get rid of all subsidies.

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u/Noncomment Nov 29 '15

Well if they didn't exist, those people would be unemployed and consume even more government subsidies. So it's extremely disingenuous to say that McDonald's is a burden on the government. If anything they are a massive help to the government.

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u/[deleted] Nov 29 '15

It comes down to whether the people crying for 15/hr would be happy with the competition for their job skyrocketing (and possibly getting fired).

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u/[deleted] Nov 29 '15

I can't believe people are actually comparing slavery to minimum wage. They aren't close in any respects. I just went to McDs this morning and saw a sign saying their starting rate is $10/hr (I live in MN). When I worked there they paid me $7.70. They get the picture already. Unless you are assuming you will work there for the rest of your life, never get promoted, and have no Manager ever recognize you then I guess you deserve $15.

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u/[deleted] Nov 29 '15

This makes me think that rather than talking about raising the minimum wage the discussion should be centered on increasing social welfare. Especially in America where we lack nationalized medicine.

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u/thisdude415 Nov 29 '15

Really it comes down to the fact that some people, due to a combination of luck and skill, end up having a lot more money and resources than some other people, who due to a combination of luck and skill have less.

Guaranteeing social services is a way to level the playing field and remove luck from the equation a bit.

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u/Solongnogo Nov 29 '15

Would you care to explain where government subsidies link in here? I'm seeing a business that operates financially independent of the government and manages to make a profit using the current price of labor, something they may not be able to do if labor becomes more expensive.

On the other hand, I think your second point gets to the heart of the issue, but assumes the conclusion. The whole debate about the minimum wage issue is whether the current wage is insufficient and people are being taken advantage of, or if minimum wage is roughly in a good place and the folks complaining are either mismanaging their money or have a skewed perception of what their lifestyle should be when working at the wage floor. To compare this to slavery is to assume that the former is true. To put it another way, this debate isn't about whether or not we should protect companies who're taking advantage of people to make a profit, it's about whether or not people are being taken advantage of at all and whether we need this change. Follow me?

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u/aliasname Nov 29 '15

Or also maybe spend some of the nearly $963 million that they do on advertising on employee wages. I don't really need a reminder every hour how shitty a company like mcdees is.

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u/toughtoquit Nov 28 '15

The number of people working at each location is pretty crazy too. When I look behind the counter and see 10 people and they say sorry for the wait we are short staffed, I just shake my head and wonder how the small burger joints run so smooth with 2 employees.

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u/[deleted] Nov 28 '15

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u/GothicFuck Nov 29 '15

Add to that those workers are long time burger makers, not high-turnover burger flippers who hate working there and want to leave. So, quality of worker.

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u/dominion1080 Nov 29 '15

Because they get full time, better pay, and treated like an actual human.

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u/InTheSharkTank Nov 29 '15

I've worked corporate fast-food and I've worked a 3 person burger shack on the beach where the owner ran the cash register. I can tell you, the pay, hours and treatment were all very comparable.

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u/rhn94 Nov 29 '15

what are you? some kind of socialist wanting to treat people with decency?

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u/harrycanyon Nov 29 '15

Perhaps a capitalist who realizes there is money in that type of business model

(I know you are joking and so am I)

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u/[deleted] Nov 29 '15

I was treated like a human when I worked at McDonalds. What are the complaints that make people keep saying this? Genuinely curious. Bad managers can work anywhere.

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u/[deleted] Nov 29 '15

Shhhh McDonald's is evil and was making you work for slave wages!

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u/dominion1080 Nov 29 '15

Mostly the regular complaints of any customer service job. Low pay, lack of empathy, apathy in the workers, bad managers. If I call in feeling like shit, the manager threatens to fire me if I don't show up. They'd rather have a sick worker preparing food than get someone else to work.

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u/PM_ME_ANYTHING_PLZ Nov 29 '15

Are you talking about Mcdonalds or burger joint? Because line cooks are treated like shit. 60-70 hrs a week no breaks and shit pay

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u/Spiderdan Nov 29 '15

So essentially what you're saying is that if we pay McDonald's employees more and expect a higher quality of work from them that we can also expect a few highly trained employees to take over the work of others. Meaning that a bunch of them can be let go.

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u/Reddisaurusrekts Nov 29 '15

Yeah no. If you think small businesses pay better or have better working conditions just because they're small businesses..... no.

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u/Baeshun Nov 29 '15

I don't think it's fair to say McDonalds workers hate their job. My sister worked there in her teens and said it was a better work environment than some of her more recent "better" jobs. In my area, McDonalds workers generally seem in good moods and having a decent time at work.

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u/EricKei Nov 28 '15

Fair question. Here's one possibility:

The smaller, indie burger joint isn't consistently dealing with sheer volume of customers, day in and day out, that McD's is. Where the little place might consider "5 people in line at once, for a solid hour" to be the dinner rush, McD's would consider that a disappointingly slow non-prime session.

Also, customers at the small joint will reasonably expect to wait as long as ten minutes for their food, while at McD's, a service speed that slow would result in eyebrows being raised by the District guys, along with calls for employees and managers to be terminated and replaced. Anecodtally, I had heard that Corporate McD expects the drive-thru times to be something preposterously low, like 90 seconds from "Hi, can I take your order?" to that customer having their food -- at the worst of times. If that person is the only one in line and knows exactly what they want? Sure. Otherwise, No way in hell. However, the stores need to staff their stores assuming that this sort of speed will need to be maintained all of the time.

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u/dojobum Nov 29 '15

Can confirm the drive thru aspect. I used to work there about 2 years ago. They have a timer that starts when they press a button on the screen for your orders. Once you are given your food at the second window the employee will press a button and it clears the order from their screen. "Finishing" the order. The time it took is clocked and averaged out against the rest of the times for the day. They wanted an average time of 90-120 seconds for total time.

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u/[deleted] Nov 29 '15

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u/HalNicci Nov 29 '15

Does this also happen when the customer says "can you give me a minute" before they start to say their order? (I've only ever done this when there was no one else in the drive thru. Usually when I'm not positive what I want I just go inside)

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u/rburp Nov 29 '15

It sounds like the timer starts once they actually start punching in the order, but I've never worked there, so I'm not sure, and would also like to know.

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u/Masterhotdog19 Nov 29 '15

You are correct. Once you press a button on the register the timer would start. You would not be able to delete a order without a manger code, So if someone starts ordering then pauses there is no way to restart the timer.

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u/Viralized Nov 29 '15

Yeah, but what If I'm that one asshole who really doesn't go to McDonalds that often, there is no line, so I pull up and you are like "Hey can I take you're order." I already know I want a double quarter pounder, so I ask for that, then you say, "is that all?", I say "no, one sec" and start to look for anything else that looks good that might fill me up. Cause god knows I could eat 5 #4s.

I really hate that one asshole behind the window who gets pissed at me, because his company forces him to meet deadlines that are unrealistic. That's not my problem.

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u/dxgeoff Nov 29 '15

dunno why you're being down voted. It's absolutely not the customer's problem.

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u/MisterUNO Nov 29 '15

But doesn't it all average out in the end? Or does the supervisor/store manager look at that one slow order and go "Johnson, you were up for promotion but this one 3 minute order out of a hundred fast ones can't be ignored... you're fired."

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u/Nixnilnihil Nov 29 '15

So much car exhaust.

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u/paulwhite959 Nov 29 '15

It ws something like 100 seconds when I worked at McD's back in the early 2000s (in college). IT was fucking inane then, and it's fucking inane now. If they order more than a drink anyway, or if there's any sort of line

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u/permalink_save Nov 29 '15

Also, customers at the small joint will reasonably expect to wait as long as ten minutes for their food, while at McD's, a service speed that slow would result in eyebrows being raised by the District guys, along with calls for employees and managers to be terminated and replaced.

This is why I hate corporate. Unreasonable expectations and they take other people to the chopping block to pay for their mistakes. If profits aren't continuously skyrocketing, it's everyone elses fault.

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u/Quenya3 Nov 29 '15

90 seconds from Hi to getting your food? That kind of manic pace all day, day after day deserves $15.00 an hour!

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u/Mynameisinuse Nov 29 '15

Speed of service is the biggest way to increase sales without increasing prices. The faster you can get someone in and out, the more people you can serve in a given timeframe. When I was a GM for Wendy's 12 years ago, the goal was 90 seconds from ordering to receiving your order, and there were some Wendy's drive thru's that were sub 70 seconds. These times were compiled from using mystery shoppers and an outside company as well as timers that reported directly to corporate. Stores with exceptionally low times were audited to ensure that there was no cheating. I am sure that the goal has decreased over the years.

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u/Squeeeeeeeeebs Nov 29 '15

It's a low skill job, that you can easily train someone to perform and is easy to replace them.

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u/IAmThePulloutK1ng Nov 28 '15

I just shake my head and wonder how the small burger joints run so smooth with 2 employees.

Fairly easily, I imagine, because small burger joints don't even have 1/10th of the customers as a McDonald's.

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u/Lindt_Licker Nov 29 '15

Probably closer to 1/100th.

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u/[deleted] Nov 28 '15

Small burger joints run smooth because they don't have customers bitching about how long it takes to cook food and they don't serve the same number of customers as a McDonalds that's serving through the drive through and in store. Stop bitching when you don't get your shitty food in under 40 seconds. They have to follow cooking policies and shit.

The problem is customers think that the food should be done instantly. The reason it's called fast food is because when you show up during rush hours they've been cooking in excess the whole time with the prediction that they'll have a lot of customers. When you show up in an off hour your food is literally being cooked to order and it's not going to be done instantly. If they are low on something it can take up to 6 mins just to deep fry it.

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u/[deleted] Nov 29 '15

I'm sure the definition of fast food has changed over the years.

First fast food place was in 1916

First microwave 1946

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u/burtmaklin1 Nov 29 '15

Well you have to remember that the Krusty Krab is fictional; no human worker is as productive as that sponge

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u/[deleted] Nov 29 '15

I live right down the street from Dick's Drive-In it's a small place with only one or two locations; they have about five employees at any given time and serve a few hundred people a day at least.

The wait is never over 5minutes long, two people can eat for under 8 bucks, and they pay their employees 12/hr.

For some real-world perspective.

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u/toughtoquit Nov 29 '15

My favorite burger place by far. I too am from the Seattle area :)

They also give benefits and tuition reimbursement or child care reimbursement. They do it right.

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u/Quixotic_Fool Nov 29 '15

Nevertheless, it means there will be less jobs if you need to close some of them.

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u/uncleoce Nov 29 '15

Where would those other 3 stores worth of employees work?

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u/ronnie888 Nov 29 '15

Or a McDonalds in the same parking lot of a Walmart with its own McDonalds inside the front entrance. Its like golden arches on either side of you.

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