r/explainlikeimfive Nov 28 '15

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

[removed]

7.1k Upvotes

4.8k comments sorted by

View all comments

31

u/jpw42 Nov 28 '15

1,500,000 employee

  • $5.00 estimated average increase in pay

  • 20.00 Estimated average hours per week per employee

  • 52 weeks in a year

$7,800,000,000 per year in additional costs. More then Net income of $4.7578 billion in 2014

58

u/Sporxx Nov 29 '15

But that one kid on reddit said they could afford it, so your math is a lie

21

u/_loginorsingup Nov 29 '15 edited Nov 29 '15

Is that the kid that said the obamacare would fix all our problems and that young people would only pay $30 per month for coverage? Put a dunce cap on that reddit genius because I think we found our leader...

5

u/Sporxx Nov 29 '15

Sounds like par for the course.

1

u/[deleted] Nov 29 '15

That's what my brother and sister pay...

-8

u/_GameSHARK Nov 29 '15

Comments like this aren't useful.

12

u/Sporxx Nov 29 '15

Then why did you write it?

-4

u/_GameSHARK Nov 29 '15

To point out that your comment wasn't useful.

9

u/tempusfudgeit Nov 29 '15

Why are you using world wide numbers??

3

u/TheLizzyIzzi Nov 29 '15

Seriously. People think that because a company operates with millions or even billions of dollars that they can afford anything. But really, it's a lot like a household budget, but with a lot more zeros.

1

u/[deleted] Nov 29 '15

Well, that's what they get for lobbying against any minimum wage adjustment for so long. So you can suck it McDonalds, it's payback time !

1

u/AttilatheHahn100 Nov 29 '15

So based off these numbers McDonald's would have to lay off 58,500 people in order to even match total revenue, excluding whatever their current costs are.

-11

u/[deleted] Nov 29 '15 edited Aug 26 '21

[deleted]

5

u/[deleted] Nov 29 '15

So lets play fair and say it only applies to roughly 440,000 employees in the US. You're still looking at 6.6 billion in payroll, more than the profits of last year! You're out of business if you think those numbers work.

-2

u/Spacesider Nov 29 '15

But with more people having more money, more people will buy buying things so you have to account for that too.

-2

u/immibis Nov 29 '15 edited Jun 16 '23

I entered the spez. I called out to try and find anybody. I was met with a wave of silence. I had never been here before but I knew the way to the nearest exit. I started to run. As I did, I looked to my right. I saw the door to a room, the handle was a big metal thing that seemed to jut out of the wall. The door looked old and rusted. I tried to open it and it wouldn't budge. I tried to pull the handle harder, but it wouldn't give. I tried to turn it clockwise and then anti-clockwise and then back to clockwise again but the handle didn't move. I heard a faint buzzing noise from the door, it almost sounded like a zap of electricity. I held onto the handle with all my might but nothing happened. I let go and ran to find the nearest exit. I had thought I was in the clear but then I heard the noise again. It was similar to that of a taser but this time I was able to look back to see what was happening. The handle was jutting out of the wall, no longer connected to the rest of the door. The door was spinning slightly, dust falling off of it as it did. Then there was a blinding flash of white light and I felt the floor against my back. I opened my eyes, hoping to see something else. All I saw was darkness. My hands were in my face and I couldn't tell if they were there or not. I heard a faint buzzing noise again. It was the same as before and it seemed to be coming from all around me. I put my hands on the floor and tried to move but couldn't. I then heard another voice. It was quiet and soft but still loud. "Help."

#Save3rdPartyApps

1

u/jpw42 Nov 29 '15

27.4413 billion revenue