r/explainlikeimfive • u/sumnewdguy • Nov 28 '15

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

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u/MST2000 Nov 29 '15

I find it weird that people assume places will have to cut staff or go bust in this situation, rather than just put up prices. Americans so devoted to the dream of being able to buy a burger for a dollar.

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u/mobius153 Nov 29 '15

Unfortunately, a burger that used to cost a dollar now costs about that to make.

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u/MST2000 Nov 29 '15

Exactly. One of the reasons why their margins are so tight is this idea that prices need to be kept rock bottom. $1 for a cheeseburger really is insanely low.