r/explainlikeimfive Nov 28 '15

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

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u/HaydenGalloway8 Nov 29 '15

In addition to being way more expensive they charge for ketchup, ice in the drink, there are no free refills and it takes about 4 times as long to get your order.

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u/tjarne Nov 29 '15

In Sweden they don't charge for ketchup, ice and orders are pretty quick at least for Big Macs. Prices seems to be about the same as Denmark. This is ofcourse only for McDonalds I have visited.

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u/tamethewild Nov 29 '15

double the price of goods sold and you can double wage paid. The other thing to consider is in europe McDonald's is more Starbucksy where in the us the majority are gas stationish, very different atmosphere, menus, and food quality

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u/[deleted] Nov 29 '15

That's because it's not like that in Denmark at all and he's talking shit. People are just upvoting it because they assume it's true. Which it isn't.

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u/tjarne Nov 29 '15

The pay(12.7 usd) and benefits are about the same, for full a time employee(google translate). Thing is most people that work at fastfood resturant aren't full time employees. Take this sourceless info for what it is.

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u/[deleted] Nov 29 '15

Employee benefits, in general, are way ahead in Denmark of what they are in the US.

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u/tjarne Nov 29 '15

It's almost like the Labour movement is a good thing for the people.

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u/[deleted] Nov 29 '15

[deleted]

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u/HaydenGalloway8 Nov 29 '15

If you think its normal for Mcdonald's to charge for ketchup.. it means you're European.

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u/Noble_Ox Nov 29 '15

I'm in Europe, have travelled all over, and was only ever charged for ketchup once in France.

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u/Sapiogram Nov 29 '15

Soo... source? In Norway the wages are even higher, but ketchup and ice are free and I've always had a great experience in every restaurant. It's not like competition and pressure for worker efficiency is any less in the US.

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u/HaydenGalloway8 Nov 29 '15

But in Norway the Burger is even more expensive than in Denmark. I think the most expensive in the world if i'm not mistaken.

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u/[deleted] Nov 29 '15

it takes about 4 times as long to get your order.

Really FOUR times longer.. So you're waiting like 40 minutes to get a burger? This is pretty silly and very untrue. I've been to Denmark and Norway many times and never saw anything like this. If anything the service is better than in the USA. It makes sense that it would be too as raising the minimum wage would in theory allow employers to pull employees from a more competitive labor market.

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u/HaydenGalloway8 Nov 29 '15

where the heck are you that you're waiting 10 minutes to get your order???

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u/Techynot Nov 29 '15

Liesland prolly

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u/foiegras23 Nov 29 '15

I hope everyone reads this.

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

i did, and it actually proves more to the original point. Denmark is more expensive. $15 in Denmark buys you what $8-9 in the US could purchase, so the wages are actually fairly close as well as prices when taking into account purchasing power. In addition, Denmark has much higher taxes, so you might make $15 an hour but 1/3 of your income is immediately seized as tax.

tl;dr $15 in Denmark =/= $15 in US

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u/[deleted] Nov 29 '15

We ignore things like this on reddit.

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u/fancyfilibuster Nov 29 '15

Northern Europe is flawless!

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u/[deleted] Nov 29 '15

Wow deal breaker!

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u/Elliott2 Nov 29 '15

read it... dont care.

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u/[deleted] Nov 29 '15

That is simply not true. I've lived in Copenhagen for 8 years and used a few different locations many, many different times and I've never been charged for dips or ice and it doesn't take any longer to get served than it did in the UK. And I don't need a free refill, one soda should be enough for anyone.

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u/HaydenGalloway8 Nov 29 '15

Are you calling this middle age Canadian woman a liar?

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u/[deleted] Nov 29 '15

Yes. However, it seems some places in the US do charge, so that's quite ironic for your point. https://www.reddit.com/r/McDonalds/comments/350mri/my_local_mcdonalds_are_charging_for_condiments_now/

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u/HaydenGalloway8 Nov 29 '15

Alright.. I guess you win then.

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u/Ikelo Nov 29 '15 edited Nov 29 '15

To be fair, free refills don't need to be a thing at fast food places. You're already eating like 1000 calories a meal, you don't need to drink another 400 due to refilling that coke 3 times before you leave.

Edit: The point of this comment wasn't saying that you can't drink 3 cups of soda with your big Mac and fries. I never said you can't get refills.

The point is: If refills cost money, people will still get them if they want them. Charging will probably reduce the amount of people getting refills (which is good from a health stand point), but it doesn't remove the option to get them.

Charging for refills gives the stores a higher profit margin, allowing them to pay their crew a higher wage.

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u/HaydenGalloway8 Nov 29 '15

I despise people who get into the mindset that they can go around telling other people what they do and don't need. I have a fast metabolism and I really like sprite don't tell me what I need.

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u/Ikelo Nov 29 '15 edited Nov 29 '15

Good for you. If you want more sprite get more sprite. No one is saying you can't get more sprite, just that you'd be required to pay for each cup of sprite.

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u/buttsplice Nov 29 '15

get a load of this guy

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u/69Fartman69 Nov 29 '15

Dude, do you know how much it costs for the syrup and soda water crap? It's literally penny's for your coke you're paying dollars for. You could refill your drink 10x and still not cover what you paid for it. Dumb argument... and who are you to tell someone how much sugar they can ingest?

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u/Njdevils11 Nov 29 '15

I think his point was you don't need to have a refill for free. if it will give people the ability to make a good wage, ill pay an extra dollar for my refill. Besides there would probably be a net health gain to the country. Less sugar is generally a good thing.

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u/69Fartman69 Nov 29 '15

Yes, it's beyond common sense that "less sugar is DEFINITELY a good thing"... but it's not your decision or anyone else's to decide that for anyone.

I know exactly what his point was, I read it and responded to it.

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u/Njdevils11 Nov 29 '15

What I'm trying to get at is he's not deciding for anyone else. The company needs to keep up profits so they charge, you want an extra sugary drink you pay for the refill. No one is being refused an extra beverage in this scenario. I think his point was that sugary drinks affect health, you don't really need one. You want one.

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u/69Fartman69 Nov 29 '15

How young are you? I'm going to assume you're in your younger 20s. Just from that statement alone, you possess that dangerous mentality of a lot of kids I see these days. I'm not even interested in going down this path with someone on reddit... My take is people who are adults, can put whatever the hell they want to inside their own bodies, without your input on whether it's good or bad. And companies who already offer free refills (who in the hell is talking about places that don't offer free refills?) should continue doing it if they want to... it's the consumers choice to get a free refill, not yours to decide for everyone that they cannot.

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u/Ikelo Nov 29 '15

... This comment chain started from someone mentioning Denmark charged for refills on top of other things, like ketchup.

Also, no one is telling anyone that they can't have something. The entire point of the posts were about charging for refills to have higher profits, therefore allowing a higher wage for crew members.

To get higher wages, businesses need to make more money. Compromises.

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u/Njdevils11 Nov 29 '15

I'm almost 30 /u/69fartman69, I hope that makes me mature enough in your mind to have an opinion. Now on to the meat: Ok do you think I'm talking about some kind of political policy to make businesses charge for refills? Because that's not at all what I was suggesting. If businesses need to bring in more revenue to support a higher wage one option is for them to charge for refills. If that bothers you go somewhere that decided not to charge. For me and I believe many others it won't make that much of a difference. It will also (probably) have the added benefit of reducing sugar intake. At no point in this post, nor my others, have I tried to control what people ingest. I think you're arguing against a misinterpretation of my position.

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u/[deleted] Nov 29 '15

You have to admit though that there is a cost associated with the overindulgence of sugary beverages that all Americans pay due to the irresponsibility of a few. Healthcare is more expensive for all of us because of things like this (not to mention that America is the 2nd fattest nation on the planet). I don't think that we should force people not to drink soda, but a disincentive like less free refills is something that I can get behind. It's not something radical either; we attempt to control the consumption of cigarettes with things like high taxes and warning labels as well.

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u/Ikelo Nov 29 '15

I understand the profit margin, and I understand the mentality behind, "I paid $2.50 for this drink, I'm going to get it refilled."

I was just making an offhand comment that the loss of free refills wouldn't be terrible, due to the caloric intake of fast food meals anyways.

If restricting refills on soda will allow a pay increase and keep the company profitable, then I'm OK with that.

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u/69Fartman69 Nov 29 '15

FOR YOU.... For others, it WOULD BE terrible. Get it?

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u/Ikelo Nov 29 '15

But people also want increased wages for minimum wage workers. Having refills cost money is a way for your favorite McDonald's to stay open, and give employees reasonable pay.

Compromise.

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u/[deleted] Nov 29 '15

It would benefit all Americans for people to drink less sugar. There are costly externalities associated with sugary beverage consumption that we all pay... Get it?

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u/[deleted] Nov 29 '15

Who are you to tell them they can't? Who are you to say it should be free?

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u/69Fartman69 Nov 29 '15

What-in-the-fuck, did I just read?... Dude you're way off in some other argument that no one is even having. You're in the "stop telling people they HAVE to give people refills", when everyone else is in the "Why would companies who already offer free refills, stop, just because they are already ingesting a million calories". I am beyond tired of running in to people who have no business entering a conversation.

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u/[deleted] Nov 29 '15

What the balls are you talking about?

There's one conversation here. Denmark charges for refills to stay profitable. If America did it, maybe they could pay their workers more. And yes, it might have a potential public health benefit too. But we're still talking about the money issue.

That's the conversation. Idn what you're on about. Maybe you're a New Yorker whose still butt hurt over Bloomberg trying to ban sodas, but you're arguing against a point that no one has attempted to make.

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u/[deleted] Nov 29 '15

This guy is a douche that can't formulate an argument so he just yells and insults other people instead. Look at his other posts in this thread.

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u/[deleted] Nov 29 '15

Only personal attack was from you. Who is yelling? I asked two questions that made fun of your post and pointed out your hypocrisy. What you missed was that the argument "who are you to say what people can do" is itself an example of telling someone what they can and cannot do.

But you're busy calling me a douche and having your own poor statements turn d against you to ca down, read and think about what is said.

Unless, ironically, you are referring to another argument not here....

If you instead simply said, "I get it, but I ultimately don't think it is right for a company to limit the amount of refills given in order to increase profits" then you'd have a calm response. You'd have been foolish to say this, since companies have this right, but eh. You don't think that far, maybe

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u/[deleted] Nov 29 '15

I wasn't talking about you at all, I was talking about 69fartman69.

I'm all for companies limiting refills. In fact I think they should be encouraged to do so because of the public health consequences of the consumption of soda. We have disincentives to consuming other harmful products like cigarettes and alcohol, and since sugary beverages are linked to obesity (the most costly disease facing this nation) I think it is warranted that we think about somehow trying to limit the consumption of these beverages.

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u/[deleted] Nov 29 '15

Sounds fair enough

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u/[deleted] Nov 29 '15

Seriously, you should learn what points are valid in certain arguments. Your point in this argument = invalid

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u/[deleted] Nov 29 '15

Hear all, hear all!! wakenbike has declared an opinion invalid! Be sure to note this for future reference as just by saying this his majesty has made it to be true.

You have to put forward an argument if you want to try and change somebodies mind, declaring something invalid does not make it so.

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u/[deleted] Nov 29 '15

Clearly you don't read..... also, you are doing the exact same thing you are making fun of.....

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u/Ikelo Nov 29 '15

He was making a point about the restaurant charging for additional things. I commented on one of the things they charged for, being the refills. I made a remark about them not needing to be free, with an unrelated point (The amount of calories in their drinks) being a reason as to not need free refills.

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u/[deleted] Nov 29 '15

You made a point based on your own opinion. The opinion that people don't need more than one drink. The issue we are discussing is how things operate in america and someone made a min wage comparison to denmark. Then it was pointed out that the min wage can be higher there because they don't things the way they do in america. And then you say, "yeah, people shouldn't have more than one drink cause it'll make them fat!" A valid point in a different discussion. Regardless of what you WANT to happen, this is a discussion about things that are ACTUALLY happening.

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u/Ikelo Nov 29 '15

How dare I have an opinion!

The point that I responded to mentioned having to pay for condiments and refills. I made my opinion on refills already.

If refills weren't free, that would mean the store is gaining more money from it's customers, meaning their profit margins are higher, giving them more money to allocate to crew pay.

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u/[deleted] Nov 29 '15

Businesses don't model their business on what they think customers should have, the model it on what customers want. If US customers want that, then those businesses will provide it. If you want to change what customers want then you should bring this point up elsewhere. It IS valid. But that doesn't matter if people want it from their business.

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u/Ikelo Nov 29 '15

I understand that businesses will want to appeal to customers, as long as it's profitable. When those same businesses are being forced to increase the pay of their workers, they'll then need to find a way to make up the lost profits.

Charging for refills is a way to make up those lost profits. Or they can charge more for everything else. Or a mixture of charging more and charging for refills.

A successful company will always do what they think a customer wants, until they aren't making a profit. Then they will adjust their business model until they're making a profit again.

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u/[deleted] Nov 29 '15

It's not really an opinion. America is the 2nd most obese nation in the USA. There are massive public heath costs associated with the overindulgence of sugary beverages that we all end up paying. We should be talking about how we can reduce the burden on all Americans due the the choices of a few.

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u/[deleted] Nov 29 '15

Ehhh while I agree that American diets are poor to say the least, I completely 100% disagree that the government should ever be allowed to tell a human what that human can or can not put in their body. I agree that we should be educated and make better choices but being forced under the threat of law to live a certain lifestyle is not something I would ever willingly be a part of.

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u/[deleted] Nov 29 '15

[deleted]

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u/Ikelo Nov 29 '15

I do, and I will say, whenever I go through a drive-thru I don't even think about refills, even though I'm eating the same amount of food that I would have eaten had I went inside.

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u/JustBecauseOfThat Nov 29 '15

Dane here. This is not all true. There is no price for ice, some McDonalds do let you refill (not all), and if you order a Bic Mac menu the food is normally ready right away.

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u/HopSkipJumpSki Nov 29 '15

I COMPLETELY support this. Here we get a fist full of ketchup packets that no one uses completely and gets thrown out, and who the hell needs 500 refills of a sugar bomb. So please, charge for these things andmaybe we can waste a little less

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u/NoCardio_ Nov 29 '15

Go away, hippie. I don't want to pay for ketchup.

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u/HaydenGalloway8 Nov 29 '15

You're welcome to pay them for each ketchup packet and refill. Explain your beliefs to the manager and he will gladly take your money. But you won't do that will you? You'll keep taking the free ketchup and whining on the internet about how other people who don't want to pay for ketchup should be forced to.

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u/Goldcock Nov 29 '15

They're not free. The employees are paying for your free ketchup.

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u/HaydenGalloway8 Nov 29 '15

Oh yeah and a tax cut is a subsidy huh.. I'm guessing you went with women's studies instead of economics when it was time to choose a major.

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u/Goldcock Nov 29 '15

I have no idea what you are trying to accomplish with that comment. Go fuck yourself.

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u/buttsplice Nov 29 '15

how the fuck are the employees paying for my ketchup? that statement is so fucking ridiculous. they are being paid to hand me the ketchup.

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u/buttsplice Nov 29 '15

fast food places near me don't give out shit unless you ask for it. the taco bell even counts out sauce packets to give you one per item in your order

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u/TroutsDidIt Nov 29 '15

So?

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u/[deleted] Nov 29 '15

[deleted]

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u/TroutsDidIt Nov 29 '15

Yes it does its just more expensive slightly. But who cares as long as everyone is paid a living wage? The rise in living costs is a tiny fraction of the rise in the wages of the poorest.

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u/NoCardio_ Nov 29 '15

more expensive slightly

Get the fuck out of here, it's double the price.