Who thinks this will hurt MCD over the long run? Bye Bye dollar menu, the one time a month I go to MCD I stick to the $1. I don't think I would visit them but maybe 4 times a year if prices increased. Thoughts?
view this video on minimum wage, earning $8.25/h after 22 years of service is just not right http://www.bloomberg.com/video/video-portraits-life-at-minimum-wage-PbgnkkEsQqWpRLzoIDFbkg.html
Wage increase = increase in MCD costs = less profits for MCD. Raising prices to account for higher employee wage costs does not increase profits. In California minimum wage will go up to $9 in 2014 then jump to $10 in 2015. Some workers will lose their jobs for MCD to minimize costs. I rarely eat at MCD, BK, Jack in the Box or Wendys and never eat at Carls (worst food of all). I eat several times a week at In and Out so my wife can do her social events. My wife does all the cooking the rest of the time (she is an excellent cook, enjoys cooking and is very careful and clean and meticulous when preparing food). With her I eat healthy..
Tuesday Nights at Del Taco is Taco Night. It cost $2.18 for 6 Tacos. I'd rather buy 6 delicious Tacos at Del Taco for $2.18 than pay $2.00 for a McDonalds heat lamp burger that isn't even 100% beef. These Mcdonalds burgers are miserly. You get a few grains of union, some ketchup and thats it. People buying McDonalds heatlamp $1 burgers are getting ripped off. BK uses actual 100% beef and slices of tomatoes and onions. Scroogelike McDonalds puts ketchup and a few sea salt size onion bits on some burger consisting of soybean, horse or donkey meat and maybe 5% beef. There are alot of alternatives to the joke they call a burger at McDonalds. If I wanted a lousy McDonalds burger, I could goto my local AM PM minimart and buy two the same kind of burgers as McDonalds for the price of one croppy McDonalds burger.
I can buy a delicious Eating Right meal at Vons for $1.79 with my Vons card and heat it up in the microwave and it is healthier and tasts better than the horse meat mixed with soy mixed with beef burgers that are then sitting under a heat lamp for severals hours before it is served at McDonalds. Heck I could buy two heat lamp burgers at AM PM minimarts that taste the same as McDonalds dollar menu burgers except I get two at AM PM for the price of one at McDonalds
Why would you pay $2 for items when you can eat better at In and Out Burger who has better food period! Minimum wage increases will hurt MCD because only really poor people will eat there.
Surely profit margins will be squeezed and US franchisees will suffer. But I guess rivals like Burger King and Wendy's will be affected more given their lower margins and their more US focused business operations.