Comment on McDonald's criticizes US restaurant industry for uneven wage policies
jacksilver@lemmy.world 15 hours agoIf they can’t pay minimum wage then they weren’t a functioning business to begin with. Tipped employees aren’t just paid $2/hour, they are still legally required to make minimum wage. If the tips don’t bring them up to minimum wage the restaurant has to cover the difference.
nixon@sh.itjust.works 11 hours ago
Yes, I know this, though a lot of businesses don’t actually do that.
That’s not my point though, limiting your competition by raising expenses to a higher level for smaller businesses would help McDonalds. There isn’t much hope for him to get the minimum wage lowered to make it “fair”, what CEO of such a public company would want to make that stand. By pointing out the unfairness would be to make it more expensive for his competition that don’t have to play by the same rules would help McDonald’s by hurting the local Mom and Pop or smaller restaurant chains. by hurting his competition. He gets to appear to take the high road by pointing out others should be held to the same higher standards and do the right thing. McDonald’s is already making it work at the higher wage because of how big they are, but their competition for food options probably won’t be able to do the same.
This is similar to how WalMart, Home Depot and etc expanded back in the day. Pay more, lower operating costs per sqft of retail space and less expensive prices than the mom and pops. This runs the smaller competition out of business because they can’t keep up and now WalMart/Home Depot or whatever has a much bigger piece of the local market as there are few options for consumers to spend their money with.
Mcdonald’s has gotten much more expensive in the last several years while also losing customers but he can’t lower expenses so he is trying to raise the operating costs for everyone else since he knows McDonald’s can survive for longer at the higher expense then almost anyone else.
ozoned@piefed.social 6 hours ago
Excellent points. Thank you for sharing! :-)
jacksilver@lemmy.world 6 hours ago
I understand you’re point, what I was calling out is that what McDonald’s suggests technically shouldn’t be a new burden on restaurants, but you’re probably right that it would be because how broken tipping is in America.
Also, this approach is actually the opposite of what Walmart did to expand. Walmart used its large size to force better wholesale deals and/or operate at a loss to undercut prices that mom and pop stores couldn’t compete with. Walmart is known for cheaper prices than the competition.
McDonald’s approach is more like regulatory capture. Once youre a big player you try to get more burdensome laws passed that make it harder for new competition and/or smaller businesses to thrive. Currently we’re seeing similar things in the online space with things like age verification laws.