(Yesterday 07:14 AM)Redwingtom Wrote:  

(11-04-2026 03:36 PM)JRsec Wrote:  ...the raises in the minimum wage which have more to do with 6 and 7 dollar hamburgers than the cost of ground beef..

I don't think the data supports your conclusion. Have you seen a study that bolsters this, and if so, can you please share it? I'd like to read it. Thanks.

Labor makes up about a third of production costs related to fast food---about the same as ingredients. So increasing the minimum wage from $7.25 to $25 is going to more than triple that third of production costs---which means the labor cost increase by itself would basically require doubling the cost of every food item in order to maintain the same dollar profit (and since the dollar value of the profit is the same---but the cost of each item is higher, the same dollar profit would yield a lower overall profit margin). Furthermore---given the fact that the law of supply and demand has not been repealed---at higher prices---fewer food items are being sold---thus the overall profit is likely down despite sales posting the same or even higher dollar amounts (simply because every food item now costs roughly double).