McDonald's president who made $7.4 million last year says proposal to pay fast-food workers $22 an h

[Yo_Mama_Been_Loggin]

hour is 'costly and job-destroying'

The president of McDonald's USA threw shade at California lawmakers for passing a fast-food law that he said would make it "all but impossible to run small business restaurants" in the state, Joe Erlinger said in a January 25 open letter.

AB 257, dubbed the FAST Act, signed into law last year, could raise hourly restaurant wages to $22 an hour in the state. The open letter was published after the state approved a referendum backed by fast-food chains that would put the law up for a vote in November 2024. The law was previously set to be enforced on January 1. But until the vote, state officials can't implement the law.

A majority of McDonald's nearly 14,000 restaurants in the US are run by franchisees, with hundreds of stores operating in California. The open letter was titled, "California keeps looking for ways to raise prices, drive away more businesses and destroy growth through bad policy and bad politics."

In the letter, Erlanger noted that the company wasn't against increasing the minimum wage. "Let me be clear: we support legislation that leads to meaningful improvements in our communities, including responsible increases to the minimum wage. Our business does well when our employees and our communities do well," he said.

https://www.msn.com/en-us/money/companies/mcdonald-s-president-who-made-7-4-million-last-year-says-proposal-to-pay-fast-food-workers-22-an-hour-is-costly-and-job-destroying/ar-AA16Mc7D

[House of Roberts]

1. How are higher wages going to 'drive away businesses' in the restaurant sector?

People have to eat. They either cook their own food or they have to pay someone to cook it for them.

McD's is offering $15 an hour to start here in Huntsville, provided you're willing to work early or late shifts.

It's a lot cheaper to live here than most places in California.

[Mark.b2]

2. MCD is the 3rd largest holding in my portfolio, not including any shares that may be...

In mutual funds.

I try to go to a McDonald's at least once a week. The pay doesn't so much concern me like it did. I'm more concerned about the quality of the employee they are getting for higher wages.

It's not just McDonald's. I've experienced it at other fast food businesses. I've learned to check my order at the drive thru.

And it's not just fast food. Last week ar Salt Grass, my wife had to send her steak back twice to get it to medium well (overcooked I know!) A couple weeks ago, we got home from a nice dinner at Ruth's Chris (a middle of the pack high-end steak house). Unpacking the leftovers we brought home, our leftovers were accompanied with someone else's. I called them to let them know and she said they hadn't heard from anyone. And frankly, she didn't seem to give a shit.

It seems nowadays that so many customer-facing employees in retail and dining have busted "give-a-damns". And that's after most getting significant wage bumps with more in the offing.

Oh, just thought of another group that have seen raises with not much customer service improvement...airline ticket agents!

[Bluethroughu]

3. Here's a thought, cut the top executives' pay.

If they can pay in Europe, they can pay here.

Cut the franchise fees if the owners need help.

[progressoid]

4. McDonald's CEO says layoffs are coming

McDonald’s is planning to cut some of its corporate staff, CEO Chris Kempczinski said in a memo to employees Friday.

“We will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead,” Kempszinski said. “Certain initiatives will be de-prioritized or stopped altogether. This will help us move faster as an organization, while reducing our global costs and freeing up resources to invest in our growth.”

McDonald’s has been a star of the pandemic: People ordered more takeout from the company during the early days of Covid and sales have surged over the past year as inflation sent restaurant-goers looking for cheaper options.

But the company said it’s not resting on its laurels, the CEO said, outlining a plan to break down internal barriers, grow more innovative and reduce work that doesn’t align with the company’s priorities.

McDonald’s also plans to accelerate the pace of its restaurant openings to respond to increased demand. The company said it sees an opportunity for further growth in many of its major markets.

...https://www.cnn.com/2023/01/06/business/mcdonalds-layoffs/index.html

[Deuxcents]

5. These overpaid CEO's don't work half as hard as the front line employees

And yet they have the nerve to say 15$ an hour is job destroying? How much sense does that make?

[no_hypocrisy]

6. Mickie D's has already let go of many employees, replacing them with computer screen

kiosks. Surely that means the remaining humans can be paid $22 hourly with the money saved . . . . .

[Pete Ross Junior]

7. The wage earners work for the franchisees, not the CEO.

His pronouncement is aimed at keeping the franchisees in line, some of whom might be willing to pay such wages.
Certainly not to convince the workers.

Doesn't improve the moral caliber of the CEO, of course. The point is understanding why he said it, instead of just keeping his mouth shut.