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Worker wages could go up without increasing the cost of a burger (or other food item), it would just mean the owners make less money per sale. If the decreased
by Qwertystop 7y ago
Worker wages could go up without increasing the cost of a burger (or other food item), it would just mean the owners make less money per sale. If the decreased stress leads to Burger King workers being more productive (and/or more pleasant to customers), that could mean more sales and more money for everyone involved.
- lotsofpulp 7y agoRestaurants are notoriously low margin businesses, I doubt there’s much room to move up in wages, which is also their greatest cost.
- Qwertystop 7y ago"Low margin" is relative. If the owner is taking home more money than the employees, there's room to shift things. I would bet quite a lot that most Burger Kings are in that position.
- lotsofpulp 7y agoProfit margin is the amount left for the owner after all expenses are paid. Googling shows restaurants in general have single digit profit margins, so there isn’t much room for pay increases, especially if the owner wants to save for capital improvements like renovations, equipment, or new restaurants.
- Qwertystop 7y ago"Single digit profit margins" is in terms of percentages. I'm talking absolutes: However low the profit margin is as a percentage, as long as it's positive and the owner makes more than enough to live on, it could be made lower by a pay increase.