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Given that we are outside observers, is it possible that they know something we don't? What might be some charitable explanations for why they don't raise price

• pempem 5y ago
  Restaurants that are not franchises have a 50% failure rate. Margins are intensely tight and the largest cost is labor, not food, spoilage, advertising, interior design, or whatever else. The central government and state government take limited to no responsibility for healthcare, child care, retirement, sick leave, pto etc. The central justice system has agreed that corporations have a duty to their stakeholders above their business and so growth is paramount. As a result, restaurants, esp independent ones, struggle to find ways to make ends meet and corporations (aka McDonalds) see no incentive to raise wages. The easiest and most obvious example of this playing out is imo that McDonalds pays labor more elsewhere than in the US.
  • chillwaves 5y ago
    https://www.restaurantbusinessonline.com/financing/mcdonalds-expects-pay-15-hour-company-restaurants-2024 https://www.restaurantbusinessonline.com/financing/mcdonalds...
    • pempem 5y ago
      Exactly! Thanks for sharing this. Currently the demand for higher wages is suddenly slightly more weighted towards the employee and yet McDonalds can pull out a three year timeline to get to $15 an hour, by which time inflation will make the increase insufficient
      • chillwaves 5y ago
        It's weird how evidence opposite to the point you are making actually supports your point? Whatever.