4 ms·

Attempting some quick math: Avg hours per year: 1560h (30h * 52 weeks), delta avg +$4 per hour 500,000 * US$4 * 1560h = US$3,120,000,000 net increase. Gross

Attempting some quick math: Avg hours per year: 1560h (30h * 52 weeks), delta avg +$4 per hour 500,000 * US$4 * 1560h = US$3,120,000,000 net increase. Gross company + franchise operating expenses were $2,706,000,000 in 2023 [1]. 115 Big Macs sold / day in California / restaurant [2] (45 restaurants?). About 1250 restaurants in CA. Big Mac about $5.19 * 115BM/d * 1250r * 365d = $272,312,500 per year revenue for Big Macs. So... $60 Big Mac? (corrected, see below) [1] https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/Exhibit%2099.1%20-%20Q4-23.pdf https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/p... [2] https://goldenstatemcd.com/ https://goldenstatemcd.com/

maxerickson 3y ago
So you think they make less than $4 an hour now then? That is the only way your estimate makes any sense.
- adamredwoods 3y ago
  $4 avg increase per worker
  - rottingchris 3y ago
    What are you even calculating? You took 500,000 workers from across the entire state and then picked a single company's expenses. The old wages for those 500,000 people at $16/h and your 1560h/y estimate would already be over $12bn.
dessimus 3y ago
You have 500,000 employees working at 1250 McD, so an average of 400 actively employed workers per McD location? I thought no one wanted to work anymore?!
- adamredwoods 3y ago
  Thanks for the correction! I read that poorly: >> The new rate applies to restaurant chains with more than 60 nationwide locations. So just with McDonalds, about 70,000 employees, but this includes managers [1]. [1] https://corporate.mcdonalds.com/corpmcd/our-stories/article/mcdonalds-billion-dollar-impact-california.html https://corporate.mcdonalds.com/corpmcd/our-stories/article/... So net operations increase = 70,000w * US$4/h * 1560h/w = US$436,800,000 Which means a Big Mac, if the price absorbed the wage increase alone would need to go up net approximately $8.33. $8.33 * 115BM/d * 1250r * 365d = US$437,064,687 $8.33 + $5.19 = $13.52 for a Big Mac (again, prices could be spread more evenly).

maxerickson 3y ago

So you think they make less than $4 an hour now then? That is the only way your estimate makes any sense.

adamredwoods 3y ago
$4 avg increase per worker
- rottingchris 3y ago
  What are you even calculating? You took 500,000 workers from across the entire state and then picked a single company's expenses. The old wages for those 500,000 people at $16/h and your 1560h/y estimate would already be over $12bn.

dessimus 3y ago

You have 500,000 employees working at 1250 McD, so an average of 400 actively employed workers per McD location? I thought no one wanted to work anymore?!

adamredwoods 3y ago
Thanks for the correction! I read that poorly: >> The new rate applies to restaurant chains with more than 60 nationwide locations. So just with McDonalds, about 70,000 employees, but this includes managers [1]. [1] https://corporate.mcdonalds.com/corpmcd/our-stories/article/mcdonalds-billion-dollar-impact-california.html https://corporate.mcdonalds.com/corpmcd/our-stories/article/... So net operations increase = 70,000w * US$4/h * 1560h/w = US$436,800,000 Which means a Big Mac, if the price absorbed the wage increase alone would need to go up net approximately $8.33. $8.33 * 115BM/d * 1250r * 365d = US$437,064,687 $8.33 + $5.19 = $13.52 for a Big Mac (again, prices could be spread more evenly).