4 ms·
The title is a bit more conclusive than the article content. The author does a reasonable job covering the many indicators and trends surrounding fast food empl
by tonymet 2y ago
The title is a bit more conclusive than the article content. The author does a reasonable job covering the many indicators and trends surrounding fast food employment (seasonality, for example), and the short term results.
It's too early and too narrow an observation to draw conclusions. The article is better summarized as "minimum wage doesn't lead to the short term drop in employment and exploding inflation as expected".
Companies can shift around inventory, hiring, funds and more to address labor inflation in the short term. we won't see the real consequences of this policy for a year or two until the industry runs out of other tools.
Comparing In n Out (high wages, low marketing costs) to McDonalds/Carls/Burger King etc (low wages, high marketing & product development costs) -- companies can deliver a better service at a low price point if they are managed well.
I don't expect minimum wage to turn McDonalds into In n Out though.