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I look forward to spending $14 on a Big Mac in Los Angeles in 2020.
by MrZongle2 11y ago
I look forward to spending $14 on a Big Mac in Los Angeles in 2020.
- crdoconnor 11y agoDidn't happen in Australia.
- OrwellianChild 11y agoLook, here's the basic calculation... Fast food wages are about 26.5% of cost, including 3.3% profit. [1] I inflated wages to $15 from L.A.'s current $9. I maintained 3.3% profit. Old Wage New Wage Wage Rate $9.00 $15.00 Wage 26.5% 37.3% Other Expense 70.2% 59.4% Profit 3.3% 3.3% 100.0% 100.0% Cost Increase 18.3% Old Big Mac Meal [2] $7.00 New Big Mac Meal $8.28 We'll live. [1] http://www.heritage.org/research/reports/2014/09/higher-fast-food-wages-higher-fast-food-prices http://www.heritage.org/research/reports/2014/09/higher-fast... [2] http://www.expatistan.com/price/big-mac/los-angeles http://www.expatistan.com/price/big-mac/los-angeles
- MrZongle2 11y ago+1 for sources and data, but keep in mind that the minimum rate hike doesn't fully rise to $15 until 2020. If this were happen immediately, then I'd probably concede your point. But we've got a while between now and then, and I think both inflation and the rising cost of beef will play a role. And who knows if automation will play a part? I bet that $8.28 for a Big Mac meal in 2020 will seem like a good deal.