February 25, 2015

Are higher wages good or bad for McDonald's?




Are higher wages good or bad for McDonald's? - Crain's
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3 comments:

Anonymous said...

Balderdash higher wages will only erode operator profits . Yet they WILL boost McD income off the top line since operators will be forced to raise prices. McD wins 'Operators lose.

Anonymous said...

Further, if menu prices have to be raised to accommodate mandatory wage hikes, we will erode our heavy user base which is value driven. An infinite regress. It would also push us into more mechanization which would have the effect of significantly reducing employees as a consequence.

Anonymous said...

It will force a complete erosion of the current service platform, like in France.

Kiosk and mobile order will replace the human interaction and take place of the human cost.

So its not "higher" wages, but a transference of service wages to other portions of the restaurant.

While this may satisfy the business "brain", it will go against the "heart" and "soul" of the business - which has been lost with the massive turnover in senior leadership.

McDonald's is failing due to its leadership losing sight of Ray's philosophies, which made it famous - "WE NOT JUST ON YOUR CORNER, WE ARE IN YOUR CORNER".