State and City minimum wages increases forces menu price increases equating to GS sales increases with cash flow decreases.This will transition to a artifical inflationary cycle tied to CPI, causing a vicious cycle of cost / wage increases.. that will leave many longing for the days of the old inflationary indexs.
So many think that increasing wages by law is simply all there is to it and that the only cost increase is to the labor line. A legal wage increase impacts everyone like suppliers, outside service vendors, on and on. So, along with labor increases there are increases in inventory, utilities, outside services, ect. This spells disaster for many many small Mom & Pop businesses and they will get hit the hardest. Many will close and their customers will have nowhere to go but to the larger chains that can more easily withstand the wage increases. Forcing wage increases for political reasons is foolish.
A recent survey by Crestline focused on finding the most memorable mascots in America. MediaPost notes that Starbucks’ mermaid came in at the number one spot. Over 95 percent of the survey participants correctly identified the mermaid as being associated with the coffee giant. The survey also found that three out of the top five most memorable mascots are connected to big retail chains. The other two being KFC’s Colonel and McDonald’s Ronald. AND THE MORONS RUNNING MCD HAVE DUMPED RONALD !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
We all know MCD is one trick pony when it comes to capturing or losing GCs : price. Don’t drink the GC kool aid this planning season folks. Hopefully, with the NOA backing the NFLA, we will get a fair approach for 2020. 2018 was a complete cash flow disaster. Yes, our cash flow is up for 2019, but don’t let the agencies and Corp use that as leverage to force deep discounts on us. These current cash flow numbers are making up for the losses of 2018. The field recaps should look at 2 year numbers instead of year over year. Let the switchers go back to their refrigerators. No more unprofitable transactions for the benefit of Wall Street and Corp.
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