Re:Employee happiness and business success are linked
by Qwertystop on Wednesday July 31, 2019 @09:40AM
(#20574323)
Worker wages could go up without increasing the cost of a burger (or other food item), it would just mean the owners make less money per sale. If the decreased stress leads to Burger King workers being more productive (and/or more pleasant to customers), that could mean more sales and more money for everyone involved.
Re:Employee happiness and business success are linked
by lotsofpulp on Wednesday July 31, 2019 @11:34AM
(#20575237)
Restaurants are notoriously low margin businesses, I doubt there’s much room to move up in wages, which is also their greatest cost.
Re:Employee happiness and business success are linked
by Qwertystop on Wednesday July 31, 2019 @04:50PM
(#20578399)
"Low margin" is relative. If the owner is taking home more money than the employees, there's room to shift things. I would bet quite a lot that most Burger Kings are in that position.
Re:Employee happiness and business success are linked
by lotsofpulp on Wednesday July 31, 2019 @05:30PM
(#20578777)
Profit margin is the amount left for the owner after all expenses are paid. Googling shows restaurants in general have single digit profit margins, so there isn’t much room for pay increases, especially if the owner wants to save for capital improvements like renovations, equipment, or new restaurants.
Re:Employee happiness and business success are linked
by Qwertystop on Friday August 02, 2019 @10:03AM
(#20592975)
"Single digit profit margins" is in terms of percentages. I'm talking absolutes: However low the profit margin is as a percentage, as long as it's positive and the owner makes more than enough to live on, it could be made lower by a pay increase.
It would not benefit Burger King as its clientele’s main goal is purchasing at the lowest price and they will happily go to McDonalds if prices went up. Not all businesses have the luxury of selling to people willing to spend more than rock bottom, and you can see that in most cities, only one or two areas where the upper middle class live will have the business that pay more than the minimum.