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Re: NY State's $15 fast food min wage

Posted by Allan on Tue Jul 28 11:21:17 2015, in response to Re: NY State's $15 fast food min wage, posted by Charles G on Tue Jul 28 10:14:55 2015.

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"Because fast food workers are paid by big evil profit-seeking corporations."

Nothing could be so far from the truth. The only time the fast food workers get paid by the corporation is where the corporation directly owns the restaurant.

The majority of McD, BKs, Wendy's etc are franchised. That means the franchisee pays the workers from his profits. The franchisee has more than likely already taken a 2nd or 3rd mortgage on his home to pay the franchise fee (usually $200,000 to $300,000 or more) to the corporation. Then he has to pay rent on the location, electricity, gas, possibly real estate taxes (depends on the lease), buy supplies/raw food as well as underpay his workers.

Any change in the restaurant (new signs etc) comes out of the franchisees pocket not the corporations (ever wonder why some McDs look newer on the outside/inside than others?).

[Alright - in Manhattan you have Reise Restaurants who have the franchise on most of the chain eating places in mid-town Manhattan. They underpay, overcharge and don't participate in rewards programs offered by some of the chains. But they are more of an exception in NYC].




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