Subway founder says minimum wage will cause raise in prices

[Luddly Neddite]

Subway Founder Fred Deluca: Minimum Wage Increase 'Will Cause Franchisees To Raise Prices'

“Wages directly affect prices,” he said. “It will cause franchisees to raise prices. There’s no doubt about it.”

Well yeah cuz, we all know that prices are never raised except when minimum wage is increased. Prices go up. Prices of the crappy meat they put in their crappy sandwiches go up and they pay it because its a cost of doing business.

$16BILLION in revenue in 2010 but they don't want to pay a living wage? Reminds me of an article I read about the child labor, little girls who make Barbie dolls but don't earn enough to actually buy the doll they make.

 

[martybegan]

Subway Founder Fred Deluca: Minimum Wage Increase 'Will Cause Franchisees To Raise Prices'

“Wages directly affect prices,” he said. “It will cause franchisees to raise prices. There’s no doubt about it.”

Well yeah cuz, we all know that prices are never raised except when minimum wage is increased. Prices go up. Prices of the crappy meat they put in their crappy sandwiches go up and they pay it because its a cost of doing business.

$16BILLION in revenue in 2010 but they don't want to pay a living wage? Reminds me of an article I read about the child labor, little girls who make Barbie dolls but don't earn enough to actually buy the doll they make.

You do know that in businesses like this labor is usually one of your larger costs compared to materials, right? And the wage increase you are talking about is of a much larger scale than any material cost increase, right?

Also, if you have to make working at Subway for minimum wage your long term career choice, you made some bad bad choices.

 

[Trajan]

right, so when it gets the the point where a burger flipper can't buy their own product..let me know...

you'r attitude sux but you've been programmed so I get it...the 16Bn means exactly squat.....

fast food et al never ever was (nor was minimum wage) intended as a living wage, kind of like social security being called a pension....right I bet you do call it that too, thats why I won't be eating jack in the box $1 specials for dinner when I retire but you will......carry on.

 

[Luddly Neddite]

Its very expensive to hire and train new people - even in a fast food joint. There really is no such thing as an "unskilled" worker. In my own business, I learned that if I pay/treat my employees well, I got that investment back several times over. Part of the cost of doing business is paying your employees and, fast food is not the only business where your employees constitute a large percentage of your overhead.

Trajan, you shouldn't pretend to know something that you are actually completely ignorant about. As I have posted before, I am retired and, because I saved and invested, I live pretty well. I'm not wealthy but we're able to travel, own two pursue my interests and, as I posted yesterday, I just bought a new car.

I have often posted that Soc Sec is not enough to live on. My advice is to pay yourself 10% of your income. Treat it like any other bill that must be paid. Or, do whatever works for you but don't depend on Soc Sec.

You also should not depend on your employer because, as we've been seeing for quite some time now, many businesses are doing whatever they can to keep from paying earned pensions. (The first time I remember seeing this was in the 70s when J C Penney started firing long-time employees rather than pay them the pensions they had earned.)

 

[BillyV]

Subway Founder Fred Deluca: Minimum Wage Increase 'Will Cause Franchisees To Raise Prices'

“Wages directly affect prices,” he said. “It will cause franchisees to raise prices. There’s no doubt about it.”

Well yeah cuz, we all know that prices are never raised except when minimum wage is increased. Prices go up. Prices of the crappy meat they put in their crappy sandwiches go up and they pay it because its a cost of doing business.

$16BILLION in revenue in 2010 but they don't want to pay a living wage? Reminds me of an article I read about the child labor, little girls who make Barbie dolls but don't earn enough to actually buy the doll they make.

So then you're saying he's simply telling the truth, right? Increases in the price of inputs (wages, crappy meat, etc.) cause a rise in the price of outputs.

As far as wanting to pay a "living wage", it's not up to the business owner to decide that; it's really up to the customers. If they are willing to pay $7 for a $5 footlong, then the business owner will be happy to pay the difference in wages; if not, the business goes under. This isn't really complicated stuff.

 

[martybegan]

Its very expensive to hire and train new people - even in a fast food joint. There really is no such thing as an "unskilled" worker. In my own business, I learned that if I pay/treat my employees well, I got that investment back several times over. Part of the cost of doing business is paying your employees and, fast food is not the only business where your employees constitute a large percentage of your overhead.

Trajan, you shouldn't pretend to know something that you are actually completely ignorant about. As I have posted before, I am retired and, because I saved and invested, I live pretty well. I'm not wealthy but we're able to travel, own two pursue my interests and, as I posted yesterday, I just bought a new car.

I have often posted that Soc Sec is not enough to live on. My advice is to pay yourself 10% of your income. Treat it like any other bill that must be paid. Or, do whatever works for you but don't depend on Soc Sec.

You also should not depend on your employer because, as we've been seeing for quite some time now, many businesses are doing whatever they can to keep from paying earned pensions. (The first time I remember seeing this was in the 70s when J C Penney started firing long-time employees rather than pay them the pensions they had earned.)

Then run your business the way you see fit, and let someone else run thiers. If Subway's wages keep falling below the talent level required, they will go under, all on thier own.

Boosting minimum wage arbitrarily leads to less jobs, as increased costs make the business unprofitable.

 

[Trajan]

Its very expensive to hire and train new people - even in a fast food joint. There really is no such thing as an "unskilled" worker. In my own business, I learned that if I pay/treat my employees well, I got that investment back several times over. Part of the cost of doing business is paying your employees and, fast food is not the only business where your employees constitute a large percentage of your overhead.

Trajan, you shouldn't pretend to know something that you are actually completely ignorant about. As I have posted before, I am retired and, because I saved and invested, I live pretty well. I'm not wealthy but we're able to travel, own two pursue my interests and, as I posted yesterday, I just bought a new car.

I have often posted that Soc Sec is not enough to live on. My advice is to pay yourself 10% of your income. Treat it like any other bill that must be paid. Or, do whatever works for you but don't depend on Soc Sec.

You also should not depend on your employer because, as we've been seeing for quite some time now, many businesses are doing whatever they can to keep from paying earned pensions. (The first time I remember seeing this was in the 70s when J C Penney started firing long-time employees rather than pay them the pensions they had earned.)

uh huh.

then, based on your OP, past posts etc., now this above? I can only conclude that you may require treatment , the DSM terms/ pathologies suggest ( my interpretation of course),....uhmmm, Risperdal?

 

[Luddly Neddite]

Its very expensive to hire and train new people - even in a fast food joint. There really is no such thing as an "unskilled" worker. In my own business, I learned that if I pay/treat my employees well, I got that investment back several times over. Part of the cost of doing business is paying your employees and, fast food is not the only business where your employees constitute a large percentage of your overhead.

Trajan, you shouldn't pretend to know something that you are actually completely ignorant about. As I have posted before, I am retired and, because I saved and invested, I live pretty well. I'm not wealthy but we're able to travel, own two pursue my interests and, as I posted yesterday, I just bought a new car.

I have often posted that Soc Sec is not enough to live on. My advice is to pay yourself 10% of your income. Treat it like any other bill that must be paid. Or, do whatever works for you but don't depend on Soc Sec.

You also should not depend on your employer because, as we've been seeing for quite some time now, many businesses are doing whatever they can to keep from paying earned pensions. (The first time I remember seeing this was in the 70s when J C Penney started firing long-time employees rather than pay them the pensions they had earned.)

uh huh.

then, based on your OP, past posts etc., now this above? I can only conclude that you may require treatment , the DSM terms/ pathologies suggest ( my interpretation of course),....uhmmm, Risperdal?

The two posts above yours both made good, valid points. Yours is just childish name calling and especially specious because you are saying (lying) you are qualified to diagnose and treat mental illness.

You were wrong. Why not be an adult and just own up to that?

**shrug**

Or not.

 

[Trajan]

Its very expensive to hire and train new people - even in a fast food joint. There really is no such thing as an "unskilled" worker. In my own business, I learned that if I pay/treat my employees well, I got that investment back several times over. Part of the cost of doing business is paying your employees and, fast food is not the only business where your employees constitute a large percentage of your overhead.

Trajan, you shouldn't pretend to know something that you are actually completely ignorant about. As I have posted before, I am retired and, because I saved and invested, I live pretty well. I'm not wealthy but we're able to travel, own two pursue my interests and, as I posted yesterday, I just bought a new car.

I have often posted that Soc Sec is not enough to live on. My advice is to pay yourself 10% of your income. Treat it like any other bill that must be paid. Or, do whatever works for you but don't depend on Soc Sec.

You also should not depend on your employer because, as we've been seeing for quite some time now, many businesses are doing whatever they can to keep from paying earned pensions. (The first time I remember seeing this was in the 70s when J C Penney started firing long-time employees rather than pay them the pensions they had earned.)

uh huh.

then, based on your OP, past posts etc., now this above? I can only conclude that you may require treatment , the DSM terms/ pathologies suggest ( my interpretation of course),....uhmmm, Risperdal?

The two posts above yours both made good, valid points. Yours is just childish name calling and especially specious because you are saying (lying) you are qualified to diagnose and treat mental illness.

You were wrong. Why not be an adult and just own up to that?

**shrug**

Or not.

I never said I was qualified Dudley. There is nothing to be "Wrong" or right about, except that you speak with forked tongue, or at the very least deliver mixed messages.

I am just not sure which luddly we are speaking with today, your points seem to change scope and emphasis when they need to depending how you can grind your axe.....I guess it depends on the topic.

 

[SteadyMercury]

Its very expensive to hire and train new people - even in a fast food joint.

Like many others I worked fast food as a young man, I submit you can have a new fast food worker productive in one day, and as efficient as most others on the team in a week. At those wages it is not "very expensive" to train new people.

I have often posted that Soc Sec is not enough to live on.

Then you have posted incorrect information, as it depends how one has managed their finances up to retirement, where they live, what lifestyle they are comfortable with,and their income history.

 

[rightwinger]

So....how is that increase in minimum wage going to bring Subway to its knees?

An increase from $7.25 to $9.00 is $1.75 an hour
Subway is open 12 hours a day and has about 5 employees

60 X $1.75 is $105 a day

 

[TNHarley]

Of course it will. Thats why I do not understand them wanting to do this? Majority of minimum wage earners are part-time and high school students. Why does the poor and middle class have to eat price increases in a time like this? The effect, IMO, will be the opposite of what they are wanting.

 

[martybegan]

So....how is that increase in minimum wage going to bring Subway to its knees?

An increase from $7.25 to $9.00 is $1.75 an hour
Subway is open 12 hours a day and has about 5 employees

60 X $1.75 is $105 a day

And what is the daily profit margin on a subway?

Also add in the increase in FICA the company has to pay for, and unemployment insurance by state, and medicare.

Remember also, minimum wage increases make other groups hanker for increases, as they can point to the minimum wage earner and say "I used to make X more than them, and now I make Y more than them, I want X again"

This increases ALL costs. Inflation occurs, and the person who got the minimum wage increase loses any buying power they had.

And the cycle repeats. Didnt you take basic economics?

 

[TNHarley]

So....how is that increase in minimum wage going to bring Subway to its knees?

An increase from $7.25 to $9.00 is $1.75 an hour
Subway is open 12 hours a day and has about 5 employees

60 X $1.75 is $105 a day

How many sandwhiches would they have to seel to make up for that? Look at a footlong. Probably have a dollar or so in costs (That is a guess. When I worked at pizza hut when I was younger they had almost 3 dollars in a large supreme pizza) So on a 5 dollar footlong that would be around 4 dollars in profit. That is another 27 sandwhiches. That is a lot of sandwhiches considering they probably are less than a million a year store. Of course, depending on location

 

[martybegan]

So....how is that increase in minimum wage going to bring Subway to its knees?

An increase from $7.25 to $9.00 is $1.75 an hour
Subway is open 12 hours a day and has about 5 employees

60 X $1.75 is $105 a day

How many sandwhiches would they have to seel to make up for that? Look at a footlong. Probably have a dollar or so in costs (That is a guess. When I worked at pizza hut when I was younger they had almost 3 dollars in a large supreme pizza) So on a 5 dollar footlong that would be around 4 dollars in profit. That is another 27 sandwhiches. That is a lot of sandwhiches considering they probably are less than a million a year store. Of course, depending on location

$4 of revenue over materials. then you have to add labor, utilties, rent (a big one) and misc costs like francise costs, etc. After that THEN you get your profit.

 

[Mr Natural]

So what are we talking here, maybe another $.25 to $.50 per sandwich?

Think you can afford it, cheapskates?

 

[TNHarley]

So....how is that increase in minimum wage going to bring Subway to its knees?

An increase from $7.25 to $9.00 is $1.75 an hour
Subway is open 12 hours a day and has about 5 employees

60 X $1.75 is $105 a day

How many sandwhiches would they have to seel to make up for that? Look at a footlong. Probably have a dollar or so in costs (That is a guess. When I worked at pizza hut when I was younger they had almost 3 dollars in a large supreme pizza) So on a 5 dollar footlong that would be around 4 dollars in profit. That is another 27 sandwhiches. That is a lot of sandwhiches considering they probably are less than a million a year store. Of course, depending on location

$4 of revenue over materials. then you have to add labor, utilties, rent (a big one) and misc costs like francise costs, etc. After that THEN you get your profit.

Touche
So A LOT more than 27 lol

 

[rightwinger]

So....how is that increase in minimum wage going to bring Subway to its knees?

An increase from $7.25 to $9.00 is $1.75 an hour
Subway is open 12 hours a day and has about 5 employees

60 X $1.75 is $105 a day

And what is the daily profit margin on a subway?

Also add in the increase in FICA the company has to pay for, and unemployment insurance by state, and medicare.

Remember also, minimum wage increases make other groups hanker for increases, as they can point to the minimum wage earner and say "I used to make X more than them, and now I make Y more than them, I want X again"

This increases ALL costs. Inflation occurs, and the person who got the minimum wage increase loses any buying power they had.

And the cycle repeats. Didnt you take basic economics?

Labor is a cost of doing business

So is the rent on your store, franchise fees, advertising, taxes, utilities, food and supplies.

All can fluctuate and cost an owner more than $100. So can a Quiznos opening across the street.

 

[Luddly Neddite]

Then you have posted incorrect information, as it depends how one has managed their finances up to retirement, where they live, what lifestyle they are comfortable with,and their income history.

Actually, my post did indeed discuss income management.

Subway has already cut the size of their "footlong" to 11 inches. How much did that save them?

 

[TNHarley]

Then you have posted incorrect information, as it depends how one has managed their finances up to retirement, where they live, what lifestyle they are comfortable with,and their income history.

Actually, my post did indeed discuss income management.

Subway has already cut the size of their "footlong" to 11 inches. How much did that save them?

It is 12 now