Could? It absolutely will, as we have said many times in this space. Good to see The Washington Post coming around.
Fast food jobs are entry level jobs. They are not meant to sustain families. And the harsh reality is that the work does not demand $15 an hour. One can not just use the magic wand of government and make it so. If we raise the minimum wage, jobs disappear. That’s just the way it is.
In many ways it stinks, particularly if one is struggling to get by. We understand that. And we also understand that “understanding” doesn’t pay the bills. But again, forcing a large increase in the minimum wage will only expedite the loss of low skilled jobs. It’s not going to make things better for many of the people holding signs in front of McDonalds.
(From The Washington Post)
The industry could be ready for another jolt as a ballot initiative to raise the minimum wage to $15 an hour nears in the District and as other campaigns to boost wages gain traction around the country. About 30 percent of the restaurant industry’s costs come from salaries, so burger-flipping robots — or at least super-fast ovens that expedite the process — become that much more cost-competitive if the current federal minimum wage of $7.25 an hour is doubled.
“The problem with the minimum-wage offensive is that it throws the accounting of the restaurant industry totally upside down,” said Harold Miller, vice president of franchise development for Persona Pizzeria, who also consults for other chains. “My position is: Pay your people properly, keep them longer, treat them right, and robots are going to be helpful in doing that, because it will help the restaurateur survive.”