Wendy's CEO says the company is responding to higher min wages by automating processes
President Obama has frequently demanded an increase in the federal minimum wage to $10.10 from $7.25. Meanwhile, dozens of states have set minimum wages above the federal level and politicians from Seattle to New York are congratulating themselves for taking it all the way to $15
President Obama has frequently demanded an increase in the federal minimum wage to $10.10 from $7.25. Meanwhile, dozens of states have set minimum wages above the federal level and politicians from Seattle to New York are congratulating themselves for taking it all the way to $15
OOPS, cut off the article
Maybe they should look back at the workers they’re leaving behind on their march to progressive-landia. Make that ex-workers.
Last week the Wendy’s Company did a public service on its second-quarter earnings call by explaining how mandated wage hikes will lead to fewer jobs for the low-skill workers that progressives claim to be helping.
First, CFO Todd Penegor talked about the pressure to pay higher wages and said that “we continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. And you’ll see a lot more coming on that front later this year from us.”
On last week’s call with securities analysts, Wendy’s CEO Emil Brolick was asked how the franchisees who own and operate Wendy’s locations could raise prices to offset the higher wage costs in places like New York. He replied that “our franchisees will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price.
=====
Look at the post from guesser in this thread.
Maybe they should look back at the workers they’re leaving behind on their march to progressive-landia. Make that ex-workers.
Last week the Wendy’s Company did a public service on its second-quarter earnings call by explaining how mandated wage hikes will lead to fewer jobs for the low-skill workers that progressives claim to be helping.
First, CFO Todd Penegor talked about the pressure to pay higher wages and said that “we continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. And you’ll see a lot more coming on that front later this year from us.”
On last week’s call with securities analysts, Wendy’s CEO Emil Brolick was asked how the franchisees who own and operate Wendy’s locations could raise prices to offset the higher wage costs in places like New York. He replied that “our franchisees will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price.
=====
Look at the post from guesser in this thread.
OOPS, cut off the article
Maybe they should look back at the workers they’re leaving behind on their march to progressive-landia. Make that ex-workers.
Last week the Wendy’s Company did a public service on its second-quarter earnings call by explaining how mandated wage hikes will lead to fewer jobs for the low-skill workers that progressives claim to be helping.
First, CFO Todd Penegor talked about the pressure to pay higher wages and said that “we continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. And you’ll see a lot more coming on that front later this year from us.”
On last week’s call with securities analysts, Wendy’s CEO Emil Brolick was asked how the franchisees who own and operate Wendy’s locations could raise prices to offset the higher wage costs in places like New York. He replied that “our franchisees will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price.
=====
Look at the post from guesser in this thread.
So CEO's are looking for cost cutting measures to increase their bottom line? Did they just start doing that?
Well yeah CEO’s & CFO’s are always going to look to streamline costs where possible. But the issue here is that they are doing it by cutting employees as a direct result of liberal policies. And, they are doing it in direct contradiction to the talking points of those supporting minimum wage increases.
the consequences of rising wages are quickly rippling across Corporate America: Those same diverse groups of companies are reporting plans to raise prices, slash workers, and move toward increased automation.
“Somewhere along the line, we’ve got to reflect those increased costs and increase the revenue from menu pricing,” said Ark Restauraunts CEO Michael Weinstein on an earnings conference call this month. “If you’re a purveyor selling us chicken, and if your minimum wages go up, you’re going to raise your prices to us, and we’re going to raise our prices to the customers.”
Ark, which operates restaurants like the Bryant Park Grill in New York and the Rustic Inn in Florida, said in some cases, it’s raised prices by 10% to 12%.
For Sally Beauty Supply, higher wages has meant raising prices on things like hair coloring and nail polish. At El Pollo Loco, it’s meant raising prices on value menus and introducing higher-priced items like carne asada. And at Wendy’s, higher wages mean a focus on installing more self-order kiosks and automating more restaurant kitchens.
As for Wendy’s franchisees, they are already looking at reducing overall staff and hours, in addition to raising prices, CEO Emil Brolick told analysts earlier this month.
“Unfortunately, we believe that some of these increases will clearly end up hurting the people that they’re intended to help,” Brolick said.
“Somewhere along the line, we’ve got to reflect those increased costs and increase the revenue from menu pricing,” said Ark Restauraunts CEO Michael Weinstein on an earnings conference call this month. “If you’re a purveyor selling us chicken, and if your minimum wages go up, you’re going to raise your prices to us, and we’re going to raise our prices to the customers.”
Ark, which operates restaurants like the Bryant Park Grill in New York and the Rustic Inn in Florida, said in some cases, it’s raised prices by 10% to 12%.
For Sally Beauty Supply, higher wages has meant raising prices on things like hair coloring and nail polish. At El Pollo Loco, it’s meant raising prices on value menus and introducing higher-priced items like carne asada. And at Wendy’s, higher wages mean a focus on installing more self-order kiosks and automating more restaurant kitchens.
As for Wendy’s franchisees, they are already looking at reducing overall staff and hours, in addition to raising prices, CEO Emil Brolick told analysts earlier this month.
“Unfortunately, we believe that some of these increases will clearly end up hurting the people that they’re intended to help,” Brolick said.
they will do just that, hence it's not wise to increase costs (taxes, health care, regulations and minimum wage, are you beginning to understand why the poorest are hurt the most?)
businesses need working capital and has I have advised scores of businesses when it's time to make tough decisions, "you're not in business to employ people, and if you don't make tough decisions to stay afloat you won't be in business period."
tough message, tough love, and they appreciate it at the end
it is what it is, and unlike government they just can't magically raise more revenues from unwilling sources
Resurrecting this thread, because this might just be the irony of all ironies...
Mike Baker @ByMikeBaker 1h1 hour ago
Nonprofit may close 15 homeless shelters due to financial trouble. One reason they cite: The rising minimum wage http://www.sharewheel.org/Home
That's right, kids...minimum wage may end up killing off homeless shelters. Way to go, dimocraps...your stupid policies may end up making things worse for the people you claim your cause is all about.
But wait, I thought Hillary said there was no connection between higher wages and lower employment?
Mike Baker @ByMikeBaker 1h1 hour ago
Nonprofit may close 15 homeless shelters due to financial trouble. One reason they cite: The rising minimum wage http://www.sharewheel.org/Home
That's right, kids...minimum wage may end up killing off homeless shelters. Way to go, dimocraps...your stupid policies may end up making things worse for the people you claim your cause is all about.
But wait, I thought Hillary said there was no connection between higher wages and lower employment?
You don't seem to understand. The essence of modern liberalism is getting your rocks off in telling others (who don't agree with you) what to do.
It has nothing to do with helping anyone. Their new big talking point is "so what if raising the minimum wage costs jobs?" In fact, that's good!
California minimum wage hike hits L.A. apparel industry: 'The exodus has begun'
Last week American Apparel, the biggest clothing maker in Los Angeles, said it might outsource the making of some garments to another manufacturer in the U.S., and wiped out about 500 local jobs.
----
Hey, if you lost your job, who cares, right? I mean, raising the minimum wage is popular!
LMFAO
Last week American Apparel, the biggest clothing maker in Los Angeles, said it might outsource the making of some garments to another manufacturer in the U.S., and wiped out about 500 local jobs.
----
Hey, if you lost your job, who cares, right? I mean, raising the minimum wage is popular!
LMFAO
