Monday, September 9, 2013

Make a Profit By Paying $15 Per Hour

You've heard that McDonald's in Australia and Europe pays workers $15 per hour and survives, but maybe you think that's some kind of furriner cheating.
How about a fast-food chain right here at home that succeeds by paying its workers double the minimum wage?

Bryce Covert at Think Progress:
Michigan’s Moo Cluck Moo currently pays entry-level workers $12 an hour — far above the state floor of $7.40 — but come October 1, that starting wage will rise to $15, co-owner Brian Parker told the Daily Beast’s Daniel Gross.
Asked why the restaurant, which has only been open since the spring, will raise its wages, Parker told Gross, “We always wanted to be at $15 an hour. It just feels human to do it.”

Its previously high wages brought the company better customer service, more skilled employees, less turnover, and free publicity. The time saved from having to hire new workers and train them will save it money. And with five people working at any given time, the increase in wages will mean an increase in hourly costs of $15, the cost of two transactions. The owners are betting that it will be a good investment.
I don't eat fast food, but if a Moo Chuck Moo opened in Kentucky and paid its employees $15 an hour - thus shaming every other restaurant in the state - I'd eat there every day.

No comments: