An interesting take: the government is proposing minimum wage standards for gig workers. The paper went with 'Now you might have to pay up to $15 to get fast food delivered'.
this post was submitted on 26 Oct 2023
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it's been shown time and time again that labor cost increases alone do not affect the cost of fast food that much.. it's stacking incessant corporate greed on top of wage increases and other 'excuses' that jacks the end price up by ridiculous amounts.
Source?
i used to work in fast food management, food cost and labour cost used to run at about 30% each on average.
if labour cost went up 10% suddenly (yeah right), the businesses total expenses would have increased by a massive 3%. So you're $12 big mac meal would need to rise to $12.36 to keep up with the increased cost.
When was the last time any of us saw such a small increase in anything when it goes up? And when was that due to increased labour?
Uber is saying the cost will go up by 85%...
They're probably full of shit - but I'd expect it to be more than 10%... Labor isn't raising the cost of labour, they are improving worker rights. For example ordinary casual workers often have a minimum pay of 4 hours work.
You can give someone a 20 minute shift if you want, but you better pay them 4 hours for that day... otherwise the manager could spend the next five years in jail for wage theft.
I have't read through the proposed changes, but if they bring that to the gig economy... it won't be possible to pay a worker $6 to deliver a burger. You'll likely have to pay the worker at least a hundred bucks or so, and it's up to the business to figure out how to give the worker at least half a day of jobs back to back.
nah it can easily be done. the question is how much of a hit does the backend need to cop. when a delivery charge is $10 for example and the driver gets $4 of that, something is wrong.
If they claim that increasing Gig economy wages to minimum wage increases costs by 85%, they have just admitted that their business model is seriously flawed.
Anyone who has money invested in these corporate leeches needs to cut their losses and cash out ASAP.