Friday, May 30, 2014

The Slow Death of Fast Food?

A recent article chronicling the relationship between fast food franchises and the minimum wage brings up the specter of job losses due to rising labor costs.
CKE Restaurants' roots began in California roughly seven decades ago, but you won't see the parent company of Carl's Jr. and Hardee's expanding there much anymore.  What's causing what company CEO Andy Puzder describes as "very little growth" in the state?

In part it's because "the minimum wage is so high so it's harder to come up with profitable business models," Puzder said in an interview. The state's minimum wage is set to rise to $9 in July, making it among the nation's highest, and $10 by January 2016.   (source)

But is this really such a bad thing?  Morpheus has a suggestion:

In accordance with the triple bottom line of profits, people, and environment, it's easy to understand why a business model that flunks two of the three categories is no loss to mourn.  What other jobs could be created instead - ones that meet similar demands but do so in a healthy, ethical way?

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