That's probably the most important point. If they just target a certain type of restaurant, it will change the economics of the entire industry.
Fast Food chains will have to adapt by drastically cutting expenses in other areas (much more automation, outsourced labor for cleaning and other tasks, cheaper food(!)), or they'll find themselves raising prices and competing with mid-level chains.
And if they can't compete against them, they'll go out of business.
Depending on how the laws are written, I suspect we would then see a new type of restaurant created to fill that void that is specifically designed to not fall under the "living wage" law.
I can understand the good intentions behind these efforts (as well as the selfish intentions from the unions), but I suspect if this continues it would end in disaster for the fast food industry, including the workers, some of whom might make out better, but many of whom would find themselves out of work.
So true...
Also...I do a lot of inner city work, both professionally and by way of ministry. And one constant is low income, government assisted people live off of fast food, granted mostly value menu type crap...i.e. jack in the Box Tacos 2 for 99 cents, but they do also go big when they get their ebt cards.
They can use the ebt card for fast food in several states, or just cash out and buy what ever they want, including alcohol and tobacco. Point being... if the worker gets 15 dollars an hour, and prices go up, many folks that can afford the added costs, will simply not pay for it because of the "rip off" factor, and the folks that live off fast food will suffer.
Then what doors would it open for other work force entry level positions? Pizza delivery? scooping ice cream? car wash? etc..
I understand that everybody deserves a living wage, but the market can only bare what it can bare?
And example that I deal with everyday is what prevailing wage (Davis Bacon act ) has created, both good and bad. If your interested we can discuss this?
MG
Don't take life so seriously in that " sooner or later we are just old men in funny clothes" "Tom 'T-Bone' Wolk"