I posted a couple of days ago why the $15 minimum wage, picking up steam around the country and already mandated in New York and elsewhere, will badly hurt small businesses that depend on high volume sales to make profit. The fast-food industry in particular makes barely any money on each sale, but depends on a high numbers of sales to make a profit.
Burt almost every service industry is subject to the same limitations. So where is the money going to come from to jump more than 100 percent in min wage?
This morning, White Castle's vice president, Jamie Richardson, was interviewed on Fox Business's show, Varney and Company. He pointed out that labor costs account for 30 cents of every dollar of sales income, not including management compensation.
And then the bombshell: White Castle's profit margin is between only 1-2 percent of every sales dollar. So where is the money to pay the massively greater labor costs going to come from?
The Left never asks that question because they really believe that business owners are rolling in money that they should be rightfully giving to employees either as higher wages or in profit sharing. When you insist a Sanders supporter or any other socialist of the modern Democrat party actually answer the question, this is all the detail you will get: "They have the money."
See also, "Benningans CEO sounds off on $15 minimum wage"
Related: "Democrats have lost their minds over the minimum wage" -- but why stop there?
Get ready for the pace to pick up for automation replacing min wage workers.
"The Cruelty of the $15 Minimum Wage" -- It’s designed to keep people unemployed, dependent on the government, and voting Democratic -- Glenn Reynolds. Precisely.
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