King of Kensington
Senior Member
And what a stupid post by Andrea Horwath:
https://twitter.com/AndreaHorwath/status/949050622573150209
https://twitter.com/AndreaHorwath/status/949050622573150209
I don't see what's wrong with it. There seem to be 3 options here.And what a stupid post by Andrea Horwath:
https://twitter.com/AndreaHorwath/status/949050622573150209
I have difficulty seeing many places like Tim Hortons justify having 24/7h locations with the new wage hike.Last night’s National had a reasonably objective piece on the costly math for Tim Horton’s franchisees of Wynne’s minimum wage hike. If she can’t even get a propaganda piece from the CBC, she’s in real trouble.
Problem is, corporately, Tim's may want themselves to be known as a 24/7 operation. If some locations buck the national trend, it could have a negative effect on the entire company. If you are a franchisee, you have to play by the corporate rules.I have difficulty seeing many places like Tim Hortons justify having 24/7h locations with the new wage hike.
Then they cut the number of workers during the day, meaning an already over-burdened staff has to take on more tasks and responsibilities, and overall service declines even further.Problem is, corporately, Tim's may want themselves to be known as a 24/7 operation. If some locations buck the national trend, it could have a negative effect on the entire company. If you are a franchisee, you have to play by the corporate rules.
Smaller mom and pop operations can easily reduce hours.
Does anyone here go into a McDonald’s these days? Self serve order kiosks. Just like @WislaHD has written. Staff only prepare orders. They don’t take them.It is just a matter of time until the front-end staff taking orders is replaced by machine and the minimum wage hike is hastening it. Staff roles will be shifted to preparing orders and performing backroom tasks, and overall staff numbers will be reduced.
That is true. But a small proportion of the total orders are taken there. And there is the fact that most orders now cost them nothing to take.You can still order at the till.
I doubt many would have expected their labour costs to go up by over 30% in 15 months. This is a huge change that nobody could have foreseen.Shouldn't a rise in minimum wages have a positive inflationary effect? Doesn't that translate into higher demand for goods and services in turn driving up prices?
That's where you adjust the impact of costs.
I understand that the parent company in the case of Timmy's controls prices for franchisees, but then that's the business model the franchisees signed up for. It was obviously lucrative enough to take on certain risks in their estimation. If your costs go up you raise prices not renege on labour contracts. Talk to your parent company instead of trying to chintz your employees.
PS: I don't patronise Timmy's (as well as think they do not represent what Canada is for me) so I can't even pretend to go along with any sort of boycott. Which anyway could hurt the employees the most anyway. Franchisees have investable assets, I wouldn't worry about them too much.
Thanks for highlighting my point. They didn't need to foresee this increase in labour cost to know that having the parent company control prices is a risk. They were willing to take that risk. In business you can always safely assume that input costs will rise beyond what you may have expected, but then, most of the time you can also control your prices to reflect shocks to input costs. This is a different business model with its own inherent risk which we can assume were deemed to be worth the potential returns on investment to these people.I doubt many would have expected their labour costs to go up by over 30% in 15 months. This is a huge change that nobody could have foreseen.
Maybe Tim's could have added a special fee in Ontario - similar to a Fuel surcharge that airlines charged. That way the national campaign could still say a donut cost $0.99, but in Ontario there is a few percent surcharge.
Shouldn't a rise in minimum wages have a positive inflationary effect? Doesn't that translate into higher demand for goods and services in turn driving up prices?
That's where you adjust the impact of costs.