White Castle CEO on Minimum Wage: We’ll Have to Raise Prices by 50%

Minimum Wage Protest, 15 dollars
Minimum Wage Protest, 15 dollars

New York’s Governor Cuomo thinks it’s a great idea to increase the mandated minimum wage to $15 per hour. The Democrat obviously has succumbed to the dumbed-down idea by the unions pushing their ‘Fight for 15’ scam. Cuomo calls it ‘economic justice.’

From National Review:

But Cuomo’s idea of “economic justice” is a long way from the dollars-and-cents reality of running a burger business. If labor costs rise dramatically, White Castle will have to balance its books by raising prices or changing its business model so that it needs less labor.

“Is there any room to raise prices to cover costs?” Richardson muses. “We think we’d need to increase menu prices by something like 50 percent. It’s not something we’ve done before. It’d be catastrophic.”

 

Of course, Cuomo and his union cronies never actually think about the effects that increasing the minimum wage will have on unskilled workers trying to get their first job:

 

But thinking through the implications of raising prices to cover increased costs, which could reduce sales, isn’t what irks Richardson the most: To him and to White Castle, New York’s minimum-wage hike is a threat to a culture of opportunity in the neighborhoods that they have always called home.

“Candidly, this could create a whole generation of kids who won’t get their first job,” Richardson laments. “We’re in tough neighborhoods — and White Castle hasn’t abandoned those neighborhoods. On the surface, higher pay seems noble, but it’s not – because it denies the reality of the free-enterprise framework that has allowed small businesses like ours to thrive.”

 

There is historical evidence along with more recent statistics that in cities where the minimum wage was raised, people do indeed lose hours or jobs. No one is going to hire an unskilled worker at $15/hour. No one. That destroys the ability of teenagers or new workers to even get experience to get better paying jobs.

Democrats don’t seem to care.

So for all of you who believe Democrats or the ‘Fight for 15’ crowd actually care about you or your future, think again.

They are hell bent on destroying your future. Just take a couple of economics classes and learn about ‘supply and demand’ then maybe you’ll understand reality rather than their faux utopia.

Reprinted with permission via Kimberly Morin at TheFederalistPapers.

Photo credit FibonacciBlue

 

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