If McDonalds Doubled Its Salaries, Big Macs Would Only Cost $0.68 More
4:15 pm, July 30th | by Grace Rasmus
Remember a few weeks ago when McDonalds had a really hard time figuring out how its employees could live off of their meager wages? In an effort to teach employees how to balance a budget while earning $8.25/hr (on average), the fast food company made a plethora of ridiculous assumptions, including that employees would have a second full-time job and would never have to pay for heat or groceries.
“Hey Ronald McDonald,” we imagine the McDonalds employees on strike are saying. “Instead of distributing patronizing financial literacy charts, how about actually giving your employees a livable wage?”
“Inconceivable!” the clown shouts back from his heated mansion, his mouth dripping with the spoils of capitalism — namely, special Big Mac sauce.
However a University of Kansas student has found that a wage increase for McDonalds employees would cost customers mere cents. If McDonalds were to double the salaries and benefits of all of its employees — from the CEO down to the minimum wage cashiers — it would only add an extra 68 cents to a Big Mac’s cost, the study claims.
Currently, a minimum wage McDonalds employee makes $7.25 per hour. The CEO makes $8.75 million a year. Arnobio Morelix found that if the former were raised to $15 and the latter to $17.5 million, the dollar menu would only have to become the $1.17 menu and the Big Mac’s price would increase from $3.99 to $4.67.
Admittedly an overnight price increase of 17 percent would probably be a little extreme and might hurt business but, then again, we’re not sure why CEO Donald Thompson would need/deserve a raise. If Thompson’s pay remained the same but low-wage workers received a raise, the price difference for customers would be negligible.
Friday, 10:15 a.m. | Updated
The Huffington Post, our original source, has amended its story to reflect that Morelix’s study “only takes into account the payroll & employee benefits of McDonald’s company-operated stores and excludes franchisee-run stores.” Thus Morelix’s estimation is not entirely accurate.
This article has been revised to reflect the following correction: Arnobio Morelix is registered as an undergraduate student at the University of Kansas. He is not a researcher for the university.