The Herald Bulletin

Evening Update

Nation & World

September 1, 2013

Workers' protests highlight fast-food economics

NEW YORK — American fast-food workers often earn about $7.25 an hour to make the $3 chicken sandwiches and 99-cent tacos that generate billions of dollars in profit each year for McDonald's and other chains.

Thousands of the nation's many millions of fast-food workers and their supporters have been staging protests across the country in the past year to call attention to the struggles of living on or close to the federal minimum wage. The push raises the question of whether the economics of the fast-food industry allow room for a boost in pay for its workers.

The industry is built on a business model that keeps costs — including those for labor — low so companies can make money while satisfying America's love of cheap, fast food. And no group along the food chain, from the customers to the companies, wants to foot the bill for higher wages for workers.

Customers want a deal when they order burgers and fries. But those cheap eats squeeze franchise store owners who say they already survive on slim margins. And the corporations have to grow profits to keep shareholders happy.

"There's no room in the fast-food business model for substantially higher pay levels without raising prices for food," says Richard Adams, a former McDonald's franchisee who now runs a fast-food consulting business.

Caught in that triangle are the workers. The median hourly wage for a fast-food cook last year was $9, up from about $7 a decade ago, according to the Bureau of Labor Statistics. But many workers make the federal minimum wage, which was last raised in 2009. At $7.25 an hour, that's about $15,000 a year, assuming a 40-hour workweek. It's well less than half of the median salary of an American worker.

The protests come as President Obama has called for an increase of the federal minimum wage to $9 an hour, with some members of Congress and economists calling for a hike as well. And the fast-food workers movement is getting financial support as well as training from organizers of the Service Employees International Union, which represents more than 2 million workers.

Text Only
Nation & World
  • news_popefrancis.jpg Pope Francis, huge crowd joyously celebrate Easter

    Celebrating Easter Sunday, Christianity's most joyous and hopeful day, Pope Francis prayed for peace in Ukraine and Syria and for an end to the terrorist attacks in Nigeria that have targeted many Christians.

    April 20, 2014 1 Photo

  • news_24restaurants.jpg Mayor's menu filled up: One day, 24 restaurants

    Jenkintown (Pa.) Mayor Ed Foley, in a gut-busting campaign to draw attention to the tiny borough's varied restaurant scene, set out to visit all 24 of them on Saturday, starting with a pre-dawn visit to IHOP.

    April 20, 2014 1 Photo

  • news_ukraine.jpg US weighing military exercises in Eastern Europe

    The United States is considering deploying about 150 soldiers for military exercises to begin in Poland and Estonia in the next few weeks, a Western official said Saturday.

    April 20, 2014 1 Photo

  • news_skoreaferry.jpg 10 more bodies found inside sunken ferry by divers

    Divers recovered 13 bodies from inside a ferry that sank off South Korea, pushing the confirmed death toll to 46, officials said Sunday. The discovery came after rescuers finally gained access to the inside of the ship following three days of failure and frustration caused by strong currents and bad visibility due to inclement weather.

    April 20, 2014 1 Photo

  • spt_flanagan.jpg Hometown favorite wants to win Boston Marathon, for Boston

    Shalane Flanagan grew up in nearby Marblehead with a reverence for the Boston Marathon and dreamed, like many locals and foreign runners alike, that she would win the race someday. Her goal has changed now.

    April 19, 2014 1 Photo

  • news_felumlee.jpg Ohio couple married 70 years die 15 hours apart

    A couple who held hands at breakfast every morning even after 70 years of marriage have died 15 hours apart.

    April 19, 2014 1 Photo

  • news_missingboymass.jpg Body found by highway is missing Massachusetts boy

    The body of a small boy apparently cast off the side of a highway has been confirmed as a missing 5-year-old, authorities said Saturday.

    April 19, 2014 1 Photo

  • news_mounteverest.jpg 13th body pulled from snow in Everest avalanche

    Search teams recovered a 13th body Saturday from the snow and ice covering a dangerous climbing pass on Mount Everest, where an avalanche a day earlier swept over a group of Sherpa guides in the deadliest disaster on the world's highest peak.

    April 19, 2014 1 Photo

  • news_malaysiaairlines.jpg Sub search for missing jet to be finished within a week

    A robotic submarine looking for the missing Malaysia Airlines jet is expected to finish searching a patch of the Indian Ocean seabed within a week after so far coming up empty, and the search area may be expanded after that, officials said Saturday.

    April 19, 2014 1 Photo

  • news_bostonofficerslain.jpg MIT honors officer slain after Boston Marathon bombings

    Like many other youngsters, Sean Collier wanted to be a police officer. Unlike most, he brought that dream to life — and then died doing it, becoming a central character in the gripping hunt for the Boston Marathon bombing suspects.

    April 19, 2014 1 Photo

More Resources from The Herald Bulletin
AP Video
Raw: More Than 100,000 Gather for Easter Sunday Raw: Greeks Celebrate Easter With "Rocket War" Police Question Captain, Crew on Ferry Disaster Raw: Orthodox Christians Observe Easter Rite Ceremony Marks 19th Anniversary of OKC Bombing Raw: Four French Journalists Freed From Syria Raw: Massive 7.2 Earthquake Rocks Mexico Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Deadly Avalanche Sweeps Slopes of Mount Everest
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium