(03-11-2017, 08:06 AM)Kinser79 Wrote: Obviously I can't speak for all businesses but I can speak about the food industry, both as management in it, and a patron of it. With McDonalds in particular, factor 3 is the most important to me. Lets just suppose we have 50 bucks to spend. Now I gotta feed a 60 year old, 2 30-something men, and a teenager.
Now I can go to McDonalds (or in our case Burger King, none of us really like McDonalds) and get a mediocre meal, or I can go to the Chinese buffet, and eat far too much including more than a little sushi, and have two beers for me and the BF, an have a really great time. (Mother doesn't drink at all, and the kid can't drink at a restaurant for obvious reasons--if he wants a beer at home he merely need to ask [as it is either my beer or the BF's beer and to us alcohol is nothing to really fuss over].)
But yes, labor is a major overhead consideration for restaurants. If it gets slow I actually have to cut people, especially hourly people to keep labor costs under a certain percentage or I won't make a profit on the day.
ETA: Chances are good even the junkyest food at the Chinese place is still healthier than McDonalds.
Those of us who have worked in such places and considered the economics understand this. Truth is, I would rather got to a Thai restaurant but then you can't throw a dead cat without hitting one of those where I live. I may spend a little more but the food is much better than any fast food joint. Indeed, some of the best Thai food I encountered was from a food cart in Portland in near PSU. I went their every chance I got.
As for the economics involved it is clear you have more of a clue than Eric the Obtuse or Odin will ever have.
Democracy is the theory that the common people know what they want, and deserve to get it good and hard. -- H.L. Mencken
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises
If one rejects laissez faire on account of man's fallibility and moral weakness, one must for the same reason also reject every kind of government action. -- Ludwig von Mises