When westcoastpugnaciousfirst heard all the negative news about T.Horton and the varied backlashes surrounding the minimum wage issues, I thought that it was fake news.
For some background: Minimum Wage, Economists, Statcan, Banks, Unions=Messy #2
Horton’s has never been the same since the barbarians took over. It certainly has not been helped by the clumsy implementation of a much higher minimum wage.
However, let us examine a previous Post that showed what a mature and caring Horton franchise did. Then we will look at the $$ impact upon the franchise owner: Will The New Owners Of T.Hortons Continue This Good Behaviour?
Quite a guy, an employer to feel proud of. Let us use his employment #s etc and calculate the impact of the $$$ minimum wage increase. He has 250 employees at 7 stores. For the purpose of this mini study, let’s say that every employee works 40 hours per week. Before the minimum wage increase, they were paid $11.60 per hour = 1o,000 hrs x $11.60 = $116,000. Now, suddenly the hourly rate is $14.00….10,000 x $14.00 = $140,000! He has to find another $24,000 every week. Think about this, he cannot increase his prices, that is controlled by Head Office [barbarians]. He cannot reduce or cancel the numerous discount price coupons, that is controlled by Head Office [barbarians]. He cannot seek out other suppliers of equipment and food suppliers, that is controlled by Head Office [barbarians]. He cannot reduce the advertising costs, that is controlled by Head Office [barbarians].
Now we should be democratic about this, we cannot just place blame upon the barbarians. Who in their right mind would impose such a large increase immediately, if you look at places in the USA who set $12 or $15 as their target…the increase was spread over 3 years, which enabled employers to prepare solutions. Gee, we forgot, most politicians have never run a business, most politicians are career politicians: Radical & Sensible Change. Then we can see how faded this Canadian Icon has become: United Steel Workers & TFW Defeat Tim Horton-Wow!
A different version of the same events: In a fight over minimum wage at Tim Hortons, the worker loses