![]() University of Kansas School of Business economics professor George Bittlingmayer said it was "surprisingly difficult" to reach consensus on the effects of changing the minimum wage.īittlingmayer said other factors contributing to low wages include the country's education system and each worker's environment. The institute estimates 30 to 35 percent of the company's income is spent on labor, and that about 80 percent of McDonald's restaurants were owned by franchisees who are often small business owners. The Employment Policies Institute, a conservative nonprofit that researches the labor market, said a "serious factual error" in Morelix's analysis was his estimate that McDonald's spends only 17.1 percent of its revenue on salaries. In Photos: McDonald's Menus Around the World "The remaining half of the adjustment could come through small productivity gains or a slightly more equal distribution of companies' total revenues." "McDonald's could cover fully half of the cost increase by raising the price of a Big Mac, on average, from $4 to $4.05," the letter said. #Cost of a big mac in taiwan macRead More: Apple Retail Employees Sue for Unpaid Wagesĭanya Proud, a spokeswoman for McDonald's, said Morelix's analysis "is purely speculatory and not something that we are in a position to comment on."Īnother estimate suggests the price of a Big Mac would jump 5 cents, or 1 percent, if the minimum wage was raised to $10.50, according to a letter signed by 100 economists in favor of raising the U.S. Morelix could not be reached for comment. ![]() A Big Mac meal would jump to $6.66 from $5.69, and McDonald's Dollar Menu would go to $1.17, Forbes reported. He estimated that paying workers $15 an hour could raise the price of a Big Mac to $4.67 from $3.99, as first reported by the Huffington Post. Morelix created financial models based on McDonald's annual reports and investor data. ![]() As fast-food workers strike and protest in seven cities across the country this week for higher pay, one estimate suggests that raising the minimum wage from $7.25 to $15 an hour could increase the cost of a Big Mac by 68 cents.Įconomists have long debated the economic effects of raising the minimum wage, but Arnobio Morelix, an undergraduate student at the University of Kansas School of Business, estimated how increasing pay to $15 an hour would affect prices at the most popular fast-food restaurant in the country, McDonald's. ![]()
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