74 replies to this topic

[Jason-L]

Except inflation raises prices anyway.  And jobs are getting eliminated anyway.  I'm sure Subway is happy to use this as an excuse for a price jump, but it's just a handy way to goose that bottom line.

[tjv]

^huh, more income to workers, more income tax to government

an increased product price = more sales tax to government

and since they increased the price to cover the extra wage cost, they will still make the same profit

 

a 7% increase nation wide is excessive, plus on an average sandwich that's an extra 50 cents.  It takes how long to make a subway sandwich, 3 minutes?  By that quick math workers just got a $10/hr raise including labor burden

[lanforod]

^ they aren't making 20 sandwiches an hour all day long.

[57WestHills]

Subway prices went up about four-ish months ago. I don't know the percent rise then but it felt significant. Is this a second increase? I couldn't find anything on Google but I also didn't try very had. 

[jonny]

Except inflation raises prices anyway.

 

What do you mean? Inflation is an outcome, not a driver. Factors, such as increased labour costs, drive inflation. Inflation doesn't just happen on its own. The argument here is that increasing wages drives inflation, as some business owners pass on those costs to consumers (as it appears Subway has done). 

 

 And jobs are getting eliminated anyway.

 

What do you mean? Employment numbers are as strong as they have been since the mid-1970's. 

 

The outcomes being discussed here are not really up for debate. We're talking about well established, researched and documented economic outcomes of raising the minimum wage. An increase in the minimum wage causes many outcomes, including:

- Reduced business profits 

- Reduced employment (shorter hours of operation, working existing staff harder, less staff on shift resulting in worse customer service, laying off staff with poor productivity, etc.)

- Companies absorb higher labour costs by passing those costs onto consumers (inflation)

- Increased automation

- Businesses move to lower cost jurisdictions

 

etc.

[FirstTimeHomeCrier]

Every time the CEO gets a 7% pay rise, prices go up 7%, right?

[sdwright.vic]

I thought this thread was about a Subway at Fort and Blanchard?

[57WestHills]

I’m at Subway. Prices are unchanged as of yet. I’ll relish this moment.

[Nparker]

I’m at Subway. Prices are unchanged as of yet. I’ll relish this moment.

Subway offers relish now?

[VicHockeyFan]

Every time the CEO gets a 7% pay rise, prices go up 7%, right?

 

The CEO's salary is a tiny portion of overall sales.  The front-line workers' collective payroll is not.

[Nparker]

I thought this thread was about a Subway at Fort and Blanshard?

You want I should lend you one of these?

[LJ]

That would be a Subway sandwich of course.

 

A Tim Hortons franchise in Ontario is no longer giving employees paid breaks and they have to pay for half their medical and dental plan costs. Other companies are reducing hours and employees. What did you think was going to happen?

[57WestHills]

The CEO's salary is a tiny portion of overall sales. The front-line workers' collective payroll is not.

3.5 million - I’m all onboard with executives making good money. But that’s about 230,000 hours at Ontario’s minimum wage.

[UDeMan]

I'm surprised that Subway doesn't have an app where you can pre-order your sandwich with requested toppings. Just make people pre-pay through the app.  The future is automation.

 

McDonalds is really pushing their app now and giving incentives.  They just offered mobile ordering to all Victoria McDonalds, and they have a deal for $1 for a Big Mac, McChicken or Breakfast sandwich when ordering with the mobile device.  You need to connect your credit card with the app though.

[VicHockeyFan]

They do have that app or website ability.

[dasmo]

Maybe we will be lucky and this will kill this franchise. I hate it’s gross stench that emits from each one. What is up with that?
Anyway, perhaps the economics of it is to get inflation going. There’s a lot of debt in this country right now....

[VicHockeyFan]

The stench is baking bread. A similar smell is emitted by bakeries.

[Cats4Hire]

The stench is baking bread. A similar smell is emitted by bakeries.

idk it smells quite different from Cobs Bread or the grocery store's bakeries to me.

edit: I also never notice the smell at the ones in mall food courts

Edited by Cats4Hire, 10 January 2018 - 07:24 AM.

[Mike K.]

BK has increased prices as well. The $6 Whopper deal is now $7, a 17% increase.

[VicHockeyFan]

idk it smells quite different from Cobs Bread or the grocery store's bakeries to me.
edit: I also never notice the smell at the ones in mall food courts

The malls use sophisticated vent systems.