I'm throwing a dart with these numbers for sake of discussion, but some Tim's have a million employees. Go there in the morning and there can be about 15 people back there cooking, cash, drive through.
What I don't know is what the avg Tim's wage is to start with (X), so the difference between X vs. $14/hr can be anything. For sake of argument, let's say the avg difference is $1/hr as the avg. Tim's clerk makes $13/hr.
- So you got 15 people at peak times, but for fun, let's say the avg number of employees working at any given time is 10
- Tim's can be open anywhere from 16-24 hours, let's say 16 hours
- You got to pay out $160 extra in wages (160 man hours x $1/hr)
- Multiply that by a year and you get..... $58,400 in extra wages for a store
Is $60,000 chump change? I don't know. I also guessed at some math for sake of fun.
You guys can do your own guesstimate using whatever variables and rates, but it comes down to:
- Avg # employees per Hour x A store's hours of operation x Avg Hourly Wage Difference per Hour vs. $14 x 365 days
Thanks but I was actually interested in seeing the full financials. You've provided an important piece which is basically an estimated $60,000/year in additional costs. But I would like to see sales, cost of goods, etc. too to see. $60,000 on a company that pulls in $1,000,000 is fairly big (6%). For a company bringing in $3,000,000, it's only 2%, and so on. Now, if you were to raise the price of coffee by say $0.10, how much additional revenue would that generate - I think we can agree that $0.10 doesn't break anybody's bank that much who's buying Tim's coffee.
My point is that there are plenty of ways to offset the increase in labor wages. Granted in some cases it my be reducing the number of employees and getting everyone to work a little harder to accomplish the same tasks. Or you cut costs in other areas, drive up revenues in some way.
And I am definitely not a fan of Kathleen Wynne. But I have to say I am in total agreement with wage increases that allow people to work full-time and not still be living in poverty. Simple rule of thumb - take an hourly wage, double it and multiply by 1000 and you'll get the approximate yearly earnings. So $10/hour means you earn approximately $20,000 pretax. $14/hour = $28,000 pretax. I think you give people a much better chance with the latter.
What I personally don't like to see are low-skill jobs that start out at minimum wage and the person continues that job for many years so they are paid more. Train/educate said person so they move up the ladder (not always possible) and keep these jobs for students and young people who probably don't need to be earning the big bucks at that stage in their lives.