The article explained how increasing minimum wage would make franchisers’ have to increase cost to consumers and reduce profit margins. In contrast, it explains how increasing minimum wage will not negatively affect employment. It concludes that if minimum wage was to increase, it may negatively affect the progression of the business because of the factors that would be changed, but not employment and time distribution.
The article expresses the idea that increasing wage means increases prices for consumers. In many of the news articles and other sources I read on my topic, the franchisers also expressed this idea. The franchisers also felt increasing wage drastically in an already recessed environment, would not be feasible. The article seemed to be pro-low wages for happier and loyal consumers.
Wimmer S., Bradley. (1996). Minimum-wage increases and employment
in franchisee! fast-food restaurants. Federal Communications Commission, Washington, DC 20554