Monday, April 4, 2011
McDonald's jobs
Around the country many Mcdonald's stores are moving to a 24-hour operational status. This will produce an increase in Mcdonald's profits because it will allow costumers to buy there product at all times of the day. It will also help boost the economy because with this switch over Mcdonald's will have to hire more employees. In fact they are hoping to hire around 50,000 employees in a single day to fill in the new and empty positions. For companies to create a vast amount of jobs in a short amount of time would boost the economy indefinitely. It would lower the unemployment rate while increasing the business cycle. This would be so because now 50,000 people that were previously unemployed will now have a job. This would intern put money in their pockets for them to spend on other business increasing the flow of the business cycle. This could be a boost for our economy, giving us the push that could help us rise faster and out of the recession.
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16 comments:
http://www.csmonitor.com/Business/2011/0404/McDonald-s-jobs-Can-it-hire-50-000-workers-in-a-day
Good analysis. Will all McDonald stores go to this format or just selected stores? Where are the concentration of jobs demographically?
Although I agree the amount of jobs will increase like you said, and that it will in return help the economy, I believe that you have missed one fact. Even though they are open 24 hours that doesn’t not mean that people will be coming in that full 24 hours making McDonalds much more money. Without that huge increase on revenue how would they expect to pay these 50,000 more workers? I do believe that it would allow McDonalds to increase their profit but I don’t think that this would be the smartest way to increase their profit in the most effective way. If they are going to just improve the economy and make more jobs they will succeed in this goal, but if their plan is to make money I don’t think this will benefit them in the ways they hope.
I think that Mcdonald's choice to stay open 24 hours a day is awesome. Although they may not get as much business at the late hours, I can definitely see myself taking a trip to Mcdonald's in the early hours of the day. Not to mention the job opportunities people will receive.
I agree with Elianah. I'm sure McDonalds' revenue will increase, but not to the extent to where they could pay 50,000 more workers. They will get some extra business, especially from truckers and teenagers, but it won't be anything dramatic.
Yes, this change in McDonald's staying open 24 hours a day is good for customers like Payne. But I don't think that they will get enough business through the hours that most people are at home sleeping. I'm not sure that the money will be compensated between paying the employees and the business during those hours. So I'm not sure how this will affect McDonald's, but I do believe that some of the money will be lost like Elianah said.
I agree with what Elianah said. Although there will be some increase in the overall revenue of McDonald's, there will most likely not be enough revenue to pay these 50,000 new workers. With the slight increase in revenue and the huge increase in workers, McDonald's could in fact lose money. What the addition of these 50,000 workers will do, is offer way more jobs to those in need and decrease the unemployment rate.
There are a couple of reasons that McDonald's had decided to open its restaurants for 24 hours a day. Usually, this would be caused by an excess demand of McDonald's food. However, seeing that we don't see long lines outside of McDonald's all day long, this probably is not the reason. I think that McDonald's has made this decision to maximize their profit. With the addition of about eight more hours a day, McDonald's will look to advertise their new 24 hour a day policy and attract their customers to buy food as maybe a late dinner or a midnight snack or even an early breakfast. If this does work out the way McDonald's is hoping, they will make a profit because their cost subtracting from their revenue will still be a positive number. However, if things do not go the way McDonald's is hoping, then they will end up having to pay their employees more than their revenue and will make no profit. If this were to happen then we can predict that this new 24 hour thing will not last for too long.
Yes, this is a good option for Mcdonalds and trying to benifit the economy and try to raise their reveunues. But like Elianah said, how many customers are you really going to get at 3 in the morning? Mcdonalds might actually be losing money from this move. And for safety reasons they can't just keep one person working the whole restaraunt. The demand will be quiet low in the middle of the night depending on the location. Customers in downtown are probably more likely to buy mcdonalds food late at night compared to suburbian area's. But also something that might benificial for Mcdonalds to only allow certain restaraunts to be open 24 hours. Only the ones that would get the maximum customers in those later hours
I am sure McDonalds will make money by increasing the hours they are open. They are probably many people that will me hungry at 2 am when the bars close down. Sometimes people who are having a good time at the bars will want someplace to continuing hanging out when the bars close. Police officers will now be able to get coffee or something to eat during the late night shift. I hope it works for McDonalds since they will be helping unemployement.
Before we can just count this idea out first you must look at other business that have taken this approach. If you look at Whataburger where all of the stores (at least that I've seen) are 24 hours. Whataburger makes a ton at night Becouse there just aren't very many places open at that time of night. As far as saftey in bad areas there is a risk of being robbed but it's part of the buissness. To combat local crime many businesses have deals where police eat at a discount. The demand is very high for late night fast food places and Mcdonalds is just trying to get in on the tremendous profits that companies like Whataburger and ihop have been getting for years.
I agree with Haley and Elianah as well in that McDonalds will earn more of total revenue, but the cost of hiring more employees, around the clock might not benefit them. They will earn more money at some times of the night, but at others, there will be no money coming in. I do think it is a good idea to hire more workers, in order to decrease the unemployment rate, and have more money in circulation, in order to help the economy. I also agree the McDonalds is trying to get the competitive edge like IHOP, Whataburger, and other fast food and round clock eateries. If McDonalds total profit does not increase, we can expect that the twenty four hour business will not last for long, which will then again leave people unemployed from budget cuts. Hopefully McDonalds new advertising of twenty four hour meals, will attract new customers, giving them more money to pay new employees, advertise, and hopefully succeed in their new goals of more profit throughout the twenty four hour day.
What Elianah had mentioned all revolves around marginal labor and marginal revenue. This addition of labor is a big decision which reflects McDonald’s decision to open 24 hours. McDonald’s is obviously trying to increase revenue in this way which will work to a certain degree, as Elianah had mentioned, and I feel that the move to open 24 hours may not have been the best one. With certain hours of the night proving hard to attract customers, McDonald’s must not have reviewed the marginal revenue decision well-enough to make the smarter choice. With this said, the fast-food restaurant must have also reviewed the shutdown decision which states when marginal revenue is greater than or equal to variable costs, allow the business to stay open. No matter what, McDonald’s will always have to pay the lease and the salaries at the end of the month. By deciding to stay open longer, McDonald’s must have figured that they’re profit at the end of day will be equal to or, hopefully, surpass their variable costs in order to use the remainder profit for all of the fixed costs. Even though it’s hard to believe that McDonald’s will produce much more profit by staying open 24 hours, they have made their choice and it will interesting to see how the company turns out.
I completely agree with Elianah. I believe that McDonalds has done the right thing and try to increase hours of operation to create jobs; however I do not believe that they have fully taken into account that people do not eat fast food 24 hours a day...well most people in that case. So with at least a few hours of lost time McDonalds will have paid employees to work basicaly "dead" hours, which does not maximize their profit. Economic principals state that adding more workers doesn't always maximize profit. Contrary to what is just said the overall impact of what 50,000 jobs could do to the economy is tremendous and cannot be overlooked, in the end McDonalds has done the right thing by stimulating the economy by creating so many new jobs at the expense of making the "most" money possible.
I think that this move by McDonalds will help the unemployment rate. The effects of this may not be as dramatic as they think because McDonalds doesn’t get as much business at night as they do during the day. I think it will be hard for McDonalds to even turn a profit in this situation. This move is risky because it will be hard to get enough business at night in order to pay the new employees and still have money left over for a profit. If this does work out the way McDonalds is hoping, they will make a profit because their cost subtracting from their revenue will still be a positive number. Although on the bright side of things I do think it is a positive benefit to society that they are taking the risk of hiring more workers in order to take a chunk out of the unemployment rate.
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