SEATTLE NEWS ARCHIVES & FEATURES

Why should I pay 68 cents more for a Big Mac in exchange for higher worker wages?

Jul 31, 2013, 4:46 PM | Updated: 5:11 pm

A new analysis says McDonald’s would have to raise the price of a Big Mac 68 cents to meet th...

A new analysis says McDonald's would have to raise the price of a Big Mac 68 cents to meet the demands of workers calling for a $15 an hour wage. (AP file)

(AP file)

Would you pay an extra 68 cents for a Big Mac if it meant the workers could make $15 an hour? That’s how much one business student who analyzed McDonald’s financials says the price would go up to meet the demands of fast food workers demanding a living wage.

But KIRO Radio’s Don O’Neill says many customers wouldn’t be willing to eat the price increase.

“There’s a reason McDonald’s prices the Big Mac below $4,” he says, harkening back to his days selling cars, where he observed customers have a hard time making a jump to the next dollar.

“You take that Big Mac over $4 and it doesn’t matter if it’s up 58 or 68 cents or whatever. There’s some mental gymnastics there and it would really hurt the sales of the Big Mac,” Don says.

University of Kansas business student Arnobio Morelix, who did the analysis, tells Forbes a Big Mac meal would cost $6.66 rather than $5.69, and the chain’s famous Dollar Menu would go for $1.17.

“Some folks online are complaining they will not pay $2 for their Dollar Menu, but the truth is that even if McDonald’s doubled salaries, the price hike would not be 100%,” Morelix tells Forbes. “I will be happy to pay 17 cents more for my Dollar Menu so that fast food workers can have a living wage, and I believe people deserve to know that price hikes would not be as high as it is often portrayed.”

Don disagrees. “A dollar menu has to be a true dollar menu. I think that it is a big deal.”

Fast food workers have staged walkouts recently in Seattle and around the country demanding a higher wages. But many small business owners have argued increasing the minimum wage to $15 or more would drive them out of business. Morelix counters his study proves otherwise.

KIRO Radio’s Ron Upshaw points out Morelix failed to factor in the cost of a price hike to an entire family.

“You don’t just order one thing. Mom’s going to order a Big Mac and dad’s going to order a Bic Mac and the kids are all getting two or three things on the dollar menu so your individual bill isn’t going up 67 cents, it’s going to go up a couple of dollars,” Ron says.

As the arguments continue, Ron says the fundamental issue remains that entry level service jobs aren’t meant to be living wages.

“Why would that person be entitled to make $15 an hour,” he asks. “The meaning of the job is to make you want a better job. It’s not intended to support a family of four. It’s intended to give you a little bit of money and then you go ‘wow, I want to get an education, I want to raise my station.'”

Please follow our Community Guidelines

Seattle News Archives & Features

Andre Sayles (2) bite of seattle shooting suspect...

Tom Brock

Texts on hold: SPD delays Bite of Seattle shooting records

Interim Seattle Police Chief Andre Sayles says he needs more time before he can release the police department's internal communications the night of the deadly "Bite of Seattle" shootings.

7 days ago

Two alleged wire thieves caught in the act on Highway 12 near Aberdeen. Authorities estimate they d...

Tom Brock

Grounded: Grays Harbor deputies cut short highway wire heist

Deputies in Grays Harbor arrested two men Saturday for trying to steal hundreds of feet of wire along Highway 12.

7 days ago

A huge tree fell in the parking lot of Burien's Seahurst Park, crushing six vehicles....

Tom Brock

Fallen tree crushes parked cars at Burien’s Seahurst Park

A huge tree fell in the parking lot of Burien's Seahurst Park Monday and crushed six cars.

13 days ago

Two separate shootings in Seattle's Belltown neighborhood left two people dead and three others inj...

Tom Brock

Belltown violence: 2 separate shootings leave 2 dead, 3 injured early Sunday morning

Two separate shootings in Seattle's Belltown neighborhood overnight left two people dead and three others injured.

14 days ago

Associated Press

Teenager arrested and 5 others sought in deadly July 4 fire in Washington state

EAST WENATCHEE, Wash. (AP) — An 18-year-old in Washington state has been arrested for the investigation of manslaughter and arson in connection with a deadly July 4 fire, a county sheriff said Thursday. The teen from Kent was among a group of people setting off illegal fireworks from the back of a truck when one […]

17 days ago

Authorities issued a Level 3, Go Now, evacuation advisory for a new wildfire called the Goat Fire i...

Tom Brock

EVACUATE NOW: Goat Fire spikes to Level 3 in Upper Cle Elum Valley

Authorities are ordering evacuations for a new fire, called the Goat Fire, in the Cle Elum Valley of the Cascade Mountains.

28 days ago

Why should I pay 68 cents more for a Big Mac in exchange for higher worker wages?