Category Fast Food places will be forced to eliminate jobs or go brooke

Jul 9 2024

June Jobs Report is WEAK


Posted Jul 9, 2024 By Martin Armstrong 

Jobs

The June jobs report revealed better than anticipated results with 206,000 new jobs now added to the US economy. Is Bidenomics working? Absolutely not. The jobs reports are inflated because the Biden Administration has been multiplying the public sector.

Of the 206,000 new jobs, 70,000 were created within government, surpassing the 49,000 government jobs created last June. Local government accounted for the bulk of new positions within the private sector last month. One-third of all new positions created in June are within the government, funded by taxpayers, and add nothing to the overall GDP. The public sector is growing at the highest annual pace since the 1990s.

manufacturing man 1

America needs manufacturing positions. Our industries are fleeing the nation entirely and our ability to produce has been drastically undercut. At least 10% of overall GDP is at risk. The Biden Administration aimed to increase manufacturing hires by 1 million in 2024. The sector lost 9,000 positions in February and then failed to gain a single hire in March. The data for April and May is still preliminary and can be revised, but they believe there was a net gain of 5,000 manufacturing jobs from December 2023 to May 2024 based on the Bureau of Labor and Statistics.  Now, initial results show that the US shed even more manufacturing jobs in June.

April’s job report was revised down to 108,000 compared to the initially reported 165,000 positions. May’s report was also revised to show 218,000 new jobs vs the initially reported 272,000 positions. The revised figures never make the headlines as they want those initial reports to paint the US economy in the best light.

ADP Private Sector Jobs

In April, Federal Reserve Chairman Jerome Powell said he was unimpressed by the “strong” jobs report, and it certainly was not enough for the central bank even to consider dropping rates. There is a reason that the central bank does not believe the “strong jobs reports” are an indication of a strengthening economy. Unemployment, at best, is at 4.1% right now – the highest since November 2021.

Expanding the public sector is a detriment to the US economy. These jobs produce nothing and cost the taxpayers a hefty sum. Trouble consistently brews when governments grow disproportionately. The Roman Empire, the longest-standing empire in history, vanished as a direct result of an oversized public sector that bankrupted Rome. The private sector produces economic growth, while government is a public servant consuming the wealth generated by others.

May 8 2024

Value Clients Exiled from Fast Food Chains


Posted 0riginally on May 7, 2024 By Martin Armstrong 

mcdonalds

Blue states that implemented minimum wage hikes are seeing a drastic rise in food prices. Fast food chains like McDonald’s, Chick-fil-A, Chipotle Jack in the Box, Burger King, Domino’s, and more have reported menu item hikes in places like California that now require a much higher minimum wage.

This comes at a time when fast-food establishments are struggling to make ends meet. Last week, numerous establishments like Taco Bell, Starbucks, KFC, Pizza Hut, McDonald’s, and others noted a downtick in quarterly earnings. Fast food was once a cheap and quick alternative to the grocery store before inflation turned any outside dining experience into a luxury. Fast food chains that tend to attract upper-middle clientele like Chipotle have not seen as drastic of a reduction, but value clients earning >$45,000 annually, the core base that these establishments relied on, are not able to eat out.

McDonald’s said it has adopted a “street-fighting mentality” to attract new clients, but that will be a hard target to achieve domestically due to supply chain constraints, food inflation, and now minimum wage requirements. Fast food restaurants saw a 5% price increase overall in March, but states like California are witnessing prices surpass anything that the value client could once afford.

Minimum Wage 2

Effective April 1, fast food workers in California now receive a minimum wage of $20 thanks to a new law, AB 1228, signed by Governor Gavin Newsom. California already had one of the highest minimum wage brackets in the country at $15.50.

Chipotle, one of the few establishments that did not post a quarterly loss, was forced to raise prices between 6% and 7% across all 500 California-based locations. “The state isn’t making it easy,” Chipotle Chief Executive Brian Niccol reportedly said. The Wall Street Journal reported that menu items at Chic-Fil-A in California have risen by as much as 13% since mid-February.

Expect companies to begin issuing much smaller portions and automating their workforce. These measures are always passed down to the consumer, and in this instance, the target consumer is already priced out. McDonald’s is already looking at expanding internationally in places like China where it has become more profitable to conduct business. Politicians like Newsom pass these laws that sound great when spoken to the crowd but they are never properly executed because they go against the free market.