The Economics of the Fast Food Industry

“Becoming a franchisee is an odd combination of starting your own business and going to work for someone else” (Schlosser 94).In Eric Schlosser’s Non-fiction book, Fast Food Nation, Schlosser reasons that fast food has widened the gap between the rich and the poor, started an obesity epidemic and propelled American cultural imperialism abroad. While the idea of a franchiser/ franchisee relationship appears to be nothing but beneficial, it has a serious drawback, which is the release/ acceptance of certain issues out of each party’s control. This, in turn causes other companies to try to develop new ways of forming this relationship. Subway, for example uses “Development Agents” to help ease tensions.

The fast-food workers are expressed as a pond in a bigger game. They have to deal with their low pay in order to ensure low prices by these franchises. Jencunas concerns go on to represent the beginning of a bigger chain effect. Briefly, he states that, “The average fast food store would go from profitable to unprofitable overnight. Some would close immediately, leaving their workers worse off than they were when working for $7.50 an hour, while others would raise prices and try and remain in business, hurting consumers” (“Don't Deserve Any More, or Less”). Evaluating his reasoning we see that if fast-food workers ask for a higher minimum wage, they will in return influence the profit margin and actually increase unemployment rate in this industry. The researchers go on to inform us that if their minimum wage increases the industry won’t be able to afford the change in their profit margin and result in bankruptcy. However, Mary Kay Henry, president of the Service Employees International Union, which supports the fast-food strike states a different claim:

To explain the how the fast food industry affects the lives of it’s employees, I have prepared a set of questions to ask employees who have a fundamental experience of working in the fast food industry (appendix[i]). I also have a similar set of questions to ask people who have never worked in the fast food industry (appendix[ii]).

The employment practices of the fast food chains also leave a lot to be desired. They are a great part of the reason that people need more than one job to survive. Because they have so many minimum wage jobs – even managers only make about $10 to $15 an hour. That had become a norm in the US, where people don 't even make a livable wage.

How does fast food affect America’s economy? Does fast food affects Americans economy in the bad way or good way? Some people say that fast foods are ruining Americans economy. They want to reduce effects of the fast food industry in America. However, the advocates do not agree because they think that fast foods are giving a major boost to the economy. They give out a few examples about the advantage of fast food to the economy such as proving jobs or helping America’s agriculture by purchasing agriculture products. In my point of view, the fast foods are affecting American economy negatively, which can be seen through the average wages of Americans, the cost of medical care for fast food

economy, in an industry that’s making billions of dollars in record profits; and they’re stealing from the lowest income workers in this country. Is that right?!”. It is true- workers of these restaurants do not even make nearly enough to survive and are victims of wage theft while corporate workers make millions more a year, caring less about what is happening to the workers below them.

In Salz’s article he compares the pay of Danish workers to American workers. This is two different contexts which must be taken into account. One cannot merely compare the dollar amount of pay when the cost of living, workers skill level, and taxes must be taken into consideration. The cost of living is much higher in Europe, for example, than in America. Also, the Danish workers are unionized compared to non-unionized, fast-food workers in America, which begs the question of what are union costs and what is involved with being in a union. In Salz’s article, he assumes

From reading all five articles, the one I would have to agree with the most would be, “The Battle Against Fast Food Begins in the Home,” by Daniel Weintraub. Weintraub stated that if we are looking for someone to blame about our child obesity rate increasing in extreme amounts and our exercising rate decreasing, we should blame the guardians of the kids. To be more specific, if you have obese children, stop blaming them about their problem. Start to blame yourself. You are the cause to their problem by not teaching them that eating healthy is super important.

Many feel that the fast food industry is providing a valuable service by catering to consumer needs; that it is inexpensive and easily accessible. For people who don't have time to prepare meals, for households in which both parents work, there's no question it provides a service. But what is the true cost of this convenience? In the book, Fast Food Nation, Eric Schlosser reveals that the cost is the lives of the people who work in the meat processing plants. Meat packing is now the most dangerous job in the United States.

The majority of Americans enjoy fast food like bees enjoy their honey. Fast food is hard not to love due to families experiencing fast paced days, parents who work more than 20 hours a week, and having children with picky appetites can be rough. For most American families, it can be a challenge to not consider eating fast food more than once a week. The fast food industry has grown tremendously through the years. The one restaurant that is known all over the world for their golden arches and their big macs is McDonalds. With knowledge and personal experiences, I can say that McDonalds is by far the worst fast food restaurant in America. I believe this due to how unhealthy the food is for our bodies, the disturbing facts about the happy meals, the poor service, and the non-cleanliness of the restaurant.

This article shows which organs and human activity systems are under the effect of fast food. It likewise portrays this effects given such definitive sources as American Heart Association, Centers for Disease Control and Prevention (CDC) and others.

done studies that shows employees morale and work ethic increase when given a fair wage. This

“Paying your employees well is not only the right thing to do, but it makes for good business”-Jim Sinegal, CEO of Costco. Many of America’s employees are not being paid well, however, for the annual income of a full-time employee who works year-round is less than $16,000 (about $15, 080) according to the current federal minimum wage (Rebuilding). To put into retrospect how out-dated the federal minimum wage is, consider that the minimum wage of 1956 amounted to exactly $7.93 in 2009 (Henderson). How progressive is it that our nation’s workers being paid less today than workers from the 50’s? The federal minimum wage should be raised in order to assist families out of poverty, to ensure the effort and loyalty of workers, and

The fast food workers are being exploited and underpaid. They work long hours with very little pay and are treated horribly. As a matter of fact, “the industry’s wages are so low that even those front line employees who work 40 hours per week are often forced to rely on public assistance, and only 13 percent have access

Within the United States, 12.7% of households had been food insecure at some point within 2015, meaning that not enough money was had to spend on food. ("United States Department of Agriculture Economic Research Service", par. 3) With this in mind, one of the largest problems when it comes to nutrition in the developed countries of the world is the availability of nutritious food to the lower classes because lower quality processed food is easier to obtain than nutritious food. This only seems to be a trend within developed countries so this argument will only focus on the developed countries such as the United States and France. Underdeveloped countries are left outside of these studies as they do not have widespread statistical values for any of their nutrition at any of the levels of