Picture by K Manley
With all the activity by fast food workers to increase their salary, one fast food restaurant located in Dearborn Heights (just outside of Detroit) and north of 94 on Telegraph is leading the way with increased hourly wages for its workers. Presently at $12.00/hour, “Moo Cluck Moo” is planning to increase its worker’s salaries to $15.00 starting October 1. Daniel Gross (hi Daniel) reports on the planned increase at The Daily Beast:
“In August, I spoke with the owners of Moo Cluck Moo, a Detroit-area burger and chicken fast-food joint that is aiming to do something revolutionary: pay far more than the minimum wage. In an industry that treats labor as a commodity, co-owners Brian Parker and Harry Moorhouse decided to turn the conventional wisdom on its head. They’d start workers at $12 an hour, and design their business so that it could run profitably at those wages. Rather than take advantage of the epic slack in the Detroit-area labor market, they’d aim to set a slightly higher standard.Now, Moo Cluck Moo is doubling down on its high-wage strategy. Brian Parker says that beginning October 1, the company will start employees at $15 an hour. That’s a 25 percent increase from $12, and it represents the living wage level that workers are demanding and that many critics regard as foolish.”
Moo burger combo meal (fries and a drink) is $6.00 and not that much more than McDonalds Quarter Pounder with similar sides. Lettuce, Tomato, and Cheese come free with the Moo burger while McDonalds will charge for the extras. It sounds like improved throughput to me which would negate the increase in Labor cost. I would love to get a hold of the breakdown of Labor, Materials, and Overhead for Moo Cluck Moo to see cost impact on the ratios. I suspect it is not much greater than what it is today.
“Moo Cluck Moo” plans to open another restaurant in Fall.