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McDonald’s wants all restaurants to pay minimum wages

McDonald’s called on restaurants to pay their wait staff a minimum wage — rather than relying on tips to make up the difference in salary.

The fast-food giant, which has seen its market share shrink in the face of stiff competition from full-service eateries that rely on tipped waiters, quit the powerful National Restaurant Association earlier this week.

“Right now, there’s an uneven playing field,” CEO Chris Kempczinski told CNBC, adding that “all classes of workers should be paid at or above the federal minimum wage.”

At the center of the dispute is the tipped minimum wage — just $2.13 an hour under federal law — which allows full-service restaurants like Chili’s and IHOP to rely on gratuities to fill the gap to $7.25.

That advantage has helped them push cheap burger deals that cut into McDonald’s sales.

The Big Mac maker decided to exit the NRA over the issue while aligning itself with labor activists who have long blasted the system.

“The subminimum wage is indefensible,” said activist group One Fair Wage, which cheered Kempczinski’s remarks while calling them self-interested.

Chicago, McDonald’s hometown, is already phasing out the tipped wage.

California — which last year raised its minimum wage for fast food workers to $20 an hour — and a half-dozen other states have done the same. DC voted to kill it, then paused the rollout this year.

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by Anonymousreply 27September 8, 2025 12:05 PM

This is really pathetic and a blatant attempt by McDonald's to improve its terrible sales and attract business from social media activist fools and other younger people who are anti-tip and don't realize why it's doing what it's doing. I don't think it will work because McDonald's is too shitty even for that crowd.

The vast majority of waiters LOVE the tipping culture. In most American cities, they make far more than they would if their restaurant just paid them the local minimum wage. A good waiter can bring in serious money.

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by Anonymousreply 1September 5, 2025 10:29 PM

Shorter McDonalds: "Every Single restaurant worker should be paid as low as we pay our idiot workers!"

by Anonymousreply 2September 5, 2025 10:32 PM

Their menu is shit and I haven't eaten their food in years.

by Anonymousreply 3September 5, 2025 10:35 PM

Maybe McDonald's and other fast-food restaurants should pay their employees $2.13 and hour and have customers tip them, as well. That would make it a 'fair playing field'.

by Anonymousreply 4September 5, 2025 10:36 PM

MacD's: the Donald Trump of 'Restaurants'

by Anonymousreply 5September 5, 2025 11:42 PM

Tips? When did they start getting tips? They don’t bring your food to the table.

by Anonymousreply 6September 6, 2025 1:32 AM

Neither do we!

by Anonymousreply 7September 6, 2025 7:10 AM

R1 has it right. This “myth” that full service restaurants pay employees sub minimum wage is just that… a myth. If the employee, with tips, makes less than minimum wage, the employer is required to pay them the difference.

This argument is all a misinformation campaign by McD.

by Anonymousreply 8September 6, 2025 7:34 AM

In California, minimum wage is minimum wage. It doesn’t matter if you work in a tipped based industry or not. At proper restaurants, servers are still tipped on top of that. At higher end restaurants, the waitstaff make a pretty good living. There was an article in the SF Chronicle several years ago when Zuni Cafe decided to go with a no-tipping policy. Almost all of the waitstaff left. One was quoted as saying he was making $70,000 a year working 30-35 hours a week and his income would to $50,000 using the new 20% service charge that would be shared with the back-end/support staff.

by Anonymousreply 9September 6, 2025 9:11 AM

Please correct me if I'm wrong in understanding this :

With Trump's new 'Big Beautiful Bill', servers will no longer be required to pay federal taxes on their income earned from tips. So the server at Zuni Cafe earning $70K a year in tips (on a 35 hour week) no longer pays federal taxes on those earnings.

However, across the street from Zuni, the manager at McDonald's, earning $70K a year in salary and working more than 35 hours a week, has to pay federal taxes on those earnings ?

by Anonymousreply 10September 6, 2025 12:40 PM

R10 I'm not sure in that particular example. Zuni Cafe now adds a 20% "service charge" to the bill. That money is pooled and distributed to the other staff as well as servers. I am not sure if that will be taxed or not. I personally don't understand why tips would be excluded from income taxes. I imagine Trump is doing that to show all the "little people" how much he cares about them while he rips away their insurance coverage.

by Anonymousreply 11September 7, 2025 5:48 AM

I hate to agree with corporate McDonald's about anything, but I don't believe any restaurant or business of any type (tipping or no tipping), should be paying any employee less than the federal minimum wage of $7.25/hour. If a business can't afford to pay $7.25/hour, it's a business model that doesn't work.

by Anonymousreply 12September 7, 2025 5:56 AM

I’ve never heard of anyone tipping at McDonalds.

by Anonymousreply 13September 7, 2025 6:29 AM

R13 My understanding is that McDonald's somehow thinks it's unfair that they are required to pay their employees minimum wage while higher-end restaurants that have servers (that get tips) are exempt. Some states, like California where I live, have state laws that still require paying minimum wage regardless. The reality is that all restaurants have to guarantee that their employees get minimum wage. They MUST make up the difference if tips don't bring the hourly rate up to the measly $7.25/hour federal minimum wage amount. California requires that all fast-food workers, including McDonald's, pay a minimum wage of $20.00/hour. They still manage to stay in business. We have more fast-food restaurants than we need in San Francisco (including McDonald's and Burger King) even with paying $20.00/hour.

by Anonymousreply 14September 7, 2025 6:55 AM

[quote]The fast-food giant, which has seen its market share shrink in the face of stiff competition from full-service eateries that rely on tipped waiters,

Their market share has shrunk because their food sucks and they get orders wrong 75% of the time. Also, people are on Wegovy and can’t eat this slop.

by Anonymousreply 15September 7, 2025 12:01 PM

You'd think Trump would be looking after his favourite restaurant that serves utter crap.

by Anonymousreply 16September 8, 2025 7:17 AM

I agree with McDonald's on this.

by Anonymousreply 17September 8, 2025 8:39 AM

Okay it’s official, I’m not eating at McDonald’s even once a month. Tip for wait service is a cultural tradition. But more importantly it’s not about their workers, it’s about their bottom line. Never again and I mean it.

by Anonymousreply 18September 8, 2025 9:07 AM

Waiting tables is a skilled occupation and requires experience. Pay them the minimum wage and tips are a reward for how well they do their job. Can the restaurant legally require tip sharing? I think it's a good idea, too. every worker in every industry deserves minimum wage including agricultural workers, nannies, cleaners, etc.

by Anonymousreply 19September 8, 2025 9:46 AM

I’m hatin’ it.

by Anonymousreply 20September 8, 2025 10:47 AM

Fuck McDonalds. I hate their food. I hate the people who especially like their food. I hate the way they've made the world a dumber, uglier place. And I've no sympathy for their downturn in sales and their belief that they should have a right to maximize earnings exploiting vulnerable employees without many work opportunities.

I don't give a fuck if a Big Mac in California costs $7.50 or $27.50.

by Anonymousreply 21September 8, 2025 11:09 AM

Holy fucking shit this is bizarre! For DECADES, McDonalds have been one of the main driving forces behind keeping the minimum wage at poverty levels and hiring child workers so they can pay them as little as possible.

Now they've discovered that minimum wage people can't afford their poisonous food anymore and suddenly - and miraculously - they have moral clarity.

Eventually, all chickens come home to roost.

by Anonymousreply 22September 8, 2025 11:12 AM

[quote]Zuni Cafe now adds a 20% "service charge" to the bill.

Great, so now instead of having the option of giving a 15% tip (which IS the accepted amount for good service), the restaurant will force diners to pay 20% whether the service was good or not. Why don't they just build it into the price of food like they do in Australia and NZ?

by Anonymousreply 23September 8, 2025 11:35 AM

I feel sorry for anyone working at McDonalds. The terrible conditions, being worked like dogs & the abuse they take - oy. I try to never go to McDonalds, but when I do, I'd tip them if that was an option, though I'm sure corporate McDs would find some way to steal it from them.

by Anonymousreply 24September 8, 2025 11:47 AM

[quote]Great, so now instead of having the option of giving a 15% tip (which IS the accepted amount for good service)

R23 is stuck in the 1990s. Restaurant servers must cringe when they see you're seated in their section. "Why did I get stuck with that cheap fat bastard who thinks 15% is acceptable for my good service ?" they shriek in the kitchen. "I just know the new hostess hates me!"

by Anonymousreply 25September 8, 2025 11:53 AM

The BB Bill doesn’t eliminate a tax on tips like Trump promised; it gives a tax deduction on tips that phases out at $25,000. Plus, I believe this will only last 3 years.

Lots of smoke and mirrors

by Anonymousreply 26September 8, 2025 11:56 AM

A deduction on tips up to $25K is still a lot better than paying the full amount on $25K worth of income. Again, the manager at McD's is not getting a break on his first $25K in earnings.

by Anonymousreply 27September 8, 2025 12:05 PM
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