Managerial Economics
EXECUTIVE SUMMARY
The Minimum Wage Ordinance Cap. 608 is an ordinance enacted by the Legislative Council of Hong Kong to introduce a minimum wage in Hong Kong in July 2010. The executive branch proposed a minimum wage of HK$30 (~US$3.871) per hour in November 2010, which the Legislative Council voted to accept after much debate in January 2011. It came into effect on 1 May 2011. Prior to this, there had also been a fixed minimum wage for one specific class of workers, foreign domestic helpers, of HK$3,740/month.
In this report, we will look extensively at how the introductions of standard working hours to better protect the health of workers and improve their family and social life. On the other hand, employers are concerned that the introduction of standard working hours would undermine the flexibility of the labour market and the competitiveness of Hong Kong.
We will look at how the introduction of the Statutory Minimum Wage (SMW) in May 2011, and the upcoming Statutory Working Hour (SWH) will have affect on Fast Food chain industry, in our particular case; Fairwood (Chinese: 大快活).
TABLE OF CONTENTS
Executive Summary 1
Table of Contents 2
1. Introduction 3
2. Literature Review and Industrial Background 4
2.1 Literature Review
2.2 Literature Background 5
3. Methodology 6
3.1 Research Questions
3.2 Research Design
4. Discussions and Analysis 7
4.1 Market Structure of Fast Food restaurant chain industry
4.2 The Impacts of SMW and SWH on Cost Structure 8
4.3 Effects of SMW and SWH legislations on prices and business 11 hours of Fast Food restaurant chain industry
5. Conclusion and Recommendations 13
6. References 15
1. Introduction
Since the debut introduction of the Statutory Minimum Wage (SMW) in May 2011, according to the Census and Statistics Department Reports, the median monthly wage for Fast Food
The Minimum Wage Ordinance Cap. 608 is an ordinance enacted by the Legislative Council of Hong Kong to introduce a minimum wage in Hong Kong in July 2010. The executive branch proposed a minimum wage of HK$30 (~US$3.871) per hour in November 2010, which the Legislative Council voted to accept after much debate in January 2011. It came into effect on 1 May 2011. Prior to this, there had also been a fixed minimum wage for one specific class of workers, foreign domestic helpers, of HK$3,740/month.
In this report, we will look extensively at how the introductions of standard working hours to better protect the health of workers and improve their family and social life. On the other hand, employers are concerned that the introduction of standard working hours would undermine the flexibility of the labour market and the competitiveness of Hong Kong.
We will look at how the introduction of the Statutory Minimum Wage (SMW) in May 2011, and the upcoming Statutory Working Hour (SWH) will have affect on Fast Food chain industry, in our particular case; Fairwood (Chinese: 大快活).
TABLE OF CONTENTS
Executive Summary 1
Table of Contents 2
1. Introduction 3
2. Literature Review and Industrial Background 4
2.1 Literature Review
2.2 Literature Background 5
3. Methodology 6
3.1 Research Questions
3.2 Research Design
4. Discussions and Analysis 7
4.1 Market Structure of Fast Food restaurant chain industry
4.2 The Impacts of SMW and SWH on Cost Structure 8
4.3 Effects of SMW and SWH legislations on prices and business 11 hours of Fast Food restaurant chain industry
5. Conclusion and Recommendations 13
6. References 15
1. Introduction
Since the debut introduction of the Statutory Minimum Wage (SMW) in May 2011, according to the Census and Statistics Department Reports, the median monthly wage for Fast Food