healthmyths
Platinum Member
- Sep 19, 2011
- 29,043
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So far not one of the $15 minimum wage supporter has refuted these numbers.
A small restaurant owner grosses $500,000 a year and
A) pays out 36% or $180,000 in wages/labor costs
B) pays out 30% or $150,000 in food
C) Pays out 30% or $150,000 for rent,utilities,permits, taxes,etc...
A total costs of $480,000 leaving
profit for the owner $20,000 net income...
BUT what happens if labor costs jump to 50% of the revenue or $250,000 BUT the revenue stays at $500,000?
Food costs stay the same... $150,000 so does other costs rent,etc. $150,000
Add Labor - $250,000
Add food - 150,000
Add Other - 150,000
Total $550,000
BUT WAIT... the gross revenue stayed the same $500,000.
Far from a profit of $20,000 the owner now because his labor costs jumped to 50% of revenue, has to make up out of OWN pocket, $50,000 in losses!
Doesn't take a rocket scientist to see...hmmm no profit, but losses all because my labor costs go up.
Minimum wage supporters.. UNITE! Refute the above numbers!
A small restaurant owner grosses $500,000 a year and
A) pays out 36% or $180,000 in wages/labor costs
B) pays out 30% or $150,000 in food
C) Pays out 30% or $150,000 for rent,utilities,permits, taxes,etc...
A total costs of $480,000 leaving
profit for the owner $20,000 net income...
BUT what happens if labor costs jump to 50% of the revenue or $250,000 BUT the revenue stays at $500,000?
Food costs stay the same... $150,000 so does other costs rent,etc. $150,000
Add Labor - $250,000
Add food - 150,000
Add Other - 150,000
Total $550,000
BUT WAIT... the gross revenue stayed the same $500,000.
Far from a profit of $20,000 the owner now because his labor costs jumped to 50% of revenue, has to make up out of OWN pocket, $50,000 in losses!
Doesn't take a rocket scientist to see...hmmm no profit, but losses all because my labor costs go up.
Minimum wage supporters.. UNITE! Refute the above numbers!