More lefties learn the glory of the 15 dollar minimum wage....unemployment.....

[Spare_change]

Let's see if we can put this to bed once and for all ---

1. The average profit for a small business is $66,000/year. An Investigative Report on Franchise Profits
2. The average profit margin is 10.28%. What Is the Average Profit Margin for a Small Business Chron.com
3. Restaurants use what is called the "30-30-30" model. (30% for labor, 30% for materials, 30% for facilities).
4. $66K profit (10% of gross) means approximately $675K in revenue.
5. 30% of revenue (for labor) means available labor dollars of $191.5K/year
6. The average fast food restaurant employs 15.71 workers. Employees per establishment in the U.S. fast food industry 2018 Statistic
7. The median wage for fast food workers is $8.69/hr Fast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industry Center for Labor Research and Education
8. At $8/hour, each worker would be required to work 1,523 hours to earn his/her labor dollars.
9. At $15/hour, each work would be required to work 812 hours to earn his/her salary.

Based on those statistics, the owner would have five choices:

1) Cut the number of hours worked for each employer by 711 hours and hire an additional 7.5 workers to cover the labor hour shortfall, further exacerbating the problem (an additional 7.5 workers would cost approximately $90,000).
2) Increase his labor costs to $280,000/year. ($191K current labor costs + $90,000 new labor costs)
3) Assuming no increase in profit, cost of materials, or cost of facilities, raise his prices to generate a new total revenue of $765K/year, a price increase of 13.3%. ($675K previous revenue + $90,000 in new labor costs)
4) Hold his product price line, sacrifice ALL profit, and still go in the hole $24K)

or:

5) Close his business down, putting everybody out of work.

There are, of course, alternatives - he can reduce the quality of his product, he can close earlier/open later, he can have fewer server people on duty - all of which will negatively impact the customer experience, and drive customers away. Or, as we've seen lately, he can being to automate his processes.

So lets talks real world

The average profit for a small business is $66,000/year.

That doesn't include the employers pay. Better yet, pay your kids and charge them rent.

Restaurants use what is called the "30-30-30" model.

See above. Since I've invested in restaurants your forgetting supplier kickbacks.

Do the math now.

I have a friend that owns a taxicab company in Vegas. Someday I'll tell you how all 16 companies have a 12% operating cost.

1. Actually, it probably does include the 'employer' pay - you're assuming that the owner is working at the restaurant. Even if he were, that is a zero sum game --- either, he pays himself or he pays someone else.

2. Since I've invested, and operated, restaurants, I am very familiar with supplier kickbacks. Believe me, they ARE included in the 30-30-30 model.

3. Apples and oranges --- taxicab companies are different than fast food restaurants. Also, if I remember correctly, taxicab companies use contract employeers - thus, passing all the benefit implications - FICA, taxes, medical, etc - off to the driver. I'm supposed to be convinced that you buy cars, provide fuel, and pay benefits for employees, and have a 12% operating cost? Sorry - I ain't buying that model. Frankly, I strongly suspect your friend is just putting the shaft to his drivers, while getting rich on their backs.

 

[Spare_change]

Lets put to work millions of illegal immigrants first ..... At $25 an hr living wage....... Just think of the spending !

Lol

The average household income for illegal immigrants is $36,000 - I think they are doing just fine. (2007). That's about $18/hour.
A Portrait of Unauthorized Immigrants in the United States Pew Research Center s Hispanic Trends Project

 

[Brain357]

Let's see if we can put this to bed once and for all ---

1. The average profit for a small business is $66,000/year. An Investigative Report on Franchise Profits
2. The average profit margin is 10.28%. What Is the Average Profit Margin for a Small Business Chron.com
3. Restaurants use what is called the "30-30-30" model. (30% for labor, 30% for materials, 30% for facilities).
4. $66K profit (10% of gross) means approximately $675K in revenue.
5. 30% of revenue (for labor) means available labor dollars of $191.5K/year
6. The average fast food restaurant employs 15.71 workers. Employees per establishment in the U.S. fast food industry 2018 Statistic
7. The median wage for fast food workers is $8.69/hr Fast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industry Center for Labor Research and Education
8. At $8/hour, each worker would be required to work 1,523 hours to earn his/her labor dollars.
9. At $15/hour, each work would be required to work 812 hours to earn his/her salary.

Based on those statistics, the owner would have five choices:

1) Cut the number of hours worked for each employer by 711 hours and hire an additional 7.5 workers to cover the labor hour shortfall, further exacerbating the problem (an additional 7.5 workers would cost approximately $90,000).
2) Increase his labor costs to $280,000/year. ($191K current labor costs + $90,000 new labor costs)
3) Assuming no increase in profit, cost of materials, or cost of facilities, raise his prices to generate a new total revenue of $765K/year, a price increase of 13.3%. ($675K previous revenue + $90,000 in new labor costs)
4) Hold his product price line, sacrifice ALL profit, and still go in the hole $24K)

or:

5) Close his business down, putting everybody out of work.

There are, of course, alternatives - he can reduce the quality of his product, he can close earlier/open later, he can have fewer server people on duty - all of which will negatively impact the customer experience, and drive customers away. Or, as we've seen lately, he can being to automate his processes.

So lets talks real world

The average profit for a small business is $66,000/year.

That doesn't include the employers pay. Better yet, pay your kids and charge them rent.

Restaurants use what is called the "30-30-30" model.

See above. Since I've invested in restaurants your forgetting supplier kickbacks.

Do the math now.

I have a friend that owns a taxicab company in Vegas. Someday I'll tell you how all 16 companies have a 12% operating cost.

1. Actually, it probably does include the 'employer' pay - you're assuming that the owner is working at the restaurant. Even if he were, that is a zero sum game --- either, he pays himself or he pays someone else.

2. Since I've invested, and operated, restaurants, I am very familiar with supplier kickbacks. Believe me, they ARE included in the 30-30-30 model.

3. Apples and oranges --- taxicab companies are different than fast food restaurants. Also, if I remember correctly, taxicab companies use contract employeers - thus, passing all the benefit implications - FICA, taxes, medical, etc - off to the driver. I'm supposed to be convinced that you buy cars, provide fuel, and pay benefits for employees, and have a 12% operating cost? Sorry - I ain't buying that model. Frankly, I strongly suspect your friend is just putting the shaft to his drivers, while getting rich on their backs.

Why would you assume no increase in profit? Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

You are aware that we have increased minimum wage many times and unemployment has not increased right?

 

[Toddsterpatriot]

Let's see if we can put this to bed once and for all ---

1. The average profit for a small business is $66,000/year. An Investigative Report on Franchise Profits
2. The average profit margin is 10.28%. What Is the Average Profit Margin for a Small Business Chron.com
3. Restaurants use what is called the "30-30-30" model. (30% for labor, 30% for materials, 30% for facilities).
4. $66K profit (10% of gross) means approximately $675K in revenue.
5. 30% of revenue (for labor) means available labor dollars of $191.5K/year
6. The average fast food restaurant employs 15.71 workers. Employees per establishment in the U.S. fast food industry 2018 Statistic
7. The median wage for fast food workers is $8.69/hr Fast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industry Center for Labor Research and Education
8. At $8/hour, each worker would be required to work 1,523 hours to earn his/her labor dollars.
9. At $15/hour, each work would be required to work 812 hours to earn his/her salary.

Based on those statistics, the owner would have five choices:

1) Cut the number of hours worked for each employer by 711 hours and hire an additional 7.5 workers to cover the labor hour shortfall, further exacerbating the problem (an additional 7.5 workers would cost approximately $90,000).
2) Increase his labor costs to $280,000/year. ($191K current labor costs + $90,000 new labor costs)
3) Assuming no increase in profit, cost of materials, or cost of facilities, raise his prices to generate a new total revenue of $765K/year, a price increase of 13.3%. ($675K previous revenue + $90,000 in new labor costs)
4) Hold his product price line, sacrifice ALL profit, and still go in the hole $24K)

or:

5) Close his business down, putting everybody out of work.

There are, of course, alternatives - he can reduce the quality of his product, he can close earlier/open later, he can have fewer server people on duty - all of which will negatively impact the customer experience, and drive customers away. Or, as we've seen lately, he can being to automate his processes.

So lets talks real world

The average profit for a small business is $66,000/year.

That doesn't include the employers pay. Better yet, pay your kids and charge them rent.

Restaurants use what is called the "30-30-30" model.

See above. Since I've invested in restaurants your forgetting supplier kickbacks.

Do the math now.

I have a friend that owns a taxicab company in Vegas. Someday I'll tell you how all 16 companies have a 12% operating cost.

1. Actually, it probably does include the 'employer' pay - you're assuming that the owner is working at the restaurant. Even if he were, that is a zero sum game --- either, he pays himself or he pays someone else.

2. Since I've invested, and operated, restaurants, I am very familiar with supplier kickbacks. Believe me, they ARE included in the 30-30-30 model.

3. Apples and oranges --- taxicab companies are different than fast food restaurants. Also, if I remember correctly, taxicab companies use contract employeers - thus, passing all the benefit implications - FICA, taxes, medical, etc - off to the driver. I'm supposed to be convinced that you buy cars, provide fuel, and pay benefits for employees, and have a 12% operating cost? Sorry - I ain't buying that model. Frankly, I strongly suspect your friend is just putting the shaft to his drivers, while getting rich on their backs.

Why would you assume no increase in profit? Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

You are aware that we have increased minimum wage many times and unemployment has not increased right?

Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

Assume the 10% profit number above is correct.
Now you increase labor costs by $90,000.
Workers spend the entire $90,000 on Big Macs.
Giving the company $9000 in profits.
$90,000 - $9000 = an $81,000 reduction in net profits.

Gee, I wonder why business owners aren't excited about your ideas?

 

[Spare_change]

Let's see if we can put this to bed once and for all ---

1. The average profit for a small business is $66,000/year. An Investigative Report on Franchise Profits
2. The average profit margin is 10.28%. What Is the Average Profit Margin for a Small Business Chron.com
3. Restaurants use what is called the "30-30-30" model. (30% for labor, 30% for materials, 30% for facilities).
4. $66K profit (10% of gross) means approximately $675K in revenue.
5. 30% of revenue (for labor) means available labor dollars of $191.5K/year
6. The average fast food restaurant employs 15.71 workers. Employees per establishment in the U.S. fast food industry 2018 Statistic
7. The median wage for fast food workers is $8.69/hr Fast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industry Center for Labor Research and Education
8. At $8/hour, each worker would be required to work 1,523 hours to earn his/her labor dollars.
9. At $15/hour, each work would be required to work 812 hours to earn his/her salary.

Based on those statistics, the owner would have five choices:

1) Cut the number of hours worked for each employer by 711 hours and hire an additional 7.5 workers to cover the labor hour shortfall, further exacerbating the problem (an additional 7.5 workers would cost approximately $90,000).
2) Increase his labor costs to $280,000/year. ($191K current labor costs + $90,000 new labor costs)
3) Assuming no increase in profit, cost of materials, or cost of facilities, raise his prices to generate a new total revenue of $765K/year, a price increase of 13.3%. ($675K previous revenue + $90,000 in new labor costs)
4) Hold his product price line, sacrifice ALL profit, and still go in the hole $24K)

or:

5) Close his business down, putting everybody out of work.

There are, of course, alternatives - he can reduce the quality of his product, he can close earlier/open later, he can have fewer server people on duty - all of which will negatively impact the customer experience, and drive customers away. Or, as we've seen lately, he can being to automate his processes.

So lets talks real world

The average profit for a small business is $66,000/year.

That doesn't include the employers pay. Better yet, pay your kids and charge them rent.

Restaurants use what is called the "30-30-30" model.

See above. Since I've invested in restaurants your forgetting supplier kickbacks.

Do the math now.

I have a friend that owns a taxicab company in Vegas. Someday I'll tell you how all 16 companies have a 12% operating cost.

1. Actually, it probably does include the 'employer' pay - you're assuming that the owner is working at the restaurant. Even if he were, that is a zero sum game --- either, he pays himself or he pays someone else.

2. Since I've invested, and operated, restaurants, I am very familiar with supplier kickbacks. Believe me, they ARE included in the 30-30-30 model.

3. Apples and oranges --- taxicab companies are different than fast food restaurants. Also, if I remember correctly, taxicab companies use contract employeers - thus, passing all the benefit implications - FICA, taxes, medical, etc - off to the driver. I'm supposed to be convinced that you buy cars, provide fuel, and pay benefits for employees, and have a 12% operating cost? Sorry - I ain't buying that model. Frankly, I strongly suspect your friend is just putting the shaft to his drivers, while getting rich on their backs.

Why would you assume no increase in profit? Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

You are aware that we have increased minimum wage many times and unemployment has not increased right?

There's a significant difference between a 15% raise in the minimum wage and a 90% increase. That is not linear ----

 

[Brain357]

Let's see if we can put this to bed once and for all ---

1. The average profit for a small business is $66,000/year. An Investigative Report on Franchise Profits
2. The average profit margin is 10.28%. What Is the Average Profit Margin for a Small Business Chron.com
3. Restaurants use what is called the "30-30-30" model. (30% for labor, 30% for materials, 30% for facilities).
4. $66K profit (10% of gross) means approximately $675K in revenue.
5. 30% of revenue (for labor) means available labor dollars of $191.5K/year
6. The average fast food restaurant employs 15.71 workers. Employees per establishment in the U.S. fast food industry 2018 Statistic
7. The median wage for fast food workers is $8.69/hr Fast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industry Center for Labor Research and Education
8. At $8/hour, each worker would be required to work 1,523 hours to earn his/her labor dollars.
9. At $15/hour, each work would be required to work 812 hours to earn his/her salary.

Based on those statistics, the owner would have five choices:

1) Cut the number of hours worked for each employer by 711 hours and hire an additional 7.5 workers to cover the labor hour shortfall, further exacerbating the problem (an additional 7.5 workers would cost approximately $90,000).
2) Increase his labor costs to $280,000/year. ($191K current labor costs + $90,000 new labor costs)
3) Assuming no increase in profit, cost of materials, or cost of facilities, raise his prices to generate a new total revenue of $765K/year, a price increase of 13.3%. ($675K previous revenue + $90,000 in new labor costs)
4) Hold his product price line, sacrifice ALL profit, and still go in the hole $24K)

or:

5) Close his business down, putting everybody out of work.

There are, of course, alternatives - he can reduce the quality of his product, he can close earlier/open later, he can have fewer server people on duty - all of which will negatively impact the customer experience, and drive customers away. Or, as we've seen lately, he can being to automate his processes.

So lets talks real world

The average profit for a small business is $66,000/year.

That doesn't include the employers pay. Better yet, pay your kids and charge them rent.

Restaurants use what is called the "30-30-30" model.

See above. Since I've invested in restaurants your forgetting supplier kickbacks.

Do the math now.

I have a friend that owns a taxicab company in Vegas. Someday I'll tell you how all 16 companies have a 12% operating cost.

1. Actually, it probably does include the 'employer' pay - you're assuming that the owner is working at the restaurant. Even if he were, that is a zero sum game --- either, he pays himself or he pays someone else.

2. Since I've invested, and operated, restaurants, I am very familiar with supplier kickbacks. Believe me, they ARE included in the 30-30-30 model.

3. Apples and oranges --- taxicab companies are different than fast food restaurants. Also, if I remember correctly, taxicab companies use contract employeers - thus, passing all the benefit implications - FICA, taxes, medical, etc - off to the driver. I'm supposed to be convinced that you buy cars, provide fuel, and pay benefits for employees, and have a 12% operating cost? Sorry - I ain't buying that model. Frankly, I strongly suspect your friend is just putting the shaft to his drivers, while getting rich on their backs.

Why would you assume no increase in profit? Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

You are aware that we have increased minimum wage many times and unemployment has not increased right?

Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

Assume the 10% profit number above is correct.
Now you increase labor costs by $90,000.
Workers spend the entire $90,000 on Big Macs.
Giving the company $9000 in profits.
$90,000 - $9000 = an $81,000 reduction in net profits.

Gee, I wonder why business owners aren't excited about your ideas?

Ummm.... you are forgetting about customers. Customers are getting a pay increase, not just workers.

And really who thinks it's going to increase to $15 in one year? Even Seattle is taking years to increase to that amount.

 

[Brain357]

Let's see if we can put this to bed once and for all ---

1. The average profit for a small business is $66,000/year. An Investigative Report on Franchise Profits
2. The average profit margin is 10.28%. What Is the Average Profit Margin for a Small Business Chron.com
3. Restaurants use what is called the "30-30-30" model. (30% for labor, 30% for materials, 30% for facilities).
4. $66K profit (10% of gross) means approximately $675K in revenue.
5. 30% of revenue (for labor) means available labor dollars of $191.5K/year
6. The average fast food restaurant employs 15.71 workers. Employees per establishment in the U.S. fast food industry 2018 Statistic
7. The median wage for fast food workers is $8.69/hr Fast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industry Center for Labor Research and Education
8. At $8/hour, each worker would be required to work 1,523 hours to earn his/her labor dollars.
9. At $15/hour, each work would be required to work 812 hours to earn his/her salary.

Based on those statistics, the owner would have five choices:

1) Cut the number of hours worked for each employer by 711 hours and hire an additional 7.5 workers to cover the labor hour shortfall, further exacerbating the problem (an additional 7.5 workers would cost approximately $90,000).
2) Increase his labor costs to $280,000/year. ($191K current labor costs + $90,000 new labor costs)
3) Assuming no increase in profit, cost of materials, or cost of facilities, raise his prices to generate a new total revenue of $765K/year, a price increase of 13.3%. ($675K previous revenue + $90,000 in new labor costs)
4) Hold his product price line, sacrifice ALL profit, and still go in the hole $24K)

or:

5) Close his business down, putting everybody out of work.

There are, of course, alternatives - he can reduce the quality of his product, he can close earlier/open later, he can have fewer server people on duty - all of which will negatively impact the customer experience, and drive customers away. Or, as we've seen lately, he can being to automate his processes.

So lets talks real world

The average profit for a small business is $66,000/year.

That doesn't include the employers pay. Better yet, pay your kids and charge them rent.

Restaurants use what is called the "30-30-30" model.

See above. Since I've invested in restaurants your forgetting supplier kickbacks.

Do the math now.

I have a friend that owns a taxicab company in Vegas. Someday I'll tell you how all 16 companies have a 12% operating cost.

1. Actually, it probably does include the 'employer' pay - you're assuming that the owner is working at the restaurant. Even if he were, that is a zero sum game --- either, he pays himself or he pays someone else.

2. Since I've invested, and operated, restaurants, I am very familiar with supplier kickbacks. Believe me, they ARE included in the 30-30-30 model.

3. Apples and oranges --- taxicab companies are different than fast food restaurants. Also, if I remember correctly, taxicab companies use contract employeers - thus, passing all the benefit implications - FICA, taxes, medical, etc - off to the driver. I'm supposed to be convinced that you buy cars, provide fuel, and pay benefits for employees, and have a 12% operating cost? Sorry - I ain't buying that model. Frankly, I strongly suspect your friend is just putting the shaft to his drivers, while getting rich on their backs.

Why would you assume no increase in profit? Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

You are aware that we have increased minimum wage many times and unemployment has not increased right?

There's a significant difference between a 15% raise in the minimum wage and a 90% increase. That is not linear ----

You'd have to be pretty foolish to think it is going to be 90%, especially in one year.

 

[Spare_change]

The length of implementation is a moot point --- the financial impact is the same

 

[Brain357]

The length of implementation is a moot point --- the financial impact is the same

Hardly. More time gives the business more time to grow and increase profits to cover increased labor. Also increasing pricing a little each year would be far more acceptable to customers.

 

[OnePercenter]

My plan would reduce small business costs for employees and taxes to 30%. That's a 15%-30% drop.

My plan would put BILLIONS into the economy daily.

My plan would put the $100 trillion plus currently owned by corporate America back into the economy.

My plan would end all welfare.

My plan would significantly increase social security and pension payments.

My plan would hold prices for 10 years, thus eliminating inflation.

Tell the Koch Brothers you failed them again!

-Base Federal tax for corporations at 30% of revenue.

-Raise minimum wage to $23.50/hr. Based on where minimum wage should be using 1970-2013 rise in food, shelter, and transportation.

-Eliminate all business subsidies (deductions/write-offs/write-downs) except for employee expenses which are deducted dollar-for-dollar on all city, state, and Federal taxes and fees with the Feds refunding city, State, and fees.

-Companies with 400 employees or less, employee expenses above the deduction are subsidized at 100% with funds usually give back to the States.

-Adjust Social Security and private/public retirement and pension payments using 1970-2015 price structure.

-Remove the FICA limit.

-Back down ALL costs, prices, fees, to January 1, 2009 levels and hold them for 10 years which will eliminate inflation.

-Recall ALL off-shore investments tax free, and disallow any further off-shore investments.

-Make inversion illegal.

Good luck with that fantastic idiocy....

Vote out Republicans and help your Kids and Grand Kids.

Like dems helped the kiddies of baltimore, detroit, new orleans, philly, chicago etc??? Lol

You can start by doing your part in voting out all Republicans and putting the middle class back to work at livable wages.

All the Republicans were voted out of Baltimore, Detroit, New Orleans, Philly and Chicago. How's the black unemployment rate in those cities now?

The issue is what Republicans have done to the middle class from 1970 until today.

 

[OnePercenter]

Lets put to work millions of illegal immigrants first ..... At $25 an hr living wage....... Just think of the spending !

Lol

Republicans hate Obama because he's deported a record number of their cheap labor.

 

[Toddsterpatriot]

Let's see if we can put this to bed once and for all ---

1. The average profit for a small business is $66,000/year. An Investigative Report on Franchise Profits
2. The average profit margin is 10.28%. What Is the Average Profit Margin for a Small Business Chron.com
3. Restaurants use what is called the "30-30-30" model. (30% for labor, 30% for materials, 30% for facilities).
4. $66K profit (10% of gross) means approximately $675K in revenue.
5. 30% of revenue (for labor) means available labor dollars of $191.5K/year
6. The average fast food restaurant employs 15.71 workers. Employees per establishment in the U.S. fast food industry 2018 Statistic
7. The median wage for fast food workers is $8.69/hr Fast Food Poverty Wages The Public Cost of Low-Wage Jobs in the Fast-Food Industry Center for Labor Research and Education
8. At $8/hour, each worker would be required to work 1,523 hours to earn his/her labor dollars.
9. At $15/hour, each work would be required to work 812 hours to earn his/her salary.

Based on those statistics, the owner would have five choices:

1) Cut the number of hours worked for each employer by 711 hours and hire an additional 7.5 workers to cover the labor hour shortfall, further exacerbating the problem (an additional 7.5 workers would cost approximately $90,000).
2) Increase his labor costs to $280,000/year. ($191K current labor costs + $90,000 new labor costs)
3) Assuming no increase in profit, cost of materials, or cost of facilities, raise his prices to generate a new total revenue of $765K/year, a price increase of 13.3%. ($675K previous revenue + $90,000 in new labor costs)
4) Hold his product price line, sacrifice ALL profit, and still go in the hole $24K)

or:

5) Close his business down, putting everybody out of work.

There are, of course, alternatives - he can reduce the quality of his product, he can close earlier/open later, he can have fewer server people on duty - all of which will negatively impact the customer experience, and drive customers away. Or, as we've seen lately, he can being to automate his processes.

So lets talks real world

The average profit for a small business is $66,000/year.

That doesn't include the employers pay. Better yet, pay your kids and charge them rent.

Restaurants use what is called the "30-30-30" model.

See above. Since I've invested in restaurants your forgetting supplier kickbacks.

Do the math now.

I have a friend that owns a taxicab company in Vegas. Someday I'll tell you how all 16 companies have a 12% operating cost.

1. Actually, it probably does include the 'employer' pay - you're assuming that the owner is working at the restaurant. Even if he were, that is a zero sum game --- either, he pays himself or he pays someone else.

2. Since I've invested, and operated, restaurants, I am very familiar with supplier kickbacks. Believe me, they ARE included in the 30-30-30 model.

3. Apples and oranges --- taxicab companies are different than fast food restaurants. Also, if I remember correctly, taxicab companies use contract employeers - thus, passing all the benefit implications - FICA, taxes, medical, etc - off to the driver. I'm supposed to be convinced that you buy cars, provide fuel, and pay benefits for employees, and have a 12% operating cost? Sorry - I ain't buying that model. Frankly, I strongly suspect your friend is just putting the shaft to his drivers, while getting rich on their backs.

Why would you assume no increase in profit? Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

You are aware that we have increased minimum wage many times and unemployment has not increased right?

Everyone making min wage is getting a pay increase. Fast food is very popular with low income people. Business would obviously increase.

Assume the 10% profit number above is correct.
Now you increase labor costs by $90,000.
Workers spend the entire $90,000 on Big Macs.
Giving the company $9000 in profits.
$90,000 - $9000 = an $81,000 reduction in net profits.

Gee, I wonder why business owners aren't excited about your ideas?

Ummm.... you are forgetting about customers. Customers are getting a pay increase, not just workers.

And really who thinks it's going to increase to $15 in one year? Even Seattle is taking years to increase to that amount.

Ummm.... you are forgetting about customers. Customers are getting a pay increase, not just workers.

No I'm not. If these extra customers also get a raise and only spend it on fast food, their own employers will see additional costs with no increase in revenues.
Kinda kills your original claim.

 

[Toddsterpatriot]

That's awesome!
Maybe you can help me?
My business bought $900,000 worth of inventory and sold it for $1,000,000.
What is my business profit?

What period of time did this occur?

2014.

What was your operating cost?

Have you figured out my business profit yet?

 

[Spare_change]

The length of implementation is a moot point --- the financial impact is the same

Hardly. More time gives the business more time to grow and increase profits to cover increased labor. Also increasing pricing a little each year would be far more acceptable to customers.

Their prices go up, their service goes down --- and you anticipate business growth? Seriously?

 

[Flopper]

Businesses like people are different. Some look for ways of increasing revenue, others look for ways of reducing cost. Others do nothing and absorb the cost.

Smart business owners are continually seeking additional revenue streams.

I own the leasing company that leases vehicles and equipment to my company AND my competitors.

I own two of the suppliers that supply equipment to my company AND my competitors.

I own the maintenance company that maintains and leases space on towers that my company AND my competitors erected.

....and I'm still not done.

Since 4 out of 5 businesses fail in the first 5 years, obviously all business owners aren't as savvy as you.

 

[Flopper]

Anybody generally supportive of an inflation-indexed minimum wage adjusted every 5 years? I'm seeing a lot of "hike it into the stratosphere" and a lot of "keep it where it is" from sampling posts, not a lot of middle ground.

There of 10 states,AZ, CO, FL, MO, MT, NJ, NV, OH, OR, and WA that index minimum wage to inflation. Senate Democrats are proposing this.

That's simply pandering - paying lip service without fixing the problem.

That would depend on what you mean by fixing the problem.

 

[thereisnospoon]

Here are more people being enlightened with basic economics.....

Seattle Minimum Wage Kills Jobs Hurts Students PJ Tatler

Students at the University of Washington in Tacoma are getting an object lesson in the value of a dollar. As economic dominoes fall in the wake of a municipal minimum wage hike to $15 per hour in Seattle, university students find themselves digging deeper into their pockets to cover higher prices resulting from the mandate.




Elsewhere, small-business employees initially thrilled by the “raise” granted them by the city have since learned that they’ll be losing their jobs later this year. Red Alert Politics reports:


[Z Pizza] owner Ritu Shah Burnham said she just can’t afford the city’s mandated wage hikes.


“I’ve let one person go since April 1, I’ve cut hours since April 1, I’ve taken them myself because I don’t pay myself,” she told Q13. “I’ve also raised my prices a little bit, there’s no other way to do it.”

Just business 101. Labor is a big cost of doing business. If you don't want to pay your workers a living wage, then close the doors and do something else with your life. Well, business owners can always hire cheap illegal immigrant labor. They'll work for $20.00 a day, which is twice what they earned in their home country. Either pay workers a living wage, or hire illegal immigrant labor, a very simple choice. Or, just close the doors and retire with all the money cheap labor enabled you to make over the years.

And then what? What do the low/no skill workers do then?
Or is it your goal to put people out of business "just because"?
You see, this ridiculous artificial wage increase will hurt everyone. The workers even more so..
Go ahead. Let your class envy rage get the best of you.

 

[Spare_change]

Anybody generally supportive of an inflation-indexed minimum wage adjusted every 5 years? I'm seeing a lot of "hike it into the stratosphere" and a lot of "keep it where it is" from sampling posts, not a lot of middle ground.

There of 10 states,AZ, CO, FL, MO, MT, NJ, NV, OH, OR, and WA that index minimum wage to inflation. Senate Democrats are proposing this.

That's simply pandering - paying lip service without fixing the problem.

That would depend on what you mean by fixing the problem.

History has shown that tying wage increases to inflation has been ineffective, and actually contributes to the problem, rather than fixing it. Congressmen proposing to do that are merely pretending to care about fixing the problem.

 

[OnePercenter]

[
1. Actually, it probably does include the 'employer' pay - you're assuming that the owner is working at the restaurant. Even if he were, that is a zero sum game --- either, he pays himself or he pays someone else.

2. Since I've invested, and operated, restaurants, I am very familiar with supplier kickbacks. Believe me, they ARE included in the 30-30-30 model.

3. Apples and oranges --- taxicab companies are different than fast food restaurants. Also, if I remember correctly, taxicab companies use contract employeers - thus, passing all the benefit implications - FICA, taxes, medical, etc - off to the driver. I'm supposed to be convinced that you buy cars, provide fuel, and pay benefits for employees, and have a 12% operating cost? Sorry - I ain't buying that model. Frankly, I strongly suspect your friend is just putting the shaft to his drivers, while getting rich on their backs.

1. Since when do employers have to show up to receive a paycheck. Goes for employers wives, children, girl friends, and sugar babies.

2. Why would you include cash in the 30?

3. All business is intrinsically the same. My use of Vegas taxicab companies goes to my contention that for businesses to succeed there needs to be additional revenue streams.

I'll give you some information about Vegas.

All Cab Drivers in Clark County, Nevada are by law commissioned employees of the cab companies.

Cab Drivers pay employers 0.65 per trip in a trip tax.

Cab Drivers pay fuel costs.

Cab companies pay nothing (including maintenance) for their vehicles due to contracts with test companies or vehicle manufactures.

Here's an example



A 200 car cab company grosses $40M/yr from ride revenues, $2M from trip charges, $8M from advertising revenue, and $1.5M from credit card fees,

Now, do the math.

Additional revenue streams for restaurants?

Catering
Bakery
Partnering with wedding coordinators.
Bar
Night Club
Food truck
Food cart
Shipping - My two favorites are Rendezvous Restaurant and Peter Lugers.

 

[OnePercenter]

That's awesome!
Maybe you can help me?
My business bought $900,000 worth of inventory and sold it for $1,000,000.
What is my business profit?

What period of time did this occur?

2014.

What was your operating cost?

Have you figured out my business profit yet?

You drop ship everything and net $80K/yr.