Oldstyle
Platinum Member
- Jul 19, 2011
- 31,206
- 4,935
And my customer base is NOT minimum wage earners, Dubya! People making minimum wage cannot afford to dine out in nice restaurants. When you're on a limited budget you buy inexpensive foods and you cook at home.
Your restaurant can't be that fine if you pay $7 instead of $7.25 for a dishwasher. You still haven't shown how much an increase in minimum wage changes the overall increase in the cost of you doing business. I would guess a minimum wage increase to $9 per hours might add 2% to your cost of doing business, so that $20 steak will now cost $20.40. Big fucking deal!
You're just cheap and one way in your economic views. We don't build an economic system around your restaurant business.
My labor costs run about 35% because we are a fine dining restaurant. The general rule of thumb is that your prime costs (food cost & labor cost) should add up to somewhere in the 60 to 65% range in order to be profitable. If you have 10 employees being paid minimum wage (which is about what we do have) an increase of $1 an hour would mean an increase to our annual labor cost of approximately $20,000...and an increase of the magnitude that you are suggesting, $2 an hour, would cost me around $40,000 per year. That ISN'T small money. It's a lot of money in an industry where the typical profit margin for a fine dining restaurant is in the 4% range.
Do yourself a favor, Dubya...don't try to tell others how THEIR businesses should run when you REALLY don't understand the first thing about the industry that they are in!