Restaurant die-off is first course of California’s $15 minimum wage

[Admiral Rockwell Tory]

Restaurants rarely go out of business because of price. If the food is good, people will go there to eat. Restaurants fail all the time. Price of food is at the very bottom of the list of reasons of failure.

Asking business owners to pay people a livable wage isn't unreasonable. If a business owner cannot afford to pay people a livable wage, then perhaps they shouldn't be running a business.

Another one against jobs


.

I'm not against jobs, but you have to pay people a livable wage.

What exactly is a livable wage?

 

[Divine Wind]

I haven't notice a mass exodus from CA. Every month our home appreciates, and homes marketed at over 7 figures in my zip code are routinely sold for more than the asking price.

Every day we get notices in the mall from realators asking us to list our home, the market here is hot and our equity continues to grow.

You must be young because I remember at least two in the past 40 years. The last one was after the Cold War ended. Both Colorado and Texas have benefited from businesses and employers fleeing the PRC.

Californians Moving to Texas Hits Highest Level in Nine Years

There are Californians leaving California- and others coming here- more coming than leaving.

Which is why real estate prices are sky rocketing. Increased demand- higher prices.

Good for those of us who have lived here for a long time- hard on those whose housing isn't stable.

So why would anyone go to a state with unstable housing?

BTW, you're either fooling yourself on those numbers or smoking too much Golden State weed.

Golden state population trends | first tuesday Journal
California’s population grew at a rate of 0.7% in 2016. While still positive, this continues a downward trend in growth rate from the prior year. The annual rate of population growth is usually closer to 1%.

County-level data released in July 2016 show population increases in all of California’s most populous counties. However, reflecting the statewide trend, annual growth was lower than the prior year in each of these counties. Among the ten largest counties, Alameda, Contra Costa and Riverside Counties saw the highest growth from 2014 to 2015. The lowest population growth rate took place in Los Angeles County, which increased just 0.5% in 2015.

Steady population growth is essential for a long-term, stable housing market. The rate of California’s population growth, while continuing up, is forecasted to vary in step with other economic and political factors, bringing with it new household formations and demand for residential rentals and sales.

 

[Divine Wind]

Restaurants rarely go out of business because of price. If the food is good, people will go there to eat. Restaurants fail all the time. Price of food is at the very bottom of the list of reasons of failure.

Asking business owners to pay people a livable wage isn't unreasonable. If a business owner cannot afford to pay people a livable wage, then perhaps they shouldn't be running a business.

Another one against jobs


.

I'm not against jobs, but you have to pay people a livable wage.

Or else? Or just what the market will bear?

It's one thing for San Francisco to mandate a "livable wage" by making $15 the minimum wage. It's another for the State of California to mandate a $15 minimum wage for small towns and businesses in the rural areas of California. All that does is drive businesses to downsize or go under.

 

[Admiral Rockwell Tory]

Restaurants rarely go out of business because of price. If the food is good, people will go there to eat. Restaurants fail all the time. Price of food is at the very bottom of the list of reasons of failure.

Asking business owners to pay people a livable wage isn't unreasonable. If a business owner cannot afford to pay people a livable wage, then perhaps they shouldn't be running a business.

Again with the livable qualifier. I had low paying jobs but lived within my means. I'm still here so I obviously lived. Nobody owes you a living. Want more pay? Work your way up or get a better job.

No one can live on a $8 an hour without getting a second job or receiving government assistance.

You know what, fine. Keep the current minium wage but conservatives shouldn't whine about people receiving government subsidies like section 8, food stamps and medicade.

Either increase the minium wage or give people subsidies.

If you are working for $8 an hour, you dropped out of school or have no marketable job skills. If that is the case, you should still be living in your parent's basement and be on their insurance.

 

[Syriusly]

I haven't notice a mass exodus from CA. Every month our home appreciates, and homes marketed at over 7 figures in my zip code are routinely sold for more than the asking price.

Every day we get notices in the mall from realators asking us to list our home, the market here is hot and our equity continues to grow.

You must be young because I remember at least two in the past 40 years. The last one was after the Cold War ended. Both Colorado and Texas have benefited from businesses and employers fleeing the PRC.

Californians Moving to Texas Hits Highest Level in Nine Years

There are Californians leaving California- and others coming here- more coming than leaving.

Which is why real estate prices are sky rocketing. Increased demand- higher prices.

Good for those of us who have lived here for a long time- hard on those whose housing isn't stable.

So why would anyone go to a state with unstable housing?

BTW, you're either fooling yourself on those numbers or smoking too much Golden State weed.

Golden state population trends | first tuesday Journal
California’s population grew at a rate of 0.7% in 2016. While still positive, this continues a downward trend in growth rate from the prior year. The annual rate of population growth is usually closer to 1%.

County-level data released in July 2016 show population increases in all of California’s most populous counties. However, reflecting the statewide trend, annual growth was lower than the prior year in each of these counties. Among the ten largest counties, Alameda, Contra Costa and Riverside Counties saw the highest growth from 2014 to 2015. The lowest population growth rate took place in Los Angeles County, which increased just 0.5% in 2015.

Steady population growth is essential for a long-term, stable housing market. The rate of California’s population growth, while continuing up, is forecasted to vary in step with other economic and political factors, bringing with it new household formations and demand for residential rentals and sales.

While still positive, this continues a downward trend in growth rate from the prior year.

Okay- tell me- why have home values skyrocketed? Business real estate prices sky rocketed?

Yes- skyrocketing home prices are keeping people away- but the reason for the sky rocketing prices is pretty simple- higher demand than inventory.

 

[danielpalos]

Maybe they should not pass the wage increase on to the consumer. Sooner or later these business owners need to take the hit.

There it is folks, exactly how the left views business owners. They have this bizarre idea that all business owners just need to write bigger checks, and their own personal wealth will cover things.

Fucking amazing.

They will when people stop going to their restaurant because the prices are too expensive. Capitalism isn't a left sided mindset.

Proving how stupid you really are?



.

How do you get "top poster of the month" with the stupid shit you post?

Raise the prices enough and people will stop going and will start eating at home.

How will the employees buy their food to eat at home if they are unemployed?

Food stamps!

Our current president wants to cut foodstamps.

 

[Divine Wind]

Restaurants rarely go out of business because of price. If the food is good, people will go there to eat. Restaurants fail all the time. Price of food is at the very bottom of the list of reasons of failure.

Asking business owners to pay people a livable wage isn't unreasonable. If a business owner cannot afford to pay people a livable wage, then perhaps they shouldn't be running a business.

Again with the livable qualifier. I had low paying jobs but lived within my means. I'm still here so I obviously lived. Nobody owes you a living. Want more pay? Work your way up or get a better job.

No one can live on a $8 an hour without getting a second job or receiving government assistance.

You know what, fine. Keep the current minium wage but conservatives shouldn't whine about people receiving government subsidies like section 8, food stamps and medicade.

Either increase the minium wage or give people subsidies.

If you are working for $8 an hour, you dropped out of school or have no marketable job skills. If that is the case, you should still be living in your parent's basement and be on their insurance.

Or you're in school. That's what I did all through college; worked as a store clerk for a drug store chain. Of course, after college, things got a lot better.

 

[Divine Wind]

I haven't notice a mass exodus from CA. Every month our home appreciates, and homes marketed at over 7 figures in my zip code are routinely sold for more than the asking price.

Every day we get notices in the mall from realators asking us to list our home, the market here is hot and our equity continues to grow.

You must be young because I remember at least two in the past 40 years. The last one was after the Cold War ended. Both Colorado and Texas have benefited from businesses and employers fleeing the PRC.

Californians Moving to Texas Hits Highest Level in Nine Years

There are Californians leaving California- and others coming here- more coming than leaving.

Which is why real estate prices are sky rocketing. Increased demand- higher prices.

Good for those of us who have lived here for a long time- hard on those whose housing isn't stable.

So why would anyone go to a state with unstable housing?

BTW, you're either fooling yourself on those numbers or smoking too much Golden State weed.

Golden state population trends | first tuesday Journal
California’s population grew at a rate of 0.7% in 2016. While still positive, this continues a downward trend in growth rate from the prior year. The annual rate of population growth is usually closer to 1%.

County-level data released in July 2016 show population increases in all of California’s most populous counties. However, reflecting the statewide trend, annual growth was lower than the prior year in each of these counties. Among the ten largest counties, Alameda, Contra Costa and Riverside Counties saw the highest growth from 2014 to 2015. The lowest population growth rate took place in Los Angeles County, which increased just 0.5% in 2015.

Steady population growth is essential for a long-term, stable housing market. The rate of California’s population growth, while continuing up, is forecasted to vary in step with other economic and political factors, bringing with it new household formations and demand for residential rentals and sales.

While still positive, this continues a downward trend in growth rate from the prior year.

Okay- tell me- why have home values skyrocketed? Business real estate prices sky rocketed?

Yes- skyrocketing home prices are keeping people away- but the reason for the sky rocketing prices is pretty simple- higher demand than inventory.

No worries. Enjoy living in your bubble.

 

[Divine Wind]

There it is folks, exactly how the left views business owners. They have this bizarre idea that all business owners just need to write bigger checks, and their own personal wealth will cover things.

Fucking amazing.

They will when people stop going to their restaurant because the prices are too expensive. Capitalism isn't a left sided mindset.

Proving how stupid you really are?



.

How do you get "top poster of the month" with the stupid shit you post?

Raise the prices enough and people will stop going and will start eating at home.

How will the employees buy their food to eat at home if they are unemployed?

Food stamps!

Our current president wants to cut foodstamps.

Let him. "We, the People" will let their reps know what they think of the plan in November 2018.

 

[danielpalos]

The Art of Cookery is not fungible with the Art of making Profit.

As the article proved, there's truth in your statement. A well rated restaurant eeked out a 8.5% profit before the mandated minimum wage rules then closed its doors due to a 1.5% margin whereas a minimum of 3-5% is required to keep restaurants open.

Good Capitalists like Henry Ford, doubled autoworker wages not minimum wages.

Which is why private industry should control it, not government. OTOH, I would support stopping "corporate welfare" or, at least, restricting it to companies who pay wages based on the local economy. Obviously someone in New York or San Francisco needs to make more money to survive than someone in Crestview, FL or Abilene, TX.

Only lousy capitalists complain about wages instead of achieving gains from efficiency.

Efficiency for a business is maximizing profit. This can be done through either increased production, cutting costs or a combination of both. Unfortunately, since the early 1970s, corporations offer the illusion of cutting costs by cutting employees and making the remaining employees work harder for the same pay. This hurts moral and the company can enter a death spiral resulting in bankruptcy. Bankruptcy laws allow restructuring and there's been a trend to make people work harder for less money while major investors and senior management see their pay increase. Mandating minimum wage doesn't fix this and anyone who thinks it does is fooling themselves. Sometimes it's more profitable for a company to simply cash in by dissolving itself completely or moving to another state. I think we'll start to see that in California. Again, governments run on taxes, but if there is no one to tax, where will they get their money?

Solving simple poverty removes that issue for Labor. And, social services cost around fourteen dollars an hour, anyway.

 

[Syriusly]

I haven't notice a mass exodus from CA. Every month our home appreciates, and homes marketed at over 7 figures in my zip code are routinely sold for more than the asking price.

Every day we get notices in the mall from realators asking us to list our home, the market here is hot and our equity continues to grow.

You must be young because I remember at least two in the past 40 years. The last one was after the Cold War ended. Both Colorado and Texas have benefited from businesses and employers fleeing the PRC.

Californians Moving to Texas Hits Highest Level in Nine Years

There are Californians leaving California- and others coming here- more coming than leaving.

Which is why real estate prices are sky rocketing. Increased demand- higher prices.

Good for those of us who have lived here for a long time- hard on those whose housing isn't stable.

So why would anyone go to a state with unstable housing?

BTW, you're either fooling yourself on those numbers or smoking too much Golden State weed.

Golden state population trends | first tuesday Journal
California’s population grew at a rate of 0.7% in 2016. While still positive, this continues a downward trend in growth rate from the prior year. The annual rate of population growth is usually closer to 1%.

County-level data released in July 2016 show population increases in all of California’s most populous counties. However, reflecting the statewide trend, annual growth was lower than the prior year in each of these counties. Among the ten largest counties, Alameda, Contra Costa and Riverside Counties saw the highest growth from 2014 to 2015. The lowest population growth rate took place in Los Angeles County, which increased just 0.5% in 2015.

Steady population growth is essential for a long-term, stable housing market. The rate of California’s population growth, while continuing up, is forecasted to vary in step with other economic and political factors, bringing with it new household formations and demand for residential rentals and sales.

While still positive, this continues a downward trend in growth rate from the prior year.

Okay- tell me- why have home values skyrocketed? Business real estate prices sky rocketed?

Yes- skyrocketing home prices are keeping people away- but the reason for the sky rocketing prices is pretty simple- higher demand than inventory.

No worries. Enjoy living in your bubble.

Its kind of a pain in the ass living in a place that is so much in demand. My neighborhood is gentrifying and losing some of its authenticity. New restaurants open all the time- and too many of the older neighborhood restaurants are pushed out by the higher rents.

That being said- better to be in a city with a thriving economy than one with no economy.

 

[danielpalos]

Why should we care; social services cost around fourteen dollars an hour anyway.

Again, do the math. Social services are based on taxes. If there are no businesses to tax, where do you expect the money to come from?

Don't believe in being legal to the laws of demand and supply, right winger.

Why don't you believe in the laws of supply and demand? I'm not going to roll in the mud with you. If you want to call names because you don't have an intelligent reply, that's on you. The fact remains it is in the best interests of any community that business thrives and provides jobs. It's also important that those jobs allow workers to not only sustain themselves, but advance. Hint: Flipping burgers at McDonald's is not a career job. It's an entry level job or a second job. Same goes for being a waiter/waitress.

so what; social services cost around fourteen dollars an hour, anyway. You have no rebuttal.

I'm not following your point....or more probably, you are following mine. Where do you think those social services "fourteen dollars an hour" come from? Magic beans? The Money Fairy? Or Tax payers. If there are no tax payers, then what do you do? Tax them anyway? LOL

Paying labor fifteen dollars an hour, makes rational choice theory sense for Labor.

 

[Wyatt earp]

There it is folks, exactly how the left views business owners. They have this bizarre idea that all business owners just need to write bigger checks, and their own personal wealth will cover things.

Fucking amazing.

They will when people stop going to their restaurant because the prices are too expensive. Capitalism isn't a left sided mindset.

Proving how stupid you really are?



.

How do you get "top poster of the month" with the stupid shit you post?

Raise the prices enough and people will stop going and will start eating at home.

How will the employees buy their food to eat at home if they are unemployed?

Food stamps!

Our current president wants to cut foodstamps.

In case you didn't know , Americans are becoming to fat and obesity has surpassed smoking as the number one preventable killer...he knows what's best for you, you don't know what's best for you.



.

 

[Admiral Rockwell Tory]

Restaurant die-off is first course of California’s $15 minimum wage

In a pair of affluent coastal California counties, the canary in the mineshaft has gotten splayed, spatchcocked and plated over a bed of unintended consequences, garnished with sprigs of locally sourced economic distortion and non-GMO, “What the heck were they thinking?”

The result of one early experiment in a citywide $15 minimum wage is an ominous sign for the state’s poorer inland counties as the statewide wage floor creeps toward the mark.

Consider San Francisco, an early adopter of the $15 wage. It’s now experiencing a restaurant die-off, minting jobless hash-slingers, cashiers, busboys, scullery engineers and line cooks as they get pink-slipped in increasing numbers. And the wage there hasn’t yet hit $15.

As the East Bay Times reported in January, at least 60 restaurants around the Bay Area had closed since September alone.

A recent study by Michael Luca at Harvard Business School and Dara Lee Luca at Mathematica Policy Research found that every $1 hike in the minimum wage brings a 14 percent increase in the likelihood of a 3.5-star restaurant on Yelp! closing.

Another telltale is San Diego, where voters approved increasing the city’s minimum wage to $11.50 per hour from $10.50, this after the minimum wage was increased from $8 an hour in 2015 – meaning hourly costs have risen 43 percent in two years.

The cost increases have pushed San Diego restaurants to the brink, Stephen Zolezzi, president of the Food and Beverage Association of San Diego County, told the San Diego Business Journal. Watch for the next mass die-off there...

Luckily, I live in the central coast area between L.A. and San Francisco, so this area hasn't gone as extreme left as those parts of California.

I eat in Seattle fairly often where they have the $15 minimum wage. The only change I've seen is some restaurants have raised their prices. Possibly a few marginally profitable restaurants have closed. Other than that it's about the same. New restaurants are opening daily, the population is growing over 1,000 a week, and unemployment has dropped to 2.9%, not exactly the predicted disaster when the minimum wage increase was proposed.

Why would anyone eat in Seattle when the same restaurant is usually down the road in Tacoma, Renton, Bellevue, Puyallup, or any other number of cities without the added costs?

 

[Divine Wind]

You must be young because I remember at least two in the past 40 years. The last one was after the Cold War ended. Both Colorado and Texas have benefited from businesses and employers fleeing the PRC.

Californians Moving to Texas Hits Highest Level in Nine Years

There are Californians leaving California- and others coming here- more coming than leaving.

Which is why real estate prices are sky rocketing. Increased demand- higher prices.

Good for those of us who have lived here for a long time- hard on those whose housing isn't stable.

So why would anyone go to a state with unstable housing?

BTW, you're either fooling yourself on those numbers or smoking too much Golden State weed.

Golden state population trends | first tuesday Journal
California’s population grew at a rate of 0.7% in 2016. While still positive, this continues a downward trend in growth rate from the prior year. The annual rate of population growth is usually closer to 1%.

County-level data released in July 2016 show population increases in all of California’s most populous counties. However, reflecting the statewide trend, annual growth was lower than the prior year in each of these counties. Among the ten largest counties, Alameda, Contra Costa and Riverside Counties saw the highest growth from 2014 to 2015. The lowest population growth rate took place in Los Angeles County, which increased just 0.5% in 2015.

Steady population growth is essential for a long-term, stable housing market. The rate of California’s population growth, while continuing up, is forecasted to vary in step with other economic and political factors, bringing with it new household formations and demand for residential rentals and sales.

While still positive, this continues a downward trend in growth rate from the prior year.

Okay- tell me- why have home values skyrocketed? Business real estate prices sky rocketed?

Yes- skyrocketing home prices are keeping people away- but the reason for the sky rocketing prices is pretty simple- higher demand than inventory.

No worries. Enjoy living in your bubble.

Its kind of a pain in the ass living in a place that is so much in demand. My neighborhood is gentrifying and losing some of its authenticity. New restaurants open all the time- and too many of the older neighborhood restaurants are pushed out by the higher rents.

That being said- better to be in a city with a thriving economy than one with no economy.

If "thriving" means long-term stability and sustainable, I agree. If it's headed for a cliff, then you don't want to be around when it hits, especially for homeowners who end up underwater on their loans.

 

[Divine Wind]

Again, do the math. Social services are based on taxes. If there are no businesses to tax, where do you expect the money to come from?

Don't believe in being legal to the laws of demand and supply, right winger.

Why don't you believe in the laws of supply and demand? I'm not going to roll in the mud with you. If you want to call names because you don't have an intelligent reply, that's on you. The fact remains it is in the best interests of any community that business thrives and provides jobs. It's also important that those jobs allow workers to not only sustain themselves, but advance. Hint: Flipping burgers at McDonald's is not a career job. It's an entry level job or a second job. Same goes for being a waiter/waitress.

so what; social services cost around fourteen dollars an hour, anyway. You have no rebuttal.

I'm not following your point....or more probably, you are following mine. Where do you think those social services "fourteen dollars an hour" come from? Magic beans? The Money Fairy? Or Tax payers. If there are no tax payers, then what do you do? Tax them anyway? LOL

Paying labor fifteen dollars an hour, makes rational choice theory sense for Labor.

Even for a mom & pop diner in Chico, CA? What sense doe it make to force them to let go of half their staff?

 

[danielpalos]

They will when people stop going to their restaurant because the prices are too expensive. Capitalism isn't a left sided mindset.

Proving how stupid you really are?



.

How do you get "top poster of the month" with the stupid shit you post?

Raise the prices enough and people will stop going and will start eating at home.

How will the employees buy their food to eat at home if they are unemployed?

Food stamps!

Our current president wants to cut foodstamps.

In case you didn't know , Americans are becoming to fat and obesity has surpassed smoking as the number one preventable killer...he knows what's best for you, you don't know what's best for you.



.

You have be able to "lead by example" for the militia of the United States.

 

[Admiral Rockwell Tory]

Let me just add another example. When I order Papa Johns, I have to pay $10.99 for a cheese pizza, pay the owner's sales tax for him, pay a $3.69 delivery fee, and then tip the driver on top of it (paying the employee's wage for the owner).

$10.99 (pizza) + 0.91 (tax) + $3.69 (delivery fee) + $5.00 (tip) = $20.59 for one fucking pizza. But damn, that pizza shop owner must be poor!!

Why is there a $3.69 delivery fee? We don't pay that here.

I paid $65.00 minus the tip in a suburb of Tacoma, WA last week.

That's the most expensive pizza I ever ate!

For one pizza?



.

Thanks! I forgot to say three pizzas.

 

[Divine Wind]

As the article proved, there's truth in your statement. A well rated restaurant eeked out a 8.5% profit before the mandated minimum wage rules then closed its doors due to a 1.5% margin whereas a minimum of 3-5% is required to keep restaurants open.

Good Capitalists like Henry Ford, doubled autoworker wages not minimum wages.

Which is why private industry should control it, not government. OTOH, I would support stopping "corporate welfare" or, at least, restricting it to companies who pay wages based on the local economy. Obviously someone in New York or San Francisco needs to make more money to survive than someone in Crestview, FL or Abilene, TX.

Only lousy capitalists complain about wages instead of achieving gains from efficiency.

Efficiency for a business is maximizing profit. This can be done through either increased production, cutting costs or a combination of both. Unfortunately, since the early 1970s, corporations offer the illusion of cutting costs by cutting employees and making the remaining employees work harder for the same pay. This hurts moral and the company can enter a death spiral resulting in bankruptcy. Bankruptcy laws allow restructuring and there's been a trend to make people work harder for less money while major investors and senior management see their pay increase. Mandating minimum wage doesn't fix this and anyone who thinks it does is fooling themselves. Sometimes it's more profitable for a company to simply cash in by dissolving itself completely or moving to another state. I think we'll start to see that in California. Again, governments run on taxes, but if there is no one to tax, where will they get their money?

Solving simple poverty removes that issue for Labor. And, social services cost around fourteen dollars an hour, anyway.

Democrats declared War on Poverty in the 1960s. How's that coming and why is it taking so long?

 

[Jimmy_Chitwood]

Let me just add another example. When I order Papa Johns, I have to pay $10.99 for a cheese pizza, pay the owner's sales tax for him, pay a $3.69 delivery fee, and then tip the driver on top of it (paying the employee's wage for the owner).

$10.99 (pizza) + 0.91 (tax) + $3.69 (delivery fee) + $5.00 (tip) = $20.59 for one fucking pizza. But damn, that pizza shop owner must be poor!!

Solution: Stop ordering fucking pizza. Frozen pizza = $6. Bake it yourself in 30 minutes.

I like my pizza like I like my women; HotnReady.

Do you get any toppings on your womens?