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

[charwin95]

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.

Poor dumb asses like you might...



Again answer my question child do you know what the profit margins for fast food joints are?



.

Tons, look at McDonalds and BK for example.

Showing more ignorance are you?

With McDonald's they only own 5% of the stores , the rest are small business owners fool..


So again scared to research the profit margins of fast food restaurants?




.

Yep, guess McDonald's doesn't profit from those stores just because they're owned by a franchisee... Again, I was right, a string of retarded posts by you.

-McDonalds doesn't make huge profits.
-The free market won't eliminate expensive restaurants.
- The owner of the restaurant needs to drive a Porche or else he's considered "poor."

Once again you moron 82% of McDonald's are owned by small business owners....

So again still scared to find out the slim profit margins ?



.

Last time I checked from my friends they make around $200k to $285k a year net profit.

 

[Markle]

I'll admit that 15 bucks per hour isn't going to work...$10 maybe...

What needs to be done is a law needs to be made to target corporate wealth and spread more fairly to the workers. STOP THE GOLDEN SHUTES.

More union power would be nice to.

 

[IsaacNewton]

I'll admit that 15 bucks per hour isn't going to work...$10 maybe...

What needs to be done is a law needs to be made to target corporate wealth and spread more fairly to the workers. STOP THE GOLDEN SHUTES.

More union power would be nice to.

Yes conservatives, you need to give up your socialism. Stop worshipping Ronald Reagan's hero Che Guevera.

 

[charwin95]

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.

Good point Nia.

 

[charwin95]

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.

You can't bully me into accepting your world view. You believe people are owed a lifestyle. I don't. Like I said I lived on dirt wages so I know what I'm talking about, you don't.

If you work you should be able to make a living and not live like a rat.

The Democrats are looking through the wrong end of the telescope on this just as they did with Obamacare. Yes, you can't buy a three bedroom house, two car garage home and send two kids to college on flipping burgers at McDonalds. Instead of jacking up minimum wage resulting in higher prices and businesses collapsing or automating thereby reducing jobs, why not just find ways to reduce costs? Obamacare is in trouble because it didn't fix the main problem with healthcare: costs.

Do you have any suggestions how and what to reduce cost?

 

[charwin95]

Anyone who has owned and operated any restaurant from FF to three stars shake their head when they read posts from fucking LIBs who claim the "owners" are getting rich.
You LIBs NEVER succeed in the restaurant business..........NEVER!!!!
You don't have what it takes to put in the hours and put up with the employees.

So you know all political affiliation of the restaurant owners in America?
How can you tell if the owners is democrats or republicans?

 

[Toddsterpatriot]

Normally most or all businesses will close, shutdown or file bankruptcy it's because of the products.

When discussing MW increase the anti MW advocate make it sound like 1. Jump from $10 to $15 in one year. 2. Every one start working today making $15..
When in reality a lot of these people already making $13 to $18.
If a restaurant owner has 12 employees working let say 8 hours (mostly don't work 8 hours) making $13/hour now then overnight jump to $15. That is $2/hour increase x 8= $16/employees x 12 employees = At the maximum the owner will cost him extra $192 per day. Big F deal.
All she/he have to do is slightly increase the prices of soda 25 cents there, alcohol 80cents there, menus etc etc etc. Menu prices increases just about every year because of other things like inflation adjustment ----- So what is new now?

At the maximum the owner will cost him extra $192 per day. Big F deal.

How much do they need to increase sales to earn the extra $192 per day that you think is no big deal?

 

[Markle]

Last time I checked from my friends they make around $200k to $285k a year net profit.

You were discussing a restaurant's profit margin which is none of your business.

Overall:
Full-Service Restaurants
Full-service restaurants at all levels spent about 32 percent of each dollar on the cost of food and beverages, 33 percent on salaries and wages, and from 5 percent to 6 percent on restaurant occupancy costs. Profit margins, however, varied according to the cost of the average check per person. Those with checks under $15 showed a profit of 3 percent. Those with checks from $15 to $24.99 boasted the highest profit margin at 3.5 percent. Finally, those with checks of $25 and over had the lowest profits, at 1.8 percent.

Limited-Service Restaurants
Limited-service restaurants devoted 32 percent of every dollar to the cost of food and beverages, which was nearly identical to the costs for full-service establishments. However, only 29 percent went to salaries and wages, which was lower than that of full-service restaurants. About 8 percent was devoted to restaurant occupancy costs, which was the highest of any type of establishment. Profit before taxes was also the highest for any type of restaurant, at 6 percent.

The Average Profit Margin for a Restaurant

 

[Iceweasel]

Normally most or all businesses will close, shutdown or file bankruptcy it's because of the products.

When discussing MW increase the anti MW advocate make it sound like 1. Jump from $10 to $15 in one year. 2. Every one start working today making $15..
When in reality a lot of these people already making $13 to $18.
If a restaurant owner has 12 employees working let say 8 hours (mostly don't work 8 hours) making $13/hour now then overnight jump to $15. That is $2/hour increase x 8= $16/employees x 12 employees = At the maximum the owner will cost him extra $192 per day. Big F deal.
All she/he have to do is slightly increase the prices of soda 25 cents there, alcohol 80cents there, menus etc etc etc. Menu prices increases just about every year because of other things like inflation adjustment ----- So what is new now?

At the maximum the owner will cost him extra $192 per day. Big F deal.

How much do they need to increase sales to earn the extra $192 per day that you think is no big deal?

$192 times 365 is a right hefty overhead increase.

 

[charwin95]

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.

I've been telling the same story to Bear for over 2 years now. But for some reason his brain stuck that businesses are collapsing in Seattle.

I have tons of extended relatives in Seattle lots of them works for the city -------- That issue building permits, inspectors, city engineers, etc etc. Some also works for Boeing. Couple of them own successful seafood restaurants and none of their workers making less than $16/hour.

 

[Iceweasel]

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.

I've been telling the same story to Bear for over 2 years now. But for some reason his brain stuck that businesses are collapsing in Seattle.

I have tons of extended relatives in Seattle lots of them works for the city -------- That issue building permits, inspectors, city engineers, etc etc. Some also works for Boeing. Couple of them own successful seafood restaurants and none of their workers making less than $16/hour.

Government employees can pay whatever for dining out. If eating out costs too much they simply increase their pay. And Boeing employees aren't working for minimum wage.

 

[Ame®icano]

I'll admit that 15 bucks per hour isn't going to work...$10 maybe...

What needs to be done is a law needs to be made to target corporate wealth and spread more fairly to the workers. STOP THE GOLDEN SHUTES.

More union power would be nice to.

Why so greedy?

Speaking as a true statist: Spread the wealth, right?

 

[Markle]

19 States Increase Minimum Wage at the Start of 2017

All 19 states are democrats with unfunded pensions?

So what? States may do as they wish be based on the specific needs of their own state, cities, and counties. What's wrong with that solution? Do you honestly believe that if you want a minimum wage, which I do not, it should be the same MW in California as the MW in Arkansas?

 

[charwin95]

Last time I checked from my friends they make around $200k to $285k a year net profit.

You were discussing a restaurant's profit margin which is none of your business.

Overall:
Full-Service Restaurants
Full-service restaurants at all levels spent about 32 percent of each dollar on the cost of food and beverages, 33 percent on salaries and wages, and from 5 percent to 6 percent on restaurant occupancy costs. Profit margins, however, varied according to the cost of the average check per person. Those with checks under $15 showed a profit of 3 percent. Those with checks from $15 to $24.99 boasted the highest profit margin at 3.5 percent. Finally, those with checks of $25 and over had the lowest profits, at 1.8 percent.

Limited-Service Restaurants
Limited-service restaurants devoted 32 percent of every dollar to the cost of food and beverages, which was nearly identical to the costs for full-service establishments. However, only 29 percent went to salaries and wages, which was lower than that of full-service restaurants. About 8 percent was devoted to restaurant occupancy costs, which was the highest of any type of establishment. Profit before taxes was also the highest for any type of restaurant, at 6 percent.

The Average Profit Margin for a Restaurant

Bear was talking about McDonald's profit. Why is that not my business?

 

[Markle]

How can you tell if the owners is democrats or republicans?

The majority will be Republicans. They have to work LONG hard hours to earn a living. Something foreign to most Democrats.

 

[Markle]

Bear was talking about McDonald's profit. Why is that not my business?

My 40+ year career resulted in decades of income in six figures. What I earn is none of your business just as what you earn is none of my business. I don't care.

 

[Care4all]

maine and oregon should have been warning enough

Maine??? WHY Maine Aris?

We did vote in the last election to raise our state minimum wage to $9 starting in 2017, of which the state had not increased it since 2009....??? To go to $12 by 2020....

 

[aris2chat]

maine and oregon should have been warning enough

Maine??? WHY Maine Aris?

We did vote in the last election to raise our state minimum wage to $9 starting in 2017, of which the state had not increased it since 2009....??? To go to $12 by 2020....

already suffering because of wages

Maine Voices: Minimum-wage hike would hurt Maine - Portland Press ...
www.pressherald.com/.../maine-voices-research-minimum-wage-hike-would-have-har...
Sep 21, 2016 - Tell that to the numerous small businesses in New York state and elsewhere ... reduce hours or close entirely because of the increasedlabor costs associated ... 3,800 jobs would be lost in Maine at a $12-an-hour minimum wage. .... tipped minimum wage ($2.13 per hour since 1991) would hurt restaurants.
Some servers in central Maine fear losing tips under Question 4 ...
www.pressherald.com/2016/10/29/servers-split-on-tipped-wage-increase/
Oct 29, 2016 - Some servers in central Maine fear losing tips under Question 4 ... “Minimum-wage increases are good for workers if they keep their jobs,” said ... Trostel, the economist, said that's unlikely, because tipping is already such a ... it is possible some restaurants could lay off workers or even go out of business.
Maine Voices: Raising minimum wage will hurt small businesses and ...
www.pressherald.com/.../maine-voices-raising-minimum-wage-will-hurt-small-busine...
Aug 11, 2016 - Base pay of $12 per hour would eliminate 4,000 jobs inMaine, most of them ... that a minimum-wage increase would help small businesses and power the ... which tend to be at small businesses such asrestaurants, grocery stores, ..... Portland condemns apartment buildingbecause of frequent police visits ...
Restaurant Workers of Maine group opts against minimum wage ...
bangordailynews.com/.../restaurant-workers-of-maine-group-opts-against-minimum-...
Nov 4, 2016 - Foye, who has worked in the restaurant business for nine years, ... BANGOR, Maine — Taylor Trafton said she will need a second job if ... family-type venues closing because of the loss of customers. ... The general minimum wage increase should be decoupled from the tipped workers' wage, Grey said.
Some central Maine businesses, workers, already feeling minimum ...
www.centralmaine.com/.../some-central-maine-businesses-workers-already-feeling-mi...
Feb 20, 2017 - Putting the wage increase together with the tax increases ... and it's an incredibly difficult job, because your pay is directly based on the ... which is why more than 60 restaurants and 600 small businesses in ... Katz said he's heard from “dozens” in the restaurant industry who don't want to lose the tip credit.

 

[charwin95]

Normally most or all businesses will close, shutdown or file bankruptcy it's because of the products.

When discussing MW increase the anti MW advocate make it sound like 1. Jump from $10 to $15 in one year. 2. Every one start working today making $15..
When in reality a lot of these people already making $13 to $18.
If a restaurant owner has 12 employees working let say 8 hours (mostly don't work 8 hours) making $13/hour now then overnight jump to $15. That is $2/hour increase x 8= $16/employees x 12 employees = At the maximum the owner will cost him extra $192 per day. Big F deal.
All she/he have to do is slightly increase the prices of soda 25 cents there, alcohol 80cents there, menus etc etc etc. Menu prices increases just about every year because of other things like inflation adjustment ----- So what is new now?

At the maximum the owner will cost him extra $192 per day. Big F deal.

How much do they need to increase sales to earn the extra $192 per day that you think is no big deal?

$192 times 365 is a right hefty overhead increase.

True but that is part of running a business. Most do not open 7 days.
Restaurants can easily recoup that cost by increasing the price of menus, alcoholic or non alcoholic beverages. Menu prices goes up all the time even before the MW increase fiasco.

Let say you and your wife went for a dinner normally will cost you $40 the menu increase to $47, + 2 glasses of red romantic red wine from $12 to $14, Total of $11 increase ( do not ask for toothpick) You might ask for another 2 glasses, that is just the 2 of you. How much is that now? In my case I normally ask for the bottle so I can get horny. How about a group of 3, 4, 6 or more? In 8 hours.
In reality the business owner already figured out how much she/he can increase by percentage to reach that $192 threshold. If computerized he doesn't even need to run a query.
In reality she/he will use a higher threshold like $400. as an example. That is how greedy democrats or republicans business owners does.

 

[charwin95]

How can you tell if the owners is democrats or republicans?

The majority will be Republicans. They have to work LONG hard hours to earn a living. Something foreign to most Democrats.

That is bull shit. How can you tell a liberal and republican business owners?
We have lots of democrats business owners here in California are you saying they don't work long hours? Crap.