OnePercenter
Gold Member
- Apr 10, 2013
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He's too stupid to get it. He thinks business owners shit money.Only if it was all that simple, however it doesn't work that way. Depending on the size of a business 70K can be a lot or a little. An increase from $25K a month to 30K is a $60K a year increase, which is less than your claimed peanuts of $70K. So I think your numbers in others items of business are way off.
Hello papag. I have not seen you for a while.
My numbers was just an example how a restaurant can easily recover $192 MW a day increase = 70k/year. From my example---- if a couple spend minimum ( that is minimum ) of $11 ($5.50/person) higher from previous menus.
Let say say ONLY 35 customers ate in that restaurant for the whole day during lunch and diner= $192.50.
If that same restaurant had 80 to 120+ customers in one day. Piece of cake.
1. Been around, I hope things are going well for you. How do you drive an extra 40 to 70 customers a day?
2. The average profit margin of a restaurant is 3.6% to make up $192.50 in costs a restaurant needs to generate over $5300 a day in revenue to maintain the slim 3.6% in profit.
3. If you increase customers you will increase food costs, you increase labor, water, sewer, lights and so on. So a business owner would need to look at the impact of a wage increase and find ways to off set the expense. The ways to do that are limited. Increase menu prices, look at the restaurant hours and cut back on slow business hours, layoff workers and short staff, get lower quality food, cut back on portions, there are other ways but those are most of them. Most small businesses don't have a lot of areas to cut back.
1. Health and business been good can't complain. Just returned from a summer Hawaiian vacation with my entire clan for 8 days.
2. The 35 number of customers I gave for lunch and dinners is the minimum. There are no such restaurants that only have 35 customers for lunch and dinners. Otherwise they are not in business to begin with. I gave a minimum $5.50 per person increase from old menu x 35 customers to cover $192. They do these all the time. That kind of increase will not result in lay off, cut back hours, short staff or lower quality food. Otherwise all famous and big restaurants are closed a long time ago.
There are tons of small businesses here that are operational and successful. They do give raises to their current employees, a lot of them are making over $16/hour. I do not expect a lot or any business that will close because of MW hike. If business is good business will survive----- If business is sucks like food you don't expect to survive.
My favorite taco stand here in San Diego normally cost me $3.15 for one taco asada. I know the owner for many years. She increased the price of taco asada to $3.65 and so the rest of the menu across the board including soda effective last June 5. Not sure what and how much she increases across the board
I ate 4 taco asada today no soda ( too much sugar) just water. That is when I asked her ------ Why is the increase? She said MW increase amigo and the place was packed as always.
With low unemployment rate businesses are force to hire the rejects and higher rates than $12.
Glad you had a great vacation, we just did a drive from Mt. Rushmore, Devils Tower and Yellowstone, this fall we are taking a cruise.
I'm just saying that additional costs are not simply offset by raising prices. If a business has an increase of costs by $192, the offset has to be a lot more than $192. The actual cost is not $192, however it is closer to $5000, otherwise the profit margin goes down. Most restaurants work off a 3.6% profit margin. To produce more food, you would have to buy more food, use more electric, clean more dishes etc, etc. so it always isn't easy to do. You do have to raise food prices but it isn't the only way you can recoup a labor increase.
Smart ones do.