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

[danielpalos]

What is the surcharge in restaurants that surcharge the cost?

 

[dannyboys]

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.

 

[hadit]

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

They're trying. More and more fast food places are implementing self-service kiosks here in California. I don't blame them either.

I so doubt that this is due to the wage increase, shame on them for paying min wage in the state to begin with. The cost of living is high in San Diego, and that is all they make. There comes a time when the worker just needs to say hell with it when the business owners want to get rich off their backs. I bet they do not even cost share health insurance. Self serve, well we all know waitresses do not make min wage.

You've obviously never been associated with a restaurant. It's a brutal business with very low margins and extreme swings in business climate. Plus there are very few businesses that I know of that could handle a 43% increase in labor costs over 2 years. I know it would put my business down, of course if I saw it coming I wouldn't wait, I'd get out immediately.

Henry Ford doubled autoworker wages not minimum wages.

Because he could afford to do so and because he was producing a product with extremely high demand.

I've told you all this before, but it seems that you didn't learn it very well, did you?

 

[hadit]

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.

Most restaurants fail in the first year or so, and those that succeed take years to begin turning a profit. During that time the owner is usually taking a very small salary or none at all. In fact, the employees can make more than the owner.

 

[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!!

Sounds like you need to get a Papa John's franchise and show us what a layup it is and stop trying to convince us with idle talk.

 

[Mr Natural]

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!!

Twenty dollars for fake pizza?

Outrageous!

 

[danielpalos]

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

They're trying. More and more fast food places are implementing self-service kiosks here in California. I don't blame them either.

I so doubt that this is due to the wage increase, shame on them for paying min wage in the state to begin with. The cost of living is high in San Diego, and that is all they make. There comes a time when the worker just needs to say hell with it when the business owners want to get rich off their backs. I bet they do not even cost share health insurance. Self serve, well we all know waitresses do not make min wage.

You've obviously never been associated with a restaurant. It's a brutal business with very low margins and extreme swings in business climate. Plus there are very few businesses that I know of that could handle a 43% increase in labor costs over 2 years. I know it would put my business down, of course if I saw it coming I wouldn't wait, I'd get out immediately.

Henry Ford doubled autoworker wages not minimum wages.

Because he could afford to do so and because he was producing a product with extremely high demand.

I've told you all this before, but it seems that you didn't learn it very well, did you?

Higher wages still allowed Henry Ford to achieve gains from efficiency; an efficiency wage; what a concept.

 

[hadit]

They're trying. More and more fast food places are implementing self-service kiosks here in California. I don't blame them either.

I so doubt that this is due to the wage increase, shame on them for paying min wage in the state to begin with. The cost of living is high in San Diego, and that is all they make. There comes a time when the worker just needs to say hell with it when the business owners want to get rich off their backs. I bet they do not even cost share health insurance. Self serve, well we all know waitresses do not make min wage.

You've obviously never been associated with a restaurant. It's a brutal business with very low margins and extreme swings in business climate. Plus there are very few businesses that I know of that could handle a 43% increase in labor costs over 2 years. I know it would put my business down, of course if I saw it coming I wouldn't wait, I'd get out immediately.

Henry Ford doubled autoworker wages not minimum wages.

Because he could afford to do so and because he was producing a product with extremely high demand.

I've told you all this before, but it seems that you didn't learn it very well, did you?

Higher wages still allowed Henry Ford to achieve gains from efficiency; an efficiency wage; what a concept.

He would not/could not have raised wages that far if he did not:

1. Have the revenue stream and cash reserves to do so.
2. Have a product he knew had enormous demand. Bill Gates was in a similar situation with the personal computer boom. The truth is, only a few business owners are in the exact right place at the exact right time to capitalize on something like that.

To intimate, as you continually do, that all businesses today could double labor costs overnight with no negative repercussions is disingenuous at the least, outright lying at the worst. Either way, stop it.

 

[hadit]

You've obviously never been associated with a restaurant. It's a brutal business with very low margins and extreme swings in business climate. Plus there are very few businesses that I know of that could handle a 43% increase in labor costs over 2 years. I know it would put my business down, of course if I saw it coming I wouldn't wait, I'd get out immediately.

Henry Ford doubled autoworker wages not minimum wages.

Because he could afford to do so and because he was producing a product with extremely high demand.

I've told you all this before, but it seems that you didn't learn it very well, did you?

Higher wages still allowed Henry Ford to achieve gains from efficiency; an efficiency wage; what a concept.

He would not/could not have raised wages that far if he did not:

1. Have the revenue stream and cash reserves to do so.
2. Have a product he knew had enormous demand. Bill Gates was in a similar situation with the personal computer boom. The truth is, only a few business owners are in the exact right place at the exact right time to capitalize on something like that.

To intimate, as you continually do, that all businesses today could double labor costs overnight with no negative repercussions is disingenuous at the least, outright lying at the worst. Either way, stop it.

Yes, he did; he found an, efficiency to exploit and it merited an efficiency wage. The right wing is simply, clueless and Causeless if they don't believe in capital opportunities at every turn. Why blame the poor, in that case, right wingers.

Since you've been made aware of what you are doing, you cannot avoid lying if you do not stop.

 

[danielpalos]

Henry Ford doubled autoworker wages not minimum wages.

Because he could afford to do so and because he was producing a product with extremely high demand.

I've told you all this before, but it seems that you didn't learn it very well, did you?

Higher wages still allowed Henry Ford to achieve gains from efficiency; an efficiency wage; what a concept.

He would not/could not have raised wages that far if he did not:

1. Have the revenue stream and cash reserves to do so.
2. Have a product he knew had enormous demand. Bill Gates was in a similar situation with the personal computer boom. The truth is, only a few business owners are in the exact right place at the exact right time to capitalize on something like that.

To intimate, as you continually do, that all businesses today could double labor costs overnight with no negative repercussions is disingenuous at the least, outright lying at the worst. Either way, stop it.

Yes, he did; he found an, efficiency to exploit and it merited an efficiency wage. The right wing is simply, clueless and Causeless if they don't believe in capital opportunities at every turn. Why blame the poor, in that case, right wingers.

Since you've been made aware of what you are doing, you cannot avoid lying if you do not stop.

You have no "gospel Truth" at your command; that is why you need a valid argument; clueless and Causeless wonder.

 

[hadit]

Because he could afford to do so and because he was producing a product with extremely high demand.

I've told you all this before, but it seems that you didn't learn it very well, did you?

Higher wages still allowed Henry Ford to achieve gains from efficiency; an efficiency wage; what a concept.

He would not/could not have raised wages that far if he did not:

1. Have the revenue stream and cash reserves to do so.
2. Have a product he knew had enormous demand. Bill Gates was in a similar situation with the personal computer boom. The truth is, only a few business owners are in the exact right place at the exact right time to capitalize on something like that.

To intimate, as you continually do, that all businesses today could double labor costs overnight with no negative repercussions is disingenuous at the least, outright lying at the worst. Either way, stop it.

Yes, he did; he found an, efficiency to exploit and it merited an efficiency wage. The right wing is simply, clueless and Causeless if they don't believe in capital opportunities at every turn. Why blame the poor, in that case, right wingers.

Since you've been made aware of what you are doing, you cannot avoid lying if you do not stop.

You have no "gospel Truth" at your command; that is why you need a valid argument; clueless and Causeless wonder.

Nonsense.

 

[martybegan]

Higher wages still allowed Henry Ford to achieve gains from efficiency; an efficiency wage; what a concept.

He would not/could not have raised wages that far if he did not:

1. Have the revenue stream and cash reserves to do so.
2. Have a product he knew had enormous demand. Bill Gates was in a similar situation with the personal computer boom. The truth is, only a few business owners are in the exact right place at the exact right time to capitalize on something like that.

To intimate, as you continually do, that all businesses today could double labor costs overnight with no negative repercussions is disingenuous at the least, outright lying at the worst. Either way, stop it.

Yes, he did; he found an, efficiency to exploit and it merited an efficiency wage. The right wing is simply, clueless and Causeless if they don't believe in capital opportunities at every turn. Why blame the poor, in that case, right wingers.

Since you've been made aware of what you are doing, you cannot avoid lying if you do not stop.

You have no "gospel Truth" at your command; that is why you need a valid argument; clueless and Causeless wonder.

Nonsense.

he's good at that. once he goes into his "Clueless and Causeless" blather it's just an indication that he's run out of wind.

 

[Divine Wind]

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.

Mar 15, 2016 ... Around 60 percent of new restaurants fail within the first year. And nearly 80 percent shutter before their fifth anniversary. Often, the No. 1 reason is simply location — and the general lack of self-awareness that you have no business actually being in that location.

Correct about new restaurants failing, but everyone who actually read the article knows that isn't the case here.

Are you trying to say the Fresno (or Modesto) Bee is a RW blog?

Joining San Francisco’s restaurant die-off was rising star AQ, which in 2012 was named a James Beard Award finalist for the best new restaurant in America. The restaurant’s profit margins went from a reported 8.5 percent in 2012 to 1.5 percent by 2015. Most restaurants are thought to require margins of 3 and 5 percent.

If what’s happening with one early adopter of the $15 wage progression is any indication, locally famous inland hash houses and burger joints from Calexico to the Cow Counties will disappear as mandated wages climb to $15 statewide. And that will only be the start of things.

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.

 

[Divine Wind]

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.

 

[jknowgood]

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

I see you never ran a business.

 

[Flopper]

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.

 

[Divine Wind]

Mar 15, 2016 ... Around 60 percent of new restaurants fail within the first year. And nearly 80 percent shutter before their fifth anniversary. Often, the No. 1 reason is simply location — and the general lack of self-awareness that you have no business actually being in that location.

The right wing prefers to "blame the poor". Those Firms would have probably failed anyway.

No one is blaming the poor, we just can't seem to get it across to those not in business that artificially increasing the costs on a business has consequences. Not every job can support a family of 4. And raising labor costs by 43% in 2 years is not a small burden.

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.

 

[Jimmy_Chitwood]

They're trying. More and more fast food places are implementing self-service kiosks here in California. I don't blame them either.

I so doubt that this is due to the wage increase, shame on them for paying min wage in the state to begin with. The cost of living is high in San Diego, and that is all they make. There comes a time when the worker just needs to say hell with it when the business owners want to get rich off their backs. I bet they do not even cost share health insurance. Self serve, well we all know waitresses do not make min wage.

You've obviously never been associated with a restaurant. It's a brutal business with very low margins and extreme swings in business climate. Plus there are very few businesses that I know of that could handle a 43% increase in labor costs over 2 years. I know it would put my business down, of course if I saw it coming I wouldn't wait, I'd get out immediately.

Henry Ford doubled autoworker wages not minimum wages.

Because he could afford to do so and because he was producing a product with extremely high demand.

I've told you all this before, but it seems that you didn't learn it very well, did you?

Higher wages still allowed Henry Ford to achieve gains from efficiency; an efficiency wage; what a concept.

He had so much competition?

 

[Jimmy_Chitwood]

The right wing prefers to "blame the poor". Those Firms would have probably failed anyway.

No one is blaming the poor, we just can't seem to get it across to those not in business that artificially increasing the costs on a business has consequences. Not every job can support a family of 4. And raising labor costs by 43% in 2 years is not a small burden.

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.

I did those jobs to get started in college until I could a real job in my field (junior year).

America 101:
If you do not like your new job - get a new one. Do something about it.

 

[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.

Less than 30 mins.
Less than $6 on sale.
Never closes.