Who Subsidizes Restaurant Workers' Pitiful Wages? You Do

[David_42]

What I find most disturbing is that certain people want to completely destroy a safety net/assistance AND remove the minimum wage. Fucking hysterical.
Who subsidizes restaurant workers' pitiful wages? You do.

For Americans who like to eat out occasionally, the full-service restaurant industry is full of relatively affordable options—think Olive Garden, Applebees, or Chili's. But these spots aren't exactly a bargain once a hefty hidden cost is factored in: The amount of taxpayer assistance that goes to workers earning little pay.

Food service workers have more than twice the poverty rate of the overall workforce, and thus more often seek out public benefits. A new report published last week by the Restaurant Opportunities Centers United (ROC), a restaurant workers' advocacy and assistance group, calculated the tab and found that from 2009 to 2013, regular Americans subsidized the industry's low wages with nearly $9.5 billion in tax money each year. That number includes spending from roughly 10 different assistance programs, including Medicaid, food stamps, and low-income housing programs like Section 8.

Here's the breakdown per program:

Restaurant Opportunities Centers United

 

[Sunni Man]

 

[depotoo]

You are either union or DSA, I bet.

 

[OnePercenter]

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

 

[EdwardBaiamonte]

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

1) an typical restaurant will go bankrupt in less than 5 years so most have net margin of 0% with 70% not surviving 5 years!!!

2) yes customers pay the wages of employees

1% takes cake for pure evil stupid liberalism!!

 

[CrusaderFrank]

How?

How do Progressives figure out how to reproduce? Any species so consistently wrong and stupid must eventually go extinct

 

[David_42]

How?

How do Progressives figure out how to reproduce? Any species so consistently wrong and stupid must eventually go extinct

 

[EdwardBaiamonte]

How?

How do Progressives figure out how to reproduce? Any species so consistently wrong and stupid must eventually go extinct

dear, if Jefferson was stupid for wanting freedom please say why or admit you lack the IQ to be here.

 

[depotoo]

You are joking, right?? The average is 5-7% in successful restaurants.

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

 

[BluePhantom]

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

20% my ass. I have been managing restaurants my entire adult life. If you pull 5% you are doing well. Most do 3%-5%. Pfft....20%....anyone who believes that has never seen a restaurant's P&L

 

[hortysir]

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

Thanks to depotoo and BluePhantom
You're going to have to support that clam.
I will apply for that company TOMORROW, if true.
Their bonus structure must be fucking awesome

Fuck, dude......we spend more than 20% just on labor

 

[SAYIT]

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

I notice you failed to include a credible link to your lie. I'm shocked! Shocked, I say.

 

[BluePhantom]

You are joking, right?? The average is 5-7% in successful restaurants.

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

Actually it depends a bit on the type of restaurant. High volume restaurants will generate a lower net and make money by feeding the masses. Lower volume restaurants generate a higher net but don't do nearly the amount of business. 5% give or take a few points depending on the type of restaurant is about right.

But this is why wage hikes hit high volume restaurants harder. They have less room to work with so they have to run things FAR tighter. Small adjustments of 1% - 2% eat their margins alive and major wage hikes can wipe out their profitability completely.

 

[hortysir]

You are joking, right?? The average is 5-7% in successful restaurants.

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

Actually it depends a bit on the type of restaurant. High volume restaurants will generate a lower net and make money by feeding the masses. Lower volume restaurants generate a higher net but don't do nearly the amount of business. 5% give or take a few points depending on the type of restaurant is about right.

But this is why wage hikes hit high volume restaurants harder. They have less room to work with so they have to run things FAR tighter. Small adjustments of 1% - 2% eat their margins alive and major wage hikes can wipe out their profitability completely.

I didn't bonus this last quarter because we spent five grand for a new sign the wind took out.

 

[BluePhantom]

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

Thanks to depotoo and BluePhantom
You're going to have to support that clam.
I will apply for that company TOMORROW, if true.
Their bonus structure must be fucking awesome

Fuck, dude......we spend more than 20% just on labor

No shit! Now toss in another 26%-30% for food and you are somewhere between 55%-60%. Then you have utilities, rent, insurance, maintenance, payroll taxes, marketing, etc, etc, etc.....pfft....20 fucking percent my ass.

 

[boedicca]

Pretty soon more restaurant workers will be FORMER workers due to being replaced by robots.

Then we'll be paying 100% of their welfare benefits.

Hopenchange!

 

[hortysir]

Pretty soon more restaurant workers will be FORMER workers due to being replaced by robots.

Then we'll be paying 100% of their welfare benefits.

Hopenchange!

Cloward, meets Piven

 

[BluePhantom]

You are joking, right?? The average is 5-7% in successful restaurants.

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

Actually it depends a bit on the type of restaurant. High volume restaurants will generate a lower net and make money by feeding the masses. Lower volume restaurants generate a higher net but don't do nearly the amount of business. 5% give or take a few points depending on the type of restaurant is about right.

But this is why wage hikes hit high volume restaurants harder. They have less room to work with so they have to run things FAR tighter. Small adjustments of 1% - 2% eat their margins alive and major wage hikes can wipe out their profitability completely.

I didn't bonus this last quarter because we spent five grand for a new sign the wind took out.

Oh you want to talk about signs? How about this one. There was a tree in front of the sign to one of our locations and it was obscuring the sign from traffic. I pointed this out to the owner. Now we can't just cut down the damned tree because we live in Portland and killing a tree for marketing is like treason so he spent $10,000 to move the fucking sign ten yards from one side of the tree to the other. Of course this obscured the sign from the view of traffic coming the other way.

I could have solved the problem for a couple hundred bucks in one afternoon with a chainsaw and a U-Haul. The public would have gotten over it.

 

[BluePhantom]

Pretty soon more restaurant workers will be FORMER workers due to being replaced by robots.

Then we'll be paying 100% of their welfare benefits.

Hopenchange!

What will happen is exactly what we are doing at the restaurants I manage and what is happening all over the industry. Workers get 28 hours a week and no more. So all these people who had full time jobs now have part time jobs. So they get less money and have to buy their own insurance out of their smaller paycheck. Way to go Reid, Pelosi, and Obama.

 

[hortysir]

You are joking, right?? The average is 5-7% in successful restaurants.

A typical successful restaurant owner makes 20% net, so it is correct that customers subsidize the employees of the restaurant.

Actually it depends a bit on the type of restaurant. High volume restaurants will generate a lower net and make money by feeding the masses. Lower volume restaurants generate a higher net but don't do nearly the amount of business. 5% give or take a few points depending on the type of restaurant is about right.

But this is why wage hikes hit high volume restaurants harder. They have less room to work with so they have to run things FAR tighter. Small adjustments of 1% - 2% eat their margins alive and major wage hikes can wipe out their profitability completely.

I didn't bonus this last quarter because we spent five grand for a new sign the wind took out.

Oh you want to talk about signs? How about this one. There was a tree in front of the sign to one of our locations and it was obscuring the sign from traffic. I pointed this out to the owner. Now we can't just cut down the damned tree because we live in Portland and killing a tree for marketing is like treason so he spent $10,000 to move the fucking sign ten yards from one side of the tree to the other. Of course this obscured the sign from the view of traffic coming the other way.

I could have solved the problem for a couple hundred bucks in one afternoon with a chainsaw and a U-Haul. The public would have gotten over it.

We had a similar problem with our neighbors(McDonald's) at another place I worked.
We tried to offer to split the cost of just trimming it. They wouldn't budge.
I had a regular customer that worked for the power company. He butchered the shit out of that tree since it was "in danger of obstructing the power lines"


BTW, our sign is actually $7k. $5k is our deductible.
The other two grand, since we haven't paid it yet, will come off the bottom line this quarter. (our slowest)