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Restaurant closing due to lack of staff in my area, anyone else?

West Texas CEO

GAF's Nicest Lunch Thief and Nosiest Dildo Archeologist
ef8bafe0-bd4e-11eb-bfdf-02e1112e30e9


*& meet employment criteria.

That's code for we are going to set the conditions so high you have no fucking chance of us ever giving you the phone. Ever. Sucker.
lmao

Talk about having no respect. Six full months working in a shithole before I can qualify to get a shitty phone?

You can suck a fat one, McDouchebag's.

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xrnzaaas

Member
Prices have skyrocketed because of inflation due to the government over-printing money.

it might also be because of food shortages depending on the crop due again to low employment. The low employment being due to unemployment payments.

Don’t underestimate the absolute efficiency and dedication the government gives to completely fucking up an already-exasperated problem. (No matter who is in charge.)
I realize that the inflation and food shortages can be important factors, but something's not right when the prices are 50% higher (or more) than a few months ago before the last lockdown. Some restaurants have increased them only slightly and I can understand that, not when there's such a big spike within only a few months. I don't run a business so don't call me an expert, but I think they're risking too much with alienating loyal customers. Sure people will visit these places right now after the lockdown, but long term I don't think it's a good tactic.
 

Hulk_Smash

Banned
I am pro-UBI, but I am also pro-work. I don't blame the people who are offered just as much to stay home as they think they'd be getting from tips anyway, but I do think there is a balance to be had. This whole situation needs to be thought through before it ends with all the restaurants shutting down and the people who actually want to work losing their jobs with them.
This is what happens when you introduce UBI. The greatest motivator for working is starvation. Besides, we functionally already have UBI for the poorest in the USA (assuming you’re from the US).
Our poor already have their housing paid for or greatly subsidized, their food paid for, their education paid for, their healthcare paid for.

Really, what else do we need to give them that they don’t already have?
 

MastaKiiLA

Member
This is what happens when you introduce UBI. The greatest motivator for working is starvation. Besides, we functionally already have UBI for the poorest in the USA (assuming you’re from the US).
Our poor already have their housing paid for or greatly subsidized, their food paid for, their education paid for, their healthcare paid for.

Really, what else do we need to give them that they don’t already have?
They get shitty housing, basic food stipends, education when qualified, and shitty healthcare. Don't say it like they're getting a standard living, they're getting minimal assistance. There are not many people who voluntarily stay poor. That's not something backed up with any evidence/statistics. It's a talking point to gain support for ending welfare programs. Even then, the number of people that are homeless or regularly visiting food banks is depressing.
 

Davey Cakes

Member
They get shitty housing, basic food stipends, education when qualified, and shitty healthcare. Don't say it like they're getting a standard living, they're getting minimal assistance. There are not many people who voluntarily stay poor. That's not something backed up with any evidence/statistics. It's a talking point to gain support for ending welfare programs. Even then, the number of people that are homeless or regularly visiting food banks is depressing.
There’s nothing glamorous about being on welfare or surviving on UBI. These programs are there to provide a floor. Just because a portion of the population can (and does) make it work doesn’t mean the majority would choose to live in that non-thriving state.

We need to move beyond the mindset that desperation is a good motivating factor. Providing better chances at job satisfaction, life satisfaction, and dignity should be the goals.
 
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Bridges

Member
This is what happens when you introduce UBI. The greatest motivator for working is starvation. Besides, we functionally already have UBI for the poorest in the USA (assuming you’re from the US).
Our poor already have their housing paid for or greatly subsidized, their food paid for, their education paid for, their healthcare paid for.

Really, what else do we need to give them that they don’t already have?
I'd like to push back a little bit and say this isn't exactly what would happen with UBI. The "universal" part is important, because right now your option is either get $X to stay at home or $Y to go to work. If you go to work, you forfeit your access to $X so you're actively discouraged from pursuing work.

IF the income was truly universal, you would always have $X, but going to work would get you $X + $Y and thus substantially increase your income. Sure, some people would be content to just take the UBI and stay home, but I would think most people would rather have more money than less, so most would pursue some sort of job for the extra income.
 

99Luffy

Banned
This is what happens when you introduce UBI. The greatest motivator for working is starvation. Besides, we functionally already have UBI for the poorest in the USA (assuming you’re from the US).
Our poor already have their housing paid for or greatly subsidized, their food paid for, their education paid for, their healthcare paid for.

Really, what else do we need to give them that they don’t already have?
UBI is inevitable. Whether we have a republican or democrat president.
Within 10 years over 50% of the current workforce will be replaced with automation. The entire transportation and service industry, *poof. Even a lot of doctors will be replaced by AI.
When the trucker no longer has work can we tell him 'hey thats your fault, you should have prepared and got a degree in AI or something.' Sure we can, but that isnt really reasonable. But with UBI maybe they can get work training into something else.
 

WoJ

Member
Anecdotal, but we went to Bob Evans for breakfast today. They had now hiring signs everywhere. The restaurant was a third full, maybe a bit more, but they had a waiting area full of people wanting to eat. It was a 30 to 45 minute wait because they couldn't open fully in part due to covid restrictions that don't end until this week. And I am guessing they were short staffed as well. Probably 5 or 6 groups of people left because they didn't want to wait.
 

poppabk

Cheeks Spread for Digital Only Future
We went on a mini vacation at the weekend, and the hotel we had booked was a shambles - they didn't have the room ready because they were short staffed in housekeeping, there were people checking in and checking out minutes later because doors wouldn't close or there were bugs in their rooms. After waiting an hour past check-in, we cancelled and booked a different hotel which appeared to have ample staffing even though it was completely packed. So there is a shortage but I think that their is an ability to overcome it if the employer has the will.
 

Davey Cakes

Member
When the trucker no longer has work can we tell him 'hey thats your fault, you should have prepared and got a degree in AI or something.' Sure we can, but that isnt really reasonable. But with UBI maybe they can get work training into something else.
UBI programs already show these types of results. The money mostly goes to necessities. Not having to worry about slaving away every day to make ends meet allows people the extra time and breathing room to find (and interview for) work that’s more meaningful to them.
 

StreetsofBeige

Gold Member
UBI programs already show these types of results. The money mostly goes to necessities. Not having to worry about slaving away every day to make ends meet allows people the extra time and breathing room to find (and interview for) work that’s more meaningful to them.
This theory will be correct if:

- Avg hourly wages goes up a lot
- Unemployment rates go back down to pre-covid levels of 3.5%
- When government does a census or survey, service sector jobs (which are the brunt of McJobs) drop and better paying jobs and sectors go up

The US unemployment rate in April was 6.1%, so thats about 2.5% more than pre-covid. Each 1% is about 1.5 million people. So you still got somehwere around 3.5 - 4 million people still not back working. And probably a good portion of these are low end jobs.

And that overall unemployment rate might be understating it because in order to be part of an unemployment metric you got to be jobless and looking for a job. Anyone taking a covid payout and staying home with zero effort to find a job wont even be counted.
 
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People should cook at home more anyway.

90% of restaurants are just traps where people heat up frozen food mixed with proprietary chemical compounds and serve it to people for a very inflated price, while paying their wait-staff less than minimum wage. The other 10% that are actually good restaurants will still be there. Fast food places were going to hire robots soon anyway to do most of the work, so this was coming soon.
 

Pagusas

Elden Member
90% of restaurants are just traps where people heat up frozen food mixed with proprietary chemical compounds and serve it to people for a very inflated price, while paying their wait-staff less than minimum wage. The other 10% that are actually good restaurants will still be there. Fast food places were going to hire robots soon anyway to do most of the work, so this was coming soon.

traps? They are doing the job society wants, making us food so we don’t have to.
 
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WoJ

Member
Went out to lunch with my wife today because of the holiday and my MIL taking our daughter to the zoo. There were only two resataurants open in the area we went which surprised us. I don't think them being closed as COVID related. But both had staffing/capacity issues and were 50% empty and hour waits. Will be interesting to see what happens when the restrictions here end on Wednesday.
 

Vestal

Junior Member
Let’s be honest about something as well here. Most non chain restaurants run on razor thin margins and their owners lack for the most part any real desire to think of the oh shit moments even if they have a widely successful restaurant. It’s all about maximizing profits for the owners while maitaining cheap labor and cutting as many corners as possible.

I saw it with one of the most famous restaurants back home in PR when Maria hit. The restaurant called Ches was pretty much a staple of dinning in Puerto Rico for the last 40-50+ years, packed almost every single night from Thursday to Sunday, as well as packed all day on weekends. Amazing food, yet once Maria hit the island they closed their doors. It wasn’t that the building was wrecked or anything like that, but they simply couldn’t or weren’t willing to take the financial hit of staying closed for a couple of months while the island was mostly without power.


You can make the argument that while we look at individuals and say “bootstraps motherfucker”, we never say the same thing to small businesses or business in general. We continue to push people to open their own business and what not, while not preparing them with enough business/economic sense to plan out how to deal with emergencies and unavoidable eventualities.

We also continue to want things on the cheap side while not understanding that something being cheap comes at a cost somewhere.
 

evolvaer

Banned
In the 90s I had various PT jobs during school and summer. Busboy, waiter, working in plants wearing overalls. My best paying joib was as a waiter. The hourly minimum wage was shit. It was something like $4/hr as it's set lower than normal minimum wage. But add in the tip (and back then it was a lot more cash used) and it was by far the best paying job as a student I had.

Restaurant workers typically fit two sets. The McJob getting $10/hr. And then waiters and servers (and for you bartender) which make much more.

The typical restaurant jackass making good money serving and getting tips will never tell the world it can make bank. They'll happily stress the minimum wage set is lower than a Walmart worker by $2/hr trying to make it look like they get paid less than a fry cook. But never tell they just made $200 in tips on a weekend.

And nobody getting cash tips claims it on income tax.

For all the articles regarding food service workers you'll never see one where workers bring up tips ever.

You guys are both talking about how you got lucky and had a pulse enough to show up to a job 20 years ago.

Times have changed man, none of you would have cut it by today's standards. You're talking about a non existent age where some how being non exceptional still got you a pretty decent living.
People are killing them selves to scrape by over working and over educated and nothing pays or hires the way it did. Everything got outsourced to another country my dudes.
Money isn't worth what it was when you were in your 20's.

Wake up, christ sake.. You wouldn't last a day if you were young and poor in today's standards.
 

MastaKiiLA

Member
I bet there's no staffing issues if employees are paid a good wage. I do find it funny that some of the people moaning about the shortage of restaurant workers probably were railing against increasing the minimum wage.
 

StreetsofBeige

Gold Member
I bet there's no staffing issues if employees are paid a good wage. I do find it funny that some of the people moaning about the shortage of restaurant workers probably were railing against increasing the minimum wage.
People would be working if they didn't have lucky ass covid perks to cover them. Depending on the country and how much is paid out it could be just as much as working, which doesn't even make sense.

Easy to sit home doing nothing when still getting paid.
 
Most non chain restaurants run on razor thin margins and their owners lack for the most part any real desire to think of the oh shit moments even if they have a widely successful restaurant.

It’s all about maximizing profits for the owners while maitaining cheap labor and cutting as many corners as possible.

These are contradictory statements. They are trying to maintain the razor thin margin that allows them to operate. "Maximizing profit" is literally just keeping the business afloat + a little bit for their time and risk. Unlike the employees, the owners actually have risk and investment in the operation.
 
Brutal truth. Yes you aren’t that important. Stocking clothing stores and flipping burgers are not needs, and they can be done by anyone. That’s why their wage is lower than others.

Get a job that people need, and is in demand, and all of a sudden your wage will increase.
Burger flipping is in demand. Haven't you seen all fast food restaurants posting help needed signs?
 

MastaKiiLA

Member
People would be working if they didn't have lucky ass covid perks to cover them. Depending on the country and how much is paid out it could be just as much as working, which doesn't even make sense.

Easy to sit home doing nothing when still getting paid.
Dude, no one is living comfortably on COVID stimulus. If they are managing to do better on the meager stimulus than they would at a shitty low-end job, then that just speaks volumes about how bad the pay is at those jobs.
 

YCoCg

Member
People would be working if they didn't have lucky ass covid perks to cover them. Depending on the country and how much is paid out it could be just as much as working, which doesn't even make sense.

Easy to sit home doing nothing when still getting paid.
How do you explain places which started offering a higher wage getting a load of interest then? You seem stuck in this loop that people are lazy for not wanting to work for minimum wage and be treated like shit anymore.

Get a better job they said, so they did.
 

Davey Cakes

Member
People would be working if they didn't have lucky ass covid perks to cover them. Depending on the country and how much is paid out it could be just as much as working, which doesn't even make sense.

Easy to sit home doing nothing when still getting paid.
Lucky ass COVID perks?

Our government did the bare minimum. Pandemic UBI and/or subsidizing wages and universal healthcare would've made more sense than even having people sign up for unemployment. People got kicked to the streets at no fault of their own and were expected to bounce back in a super competitive job market like it's no big deal. That expectation was completely divorced from reality. An entire generation (or more) were already struggling to have the economic mobility that their parents had, and a large portion of the U.S. population were already living paycheck to paycheck BEFORE the pandemic.

Raising wages is a TINY demand, and meeting it will result in positions being filled. The working class people aren't the ones making this complicated.
 
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CloudNull

Banned
Great thread.....My brothers company cannot find workers because they would rather stay home on unemployment. He is now doing jobs/deliveries himself which he hasn't had to do in years since he opened the company but he also pays workers about the same that he paid me when I worked there over 10 years ago. Small businesses like his function on such small margins that they don't factor in inflation.

I am not sure what the answer is here. I have talked to him and he states that paying more would not keep his business profitable. I am not sure if this is true or just greed.
 
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StreetsofBeige

Gold Member
Dude, no one is living comfortably on COVID stimulus. If they are managing to do better on the meager stimulus than they would at a shitty low-end job, then that just speaks volumes about how bad the pay is at those jobs.
Nobody said getting covid payments is making someone live like a millionaire. But zero people should getting paid anything close to making minimum wage when laid off. And as I said, spending where and how much you got, someone on covid perks might eve getting more than working and all they do is sit home.

If you're a supporter of forever covid payments, then you support anyone sitting at home milking it with zero work ethic to get back to being a productive member of society.

How do you explain places which started offering a higher wage getting a load of interest then? You seem stuck in this loop that people are lazy for not wanting to work for minimum wage and be treated like shit anymore.

Get a better job they said, so they did.
Because they are lazy fucks who did the math and decided to stay home and get free money then wake up every morning, go to work, pay money for lunch and gas/bus.

Lucky ass COVID perks?

Our government did the bare minimum. Pandemic UBI and/or subsidizing wages and universal healthcare would've made more sense than even having people sign up for unemployment. People got kicked to the streets at no fault of their own and were expected to bounce back in a super competitive job market like it's no big deal. That expectation was completely divorced from reality. An entire generation (or more) were already struggling to have the economic mobility that their parents had, and a large portion of the U.S. population were already living paycheck to paycheck BEFORE the pandemic.

Raising wages is a TINY demand, and meeting it will result in positions being filled. The working class people aren't the ones making this complicated.
You're right. It is super competitive because many small business won't even open back up. So if many low end jobs are getting squeezed out of the market, doesn't it make sense for people working at these jobs who got let go get it back?

I've heard many things about people not going to back to work. And that is supported as the unemployment rate for both Canada/US is about 2.5% higher than precovid. Thats a ton of people still looking for jobs and not working. And a bunch will be front line service sector jobs.

So if these businesses are re-opening and wanting people back, but people dont want to work, it's due to milking covid payments.

We'll see how the metrics shake out later when more data comes in.

If you guys are thinking people dont want to go back because there's better jobs and all they needed is some downtime covered with covid payments and now they will all trend to better jobs, then the data will show it.

- Higher hourly wages
- Unemployment rate back to precovid Trump 3.5 - 4%
- Service sector jobs down. But better higher level jobs and sectors up in jobs

Let's see how true this theory is when more data comes out.
 
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YCoCg

Member
Because they are lazy fucks who did the math and decided to stay home and get free money then wake up every morning, go to work, pay money for lunch and gas/bus
You didn't answer my question, there are places that have raised their offering wages and got interest again. You still seem angry at people using this to their advantage and yet I bet you were at the front telling these people to go find a better job if they don't like it.
 
I wish that I really knew. However, things were not this bad before the pandemic. I have a feeling things will go back to normal once people stop getting paid to sit home. Why in the hell would most people get up, drive to work, and do a brain dead job, when they don't have to?

I get the minimum wage argument, but things are so much worse now that they were a year ago. It can't be all related to that.
 

StreetsofBeige

Gold Member
You didn't answer my question, there are places that have raised their offering wages and got interest again. You still seem angry at people using this to their advantage and yet I bet you were at the front telling these people to go find a better job if they don't like it.
Not angry at all.

Just giving life tips how to be successful in life. And one is dont be a lazy ass and milk the system. Get off your ass. Be considered lucky the gov and taxpayers got you covered so you can sit home.

I'm not the one struggling. It's not even that hard to get a decent education and job. You dont need to be Einstein or Elon Musk to make enough money to live off.

As for businesses offering more and people got interested? Sure. And there's also others offering jobs and perks and still cant get people back.

Low end jobs and low end companies, and the businesses already teetering on survival and someone is negotiating while getting covid perks to sit home and wait it out? Dont slum it and go back to your old job if they want you back reopening.

Dont be surprised when all kinds of data comes out showing many businesses are shut down permanently, or existing small scale businesses reopened cut back on staff if the new staff want more. Then what? Cant negotiate better wages if there's nothing left.

It's not endless money. Nobody should expect any gov or business to be an open wallet.

Have some respect and get to work.
 
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YCoCg

Member
Dont be surprised when all kinds of data comes out showing many businesses arw shut down permanently, or existing small scale businesses reopened cut back on staff if the new staff want more.

It's not endless money. Nobody should expect any gov or business to be an open wallet.

Have some respect and get to work.
Isn't this just capitalism in play though? If a business can not survive without exploiting it's workers then what is the point?

As for the last sentence, respect doesn't pay the bills when you're barely making minimum wage. For years we've told people if they don't like these crappy jobs then they should find better ones or negotiate better pay. That's what this situation has allowed many people to do.
 

StreetsofBeige

Gold Member
Isn't this just capitalism in play though? If a business can not survive without exploiting it's workers then what is the point?

As for the last sentence, respect doesn't pay the bills when you're barely making minimum wage. For years we've told people if they don't like these crappy jobs then they should find better ones or negotiate better pay. That's what this situation has allowed many people to do.
I'll give you an example of work ethic.

About 15 years ago I got laid off. It happens. Whole division restructured and I was one of them. I got roughly a 2-3 month package. Some people chill out. Some people get a new job asap. Some people go on vacation(!) for a big chill out session. Sounds counterintuitive, since you'd think losing a job wouldn't mean spending $1000s on a holiday, but some people can do it.

I got a job about a month after I got cut. Brushed up resume, called recruiters etc...... About a month later I got a job. I didn't even get one EI payment out of it.

I got my ass back to work when I could had chilled out and got a job later. So after getting the job, I actually profited as my severance was like getting an extra month or so of salary since I got a job back so fast.

And whether it was school jobs or career jobs, who they hell wants to sit at home all the time? Ok, maybe if you're a senior citizen and worked for 40 years and its time to call it quits, I dont see how anyone can just sit around collecting money all year. I was restless enough during high school when I could had just leeched off my parents for money for games and clothes. I instead got PT jobs on weekends and the summer.

There's only so much sitting around you can do. And my parents are old school. Education first during the school year. Job second. They actually preferred if I sat around studying. NO worries parents, I'll study and work.

As for the last sentence, respect doesn't pay the bills when you're barely making minimum wage. For years we've told people if they don't like these crappy jobs then they should find better ones or negotiate better pay. That's what this situation has allowed many people to do.
Big difference.

Go get a better job on your own time and money. Not off sitting at home and milking payments. If jobs are offering you to come back, don't assume covid perks will last another 20 years. It wont. Get off your ass and get back to making Whoppers if thats the job.
 
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YCoCg

Member
I got my ass back to work when I could had chilled out and got a job later. So after getting the job, I actually profited as my severance was like getting an extra month or so of salary since I got a job back so fast.
Good for you but if at the time your old job came back and was asking you to return for minimum wage with no benefits, would YOU have accepted?

Big difference.

Go get a better job on your own time and money. Not off sitting at home and milking payments. If jobs are offering you to come back, don't assume covid perks will last another 20 years. It wont. Get off your ass and get back to making Whoppers if thats the job.
And people have been doing exactly that! And yet you've got such disdain for it "shut up and make my whoppers" as if they're never supposed to better themselves.
 

nush

Gold Member
I have talked to him and he states that paying more would not keep his business profitable. I am not sure if this is true or just greed.

It's bullshit. Work it out, if he paid a worker say $10 more per hour at a 40 hour week that would be an additional $400 outgoings. and $1600 over the month. So his only margin is JUST in the staff salaries? What's he paying himself?

I think a lot of struggling restaurateurs should be forced to marathon (The British) Kitchen Nightmares. Gordon will hold a mirror up to them and hopefully some self awareness will be gained.
 

StreetsofBeige

Gold Member
Good for you but if at the time your old job came back and was asking you to return for minimum wage with no benefits, would YOU have accepted?


And people have been doing exactly that! And yet you've got such disdain for it "shut up and make my whoppers" as if they're never supposed to better themselves.
Ya I would if I didn't have a better job lined up. And milkers arent all doing that. If all these low end jobbers were getting re-employed with better jobs, the unemployment rate would be back at 3.5% and avg hourly wages would skyrocket.

During regular economic times, you cant milk EI forever too. It stops at a certain point. The gov does that to prevent someone from living off EI for 30 years.
 
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YCoCg

Member
Ya I would if I didn't have a better job lined up. And milkers arent all doing that. If all these low end jobbers were getting re-employed with better jobs, the unemployment rate would be back at 3.5% and avg hourly wages would skyrocket.

During regular economic times, you cant milk EI forever too. It stops at a certain point. The gov does that to prevent someone from living off EI for 30 years.
You've still not explained why places offering higher wages and perks have been getting massive interest though? If everyone is lazy and doesn't want to work then why are they applying to these places that have caved in and raised the wage?
 

StreetsofBeige

Gold Member
You've still not explained why places offering higher wages and perks have been getting massive interest though? If everyone is lazy and doesn't want to work then why are they applying to these places that have caved in and raised the wage?
Who says everyone in the world is lazy? And who says nobody would take a job back at better pay?

Unemployment rates peaked at 15-20% in the US and are now down to 6% in the US. So it's obvious lots of people are back to work. Still a gap to go for 2.5% more.

You should understand my messages more closely to understand work ethic and not milking taxpayer payments.

Youve been plugging this "high wages re-offered = more interest" message. Where's the tons of proof?
 
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nush

Gold Member
About 15 years ago I got laid off. It happens. Whole division restructured and I was one of them. I got roughly a 2-3 month package. Some people chill out. Some people get a new job asap. Some people go on vacation(!) for a big chill out session. Sounds counterintuitive, since you'd think losing a job wouldn't mean spending $1000s on a holiday, but some people can do it.

I got a job about a month after I got cut. Brushed up resume, called recruiters etc...... About a month later I got a job. I didn't even get one EI payment out of it.

I got my ass back to work when I could had chilled out and got a job later. So after getting the job, I actually profited as my severance was like getting an extra month or so of salary since I got a job back so fast.

You and me both my man. I've been made redundant way to many times to hang around, and the quicker I get back into work that severance like you said is a bonus. I didn't spend it though I banked it.

I do remember one time when a lot of people knew cuts were coming and were worried about losing their (dead end cubicle farm) jobs. This one woman asked me

"Why are you so calm and not worried about any of this like the others?"

To which I replied,

"I've been here before and I know exactly what I'm going to do".
 

CloudNull

Banned
It's bullshit. Work it out, if he paid a worker say $10 more per hour at a 40 hour week that would be an additional $400 outgoings. and $1600 over the month. So his only margin is JUST in the staff salaries? What's he paying himself?
I think it comes down to he feels the workers are paid enough already. He made enough profits that they were about to expand and build a building from scratch before covid. Instead of using that money to expand and reinvest in the business it become a safety net to survive. If the company had broken ground on the new building and then covid hit they probably wouldn't have survived.

I think it comes down to him prioritizing the growth of the company over paying the employees a proper wage. He kind of has the boomer mentality of "in my day I made 6 dollars an hour" while completely neglecting inflation. I know restaurants have even smaller margins than his company. Overall it's just a very nuanced situation on how the economy will rebound. Personally I hope that minimum wage is increased because of all this. I don't agree with the overall trend that productivity has increased but wages have stagnated although if that happens automation will take over. I mean that's happening already.

Was anyone here following the economic rebound after the 2008 crash? I was a youngin off in the military and never followed it. Wasn't the restaurant industry impacted pretty hard by that? I remember reading about many people changing careers because of it.
 
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StreetsofBeige

Gold Member
Great thread.....My brothers company cannot find workers because they would rather stay home on unemployment. He is now doing jobs/deliveries himself which he hasn't had to do in years since he opened the company but he also pays workers about the same that he paid me when I worked there over 10 years ago. Small businesses like his function on such small margins that they don't factor in inflation.

I am not sure what the answer is here. I have talked to him and he states that paying more would not keep his business profitable. I am not sure if this is true or just greed.
It's bullshit. Work it out, if he paid a worker say $10 more per hour at a 40 hour week that would be an additional $400 outgoings. and $1600 over the month. So his only margin is JUST in the staff salaries? What's he paying himself?

I think a lot of struggling restaurateurs should be forced to marathon (The British) Kitchen Nightmares. Gordon will hold a mirror up to them and hopefully some self awareness will be gained.
Not related to your bro's delivery business.

All comes down to price, sales and costs. Food and drink have high margins. So if a pub selling a burger/fry plate for $15 has a cost of $3 (80% margin on ingredients). And it goes up to $4 in costs. Well, to maintain margin you got to increase to $20. Or sell for $16 to just cover the $1 pure increase. Or somewhere in the middle.

Labour costs are easier to figure out and another factor. If total daily wages/benefits paid out is $500 and it goes to $600. You got $100 to cover to breakeven.

Then to cover the $100. If the pub has an overall food/drink margin of 80%, you got to sell enough extra stuff daily to cover that too. So $125.

However, businesses facing cost increases typically don't increase price just to cover the cost increase breakeven. They will boost the price to bank some profits on the increase in price and sales.
 
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nush

Gold Member
Was anyone here following the economic rebound after the 2008 crash? I was a youngin off in the military and never followed it. Wasn't the restaurant industry impacted pretty hard by that? I remember reading about many people changing careers because of it.

Did a quick check, found this informative. Yes, raising staff wages was one of the ways the Restaurant industry recovered.

 

Pol Pot

Banned
Did a quick check, found this informative. Yes, raising staff wages was one of the ways the Restaurant industry recovered.

Keep an eye on payroll (but don’t act too hastily). There are ways you can trim your payroll without making people redundant. For instance, if you can reduce server numbers on quieter nights or combine roles, you can reduce this particular overhead without causing too much staff anguish.

This part stood out to me. Staff "anguish" being already a part of an industry that offers no benefits and has the public subsidize the wages of the majority of their staff. What's a little more work for the same (or lesser) pay if profits keep flowing? If they don't like it, we'll just replace... Oh wait.
 
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Keep an eye on payroll (but don’t act too hastily). There are ways you can trim your payroll without making people redundant. For instance, if you can reduce server numbers on quieter nights or combine roles, you can reduce this particular overhead without causing too much staff anguish.

This part stood out to me. Staff "anguish" being already a part of an industry that offers no benefits and has the public subsidize the wages of the majority of their staff. What's a little more work for the same (or lesser) pay if profits keep flowing? If they don't like it, we'll just replace... Oh wait.
The food industry got Bethesda'd by the government giving wage exclusivity. We should cheer as restaurant jobs are no longer exclusive.
 
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