Quote:
Originally Posted by iggy_oi
From what I read it seemed like an upset owner trying to gain appeasement, he even makes a couple of contradicting statements in his rant. At one point saying he needs to make job cuts and reduce hours to make up the $130k shortfall, to then claiming it will bankrupt him. He actually provides a lot of good information to really drive home how broken his business model must be.
He claims to have used about 26000 in man hours to run his restaurant. So that would equal about 71 hours used per day, or about 9 full time workers. At the current minimum wage rates he is paying approximately $800 in labour each day. In 3 years he will be paying $130k annually or $356/day more in labour. Now assuming his labour hours calculation did not include himself, in order for him to still be making a $130k annual profit when the minimum wage goes to $15/hour, he would need to be currently making a $712 profit per day on his investment of $800 per day on labour alone. Even if he was only currently making $500/day profit it would still be profitable after the wage increase. If he is currently only making a profit of $356/day(which would indeed bankrupt him with the wage increase), then his return on his current investment is not very good to begin with and sadly would likely be made worse with rising food prices and a loss in business due to the economy. In which case it might help to have some currently minimum wage paid workers to be given a boost so they can maybe become patrons at his restaurant and pass the boost on.
|
If $15/hour is debatably a living wage as you've claimed, how would they be able to afford going out to restaurants?