I'm a California restaurant operator preparing for the $20-an-hour fast-food wage by trimming hours, eliminating employee vacation, and raising menu prices
The increase was $4. The article kept using percentages to make it seem like some big scary change, but the increase is 1 meal per hour per worker. I'm pretty sure any half decent restaurant can handle that extra $4 per worker hourly.
But no, the solution is clearly to just nuke your vacation policy so you can save $1000 per worker per year. Yeah okay.
Mark owns fatburger franchises and he and his family are BARELY scraping by... They only took two European vacations last year and their kid that just turned 16 had to get a tesla instead of electric Porsche? It's just not sustainable and this ASSAULT needs to stop or hard working vampires like Mark and his loved ones suffer.
Edit: oh, that's weird... Autocorrect formed "families" into "vampires".
Boohoo, a capitalist that owns 4 restaurants is passing the costs of labor on to their customers and is still blaming us for it. Sounds like the playbook of an abuser.
If paying people what they are worth causes businesses to fail, then that is just Daddy Capitalism working right?
If a business cannot survive paying its employees a liveable wage then it should not exist. Businesses that do not pay a livable wage but can afford to are exploiting its employees.
The paid vacation he's eliminating was capped at 72hrs per year. He warns that high schoolers will have a tough time competing with more valuable employees, but this is due to the wage increase only applying to fast food. Also, the big layoffs in in-house delivery are similarly due to the narrow scope of the law which excludes gig workers.
"Landlords won't lower their rents"-- these things take time.
Eliminating employee vacation, as though he was already offering them some extravagant amount of paid time off. And what does he think cutting hours will accomplish? You either have enough people working the store, or you don't. Running a skeleton crew and overworking your people isn't going to be sustainable, not when literally every other fast food place is paying at least as much as you and they have choices.
I REALLY want to see the last few years of profit margins that these asshats are earning that are so vital to maintain that they are “forced” to pass the financial hit on to their workers (who are doing ALL the actual work).
"If the minimum wage goes up, they either have to increase prices so that they can cover the increased expenses for labor, or they're going to have to consolidate their labor and let people go," Lederman told BI. Thanks Lederman, you tone deaf douchnozzle. Why can’t they earn slightly less profits so everyone can, I dunno, live their fucking lives?
He should probably just close his stores, saving the public from ever accidentally ingesting his disgusting food.
Two Pizza Hut franchisees, who own hundreds of stores in California, are eliminating their in-house delivery fleets. The labor-gutting strategy has left 1,200 drivers without jobs
Sooo....are they going to rely on Doordash and Uber Eats exclusively? Doesn't that come with significant uncertainty? Isn't this guaranteed to result in fewer orders being fulfilled?
Friendly reminder that the "restaurants have razor thin margins!" is a lie. Their margins might seem slim, but doing huge amounts of sales means big money.
Prices are based on supply and demand, neither of which involves employee wages, so this guy is lying about the reason. Wages affect profit. If a company is increasing prices, it's because they think demand will support it. This guy can lie to his customers for a bit saying it's because of the wage increases to try to squeeze something out of people, but ultimately, people will start buying somewhere else and he'll need to lower prices again to balance demand.
The other things, trimming hours and denying vacation, are things they constantly do, with or without wage hikes, so again, he's lying about the reason.
fast food margins are really thin. Not razor thin, but very thin
the biggest single outlay is labour. It's a huge percentage, and I remember it to be like 35% of costs
a 25% bump is not insignificant to the biggest cost with margins so thin
I invite someone with more recent time in fast food who knows better to correct me. My experience is 25 years old and I only got as high as shift manager before I got a better job related to my field.