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Post by Papa on Feb 27, 2024 17:16:56 GMT
Well, it depends if the increased costs affect sustainability or just lower profit margin.
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Post by Franchise on Feb 27, 2024 17:55:24 GMT
Cutting the under performing and marginal locations and focusing on the top performing locations will allow the brands to sustain. California is too big of a market to totally walk away from.
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Post by beejmi on Feb 29, 2024 22:28:28 GMT
Well, it depends if the increased costs affect sustainability or just lower profit margin. If your average wage was $!6 an hour (it was higher) and it goes to $20 an hour (it'll be higher) the restaurant would have to cut 25% of it's labor to maintain profitability. Real hard to do. So labor cost waste in operations will be found, probably some technology but ultimately it comes down to if people are going to pay your inflated price. Perhaps they will. Prices will be inflated everywhere. You're going to have to do some dollars to survive. Places doing 13k-14k-15k a week really have no chance at all.
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Post by Franchise on Mar 26, 2024 3:14:19 GMT
It has begun
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Post by beejmi on Mar 30, 2024 10:20:30 GMT
So I am not in California and perhaps the news I watch and read is slanted.
Here is what I hear
Fast Food layoffs Employee hours cut Menu price increase passed on to the consumer
Mom & pop food establishments can't afford employees now Accusations of 'theatrics' - stop paying your CEO a bejillion dollars and then you could afford employees
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Post by Franchise on Mar 30, 2024 16:21:09 GMT
So I am not in California and perhaps the news I watch and read is slanted. Here is what I hear Fast Food layoffs Employee hours cut Menu price increase passed on to the consumer Mom & pop food establishments can't afford employees now Accusations of 'theatrics' - stop paying your CEO a bejillion dollars and then you could afford employees The CEO’s metrics and goals maybe the problem but the CEO’s pay isnt really a problem. The CEO is just an easy target to pick and scream about. I think the average consumer doesn't understand that modern social justice programs may make them feel good but that they add expenses that will be passed back to them in the end. If a company does business in a state that has a high minimum wage & that same company has an internal mandate to buy their material based on ideology instead of cost then something is going to have to give. In most cases i would tend to think that the people that are complaining about the CEO’s pay are the same people voting for $20 minimum wage and demanding that materials are sustainably sourced from ideological ally's regardless of price not realizing their ideology is having more of a negative impact then the CEO’s pay check.
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Post by beejmi on Mar 30, 2024 16:47:57 GMT
My first job ever was at a Wendy's at age 16 and at age 18 I became a manager (for whatever that is worth)
There were some very good employees.
There were bad employees as well.
The bad outnumbered the good in terms of sheer numbers but if you put a gun to my head and said 'run 17% staff labor' (typical target to hit) with your payrate being $20 per hour' I would select the top 10 or 12 'really good ones'. There would be others that would get kept maybe available closing shifts or on weekends when others weren't around.
Gone would be 'Suzy Cream Cheese' that worked from 4 to 8 after school, only knew how to work the register and couldn't do anything else. Typically 16 or 17 years old.
Manager: Can you close up for us tonight ? We are short-handed Suzy: Nope. My mom says ......
Suzy would be gone. Not saying because of that instance above but typically someone young in her 'work life' with mom pulling the strings and acting like there's a test everyday that if she gets a 'C' she won't be able to graduate - they just wouldn't be 'worth it'
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Post by beejmi on Mar 30, 2024 16:52:14 GMT
Delivery drivers are toast. Outsource to Ubereats or Grubhub or Doordash. Adjust menu prices so customers using that take it on the chin.
A delivery driver that can't answer the phone and take orders over the phone isn't going to last.
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Post by benlen on Mar 30, 2024 17:20:28 GMT
S Mom & pop food establishments can't afford employees now I am not positive but I think you have to have 60 locations nation wide for the 20 bucks minimum to kick in. So Mom and Pop and somewhat safe.
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Post by benlen on Mar 30, 2024 17:29:50 GMT
Gone would be 'Suzy Cream Cheese' that worked from 4 to 8 after school, only knew how to work the register and couldn't do anything else. Typically 16 or 17 years old. In California minors (under 18 yrs old) are only allowed to work 4 hours a day , 8 on Saturday and Sunday, with a max of 24 hours a week.
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Post by benlen on Mar 30, 2024 17:30:13 GMT
S Mom & pop food establishments can't afford employees now I am not positive but I think you have to have 60 locations nation wide for the 20 bucks minimum to kick in. So Mom and Pop would be somewhat safe.
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Post by beejmi on Mar 31, 2024 8:04:40 GMT
I believe that an individual McDonald's franchisee with 10 locations is on the hook for the wage
Panera Bread is off the hook because they donate to Newsome's campaign , I mean because they bake their bread in-house
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Post by beejmi on Apr 16, 2024 3:04:47 GMT
Now every employee everywhere under $20 wants it
Can't blame them.
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Post by beejmi on Apr 24, 2024 23:48:39 GMT
More random thoughts
I believe all that is happening in terms of 'layoffs' is the bottom level employees are the ones getting cut
If the minimum wage was $16 beforehand, I would bet some of the ones that 'got kept' were already making $18-$18.50 an hour
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Post by buddypshayesmarkii on Apr 25, 2024 0:58:31 GMT
Paid $24 for two burgers, large fries and onion rings at Jack In The Box yesterday.
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