In the spirit of trying to make a worthwhile discussion of this, I'm doing my best to follow your comments, and re-doing the P&L when you point out valid concerns. You seem to want to be confrontational. I'm just trying to get the model right. So let me address your points 1-5. 1. This was originally part of a discussion with Piezoe about moving to a minimum wage of $15 right away. There was no proposed increase over time. You chose to insert yourself into the discussion, I didn't ask for your opinion. This is fine, I don't mind talking with you, but that wasn't the spirit of the discussion with Piezoe. If we want to change the variables of the hypothetical now based on your rules, we can. but we're changing them. 2. See point #1 3. Again, whether they are earning min wage or not is irrelevant. The total labor cost for a restaurant is in the area where these businesses operate. So if I drop the labor cost per hour, I will have to drop the revenue to keep it in the range where businesses operate. That will result in the same disparity between models. 4. Total Labor adds up perfectly. It is MGMT Comp and Ben + staff Comp + Staff Ben. Right there, right in front of you. I just checked it for a 5th time. 5. So now we're getting into the discussion of what the owner could do to help the business at 15/hr - which was the whole point of the discussion. Happy to talk about what he could do. but we must first reach agreement on the financials. They are generic because it doesn't matter. All that matters is the % cost of labor. And it IS divided between hourly v. salary. That's why there is a MGMT number in there (that is salary). Says you. Both places I talked to gave me numbers. Googling further shows that this % (30.8% of gross sales) is not - by any stretch of the imagination uncommon. You're not supposed to do anything. Again, you inserted yourself into this discussion. I'm happy to have it, but be constructive and lets get the model to the point we agree, and THEN we can discuss actions to mitigate what is a very obvious disparity in profit due to the wage hike. Or we can just go back and forth pissing on things if you feel that adds more value. This is nothing other than random attempts at flaming. I am not in the restaurant business. Again, if you want a constructive conversation, I welcome it. If you just want to act like a dick, kindly do so elsewhere?
What bothers me is that the few people who argue against raising the minimum wage never talk about the fact that many of these workers are receiving government benefits. As if that’s not a tax on all of us. Would you rather pay the tax to the government for those workers or pay $.80 extra for a “value meal?”
You do understand that the government benefits never go away correct? Your argument is false-premised and we've no interest in it.
Wages, not mandated minimum wages should keep up with inflation. -----By the by, mandated minimum wages fuel inflation.
Wrong. Benefits like food stamps and housing assistance are means tested. Meaning they decrease as income increases.
No. those limits will increase as well. This is what's called creeping socialism. Democrat and Socialist policies are based upon feelings.-----Conservative policies are based upon facts and common sense.