How much you think there is to tighten? Restaurants run on thin margins. Let’s play with numbers.
Say this guy profits $1,000,000/yr., ALL profit. And he gives up every penny of that to make payroll. Let’s say his labor and risk are worth nothing. I’m OK with that. Hell, you’re lucky to take a loss, for years, starting a business, let alone break even.
At $20/hr., that’s 50,000 manhours he can employ. But not really. An employee pocketing $20 probably costs his employer $40. OK, 25,000 manhours. That’s about 480 hours of work per week he’s able to use. So 12 employees? Spread over 4 restaurants?
And notice the part where he said $20 was rock-bottom? And higher-level employees will need more to keep them on?
So instead of saying fuck it and pulling the plug and selling his assets, he’s trying to tighten up, keep those people on the payroll. And gets demonized for it.
Thank you for coming to my TED Talk. In our next Talk we’ll be bitching about sky-high fast-food prices.
tl;dr: Y’all seeing billionaires and megacorps raiding the economy and conflating them with guys like this.
IIT: Buncha people who have never worked payroll and have no clue how it works.
You have just calculated that he can hire 12 more people from the current profits (with made up numbers). That’s not what’s in question here. He’s already got the people and needs to pay them marginally more.
Your numbers are wildly off. The raise amounts to 4$, your going from 20$ and jumping to 40$ is irrelevant because the employees are already employees, the only cost increase here is the 4$ extra per hour.
So you’re looking at closer to 200k manhours based off your calculations or around 100 employees.
He runs 4 restaurants, and with that million dollars in profit he could cover the raises of 100 employees, and I highly highly doubt he’s running anywhere near 25 employees per restaurant.
How much you think there is to tighten? Restaurants run on thin margins. Let’s play with numbers.
Say this guy profits $1,000,000/yr., ALL profit. And he gives up every penny of that to make payroll. Let’s say his labor and risk are worth nothing. I’m OK with that. Hell, you’re lucky to take a loss, for years, starting a business, let alone break even.
At $20/hr., that’s 50,000 manhours he can employ. But not really. An employee pocketing $20 probably costs his employer $40. OK, 25,000 manhours. That’s about 480 hours of work per week he’s able to use. So 12 employees? Spread over 4 restaurants?
And notice the part where he said $20 was rock-bottom? And higher-level employees will need more to keep them on?
So instead of saying fuck it and pulling the plug and selling his assets, he’s trying to tighten up, keep those people on the payroll. And gets demonized for it.
Thank you for coming to my TED Talk. In our next Talk we’ll be bitching about sky-high fast-food prices.
tl;dr: Y’all seeing billionaires and megacorps raiding the economy and conflating them with guys like this.
IIT: Buncha people who have never worked payroll and have no clue how it works.
If he had left it at “I’m raising prices”, then no one would have an issue with what he said.
The rest of it is just him being a giant asshole
Everyone except dumbasses with no critical thinking skills understands that in order to pay people a living wage, prices have to adjust accordingly
You have just calculated that he can hire 12 more people from the current profits (with made up numbers). That’s not what’s in question here. He’s already got the people and needs to pay them marginally more.
Your numbers are wildly off. The raise amounts to 4$, your going from 20$ and jumping to 40$ is irrelevant because the employees are already employees, the only cost increase here is the 4$ extra per hour.
So you’re looking at closer to 200k manhours based off your calculations or around 100 employees.
He runs 4 restaurants, and with that million dollars in profit he could cover the raises of 100 employees, and I highly highly doubt he’s running anywhere near 25 employees per restaurant.