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> The issue is business owners who want to earn some ridiculous multiple of what their employees do. The haircut should come from their profits. Profits for mo
by ThrowawayR2 9y ago
> The issue is business owners who want to earn some ridiculous multiple of what their employees do. The haircut should come from their profits.
Profits for most restaurants are razor thin relative to the amount of work the owner puts in and risk taken, so I'm not sure what the relevance of what you're saying is. The average restaurant owner isn't that much better off than their employees.
- wolco 9y agoThey do take big risks. The average restaurant in a big city will set you back half a million on the cheap side. But owners are no way on par with employees.
- humanrebar 9y agoEven when accounting for losses? Employees don't lose money when the business struggles or fails.
- TheAdamAndChe 9y agoRight, but their average pay isn't nearly as good as the business owner's. Most restaurant workers live paycheck to paycheck, have no healthcare, and no leverage. While there is risk involved in being an owner, it's still a much better position to be in than a minimum-wage worker. It's also a matter of a return on capital vs return on labor. Business ownership can grow exponentially as profits are reinvested. For the worker, though, returns are linear based on hours work. And since they mostly live paycheck to paycheck, they can't exactly invest much free cash without living with their parents or something, which many workers don't.