4 ms·

The actual secret is low cost of capital and low labor costs, probably both in violation of various labor / tax / finance laws and regulations. This supposedly

The actual secret is low cost of capital and low labor costs, probably both in violation of various labor / tax / finance laws and regulations. This supposedly gave him free cash flow to invest in capital improvements. "in 1998, he scraped together the $75,000 down payment, much of it from family and others in the local Egyptian community" "One key factor: Said staffed his new location with fellow immigrants from his church, Saint Mary Coptic Orthodox Church in Lynnwood" "with the help of a broker — another member of the local Egyptian community — Said got a loan and closed the deal" "Mainly, Said checks in with his managers and staff, many of whom are Egyptian immigrants looking for their own start in America. Many are referred to Said through his church or the local Egyptian American community; some hear of Said even before they leave Egypt."

darksaints 7y ago
None of those examples are illegal, and the presumption of criminality based on circumstantial evidence, especially in the case of a minority immigrant, looks far worse for you than it does for him.
- lotsofpulp 7y ago
  I have done business with many immigrant groups, and I have no qualms assuming small businesses employing recent immigrants who aren’t fluent in local English are not following labor laws. Easiest ones to break are salaried “managers” that work 7 days a week manning gas stations.
- kyrieeschaton 7y ago
  We have copious experience with this exact business model going back decades over several economic sectors and it's not hard to see where the structural cost advantages come from. If you are, eg, properly accounting for below-market loans as income (on either side), or rigorously following overtime requirements, or equal opportunity laws, your cost advantages rapidly go away. "Maybe we make the stores nice" is not some groundbreaking innovation.
  - darksaints 7y ago
    There isn't proof of any of those things happening here.
driverdan 7y ago
Unless you like being sued for libel you'd better have evidence when you accuse someone of breaking the law.
rossdavidh 7y ago
Having talked to some immigrant workers in America about similar situations, I think the issue is a bit more nuanced than that. Yes, from what I hear, illegally low pay and benefits are not uncommon. However, there is also a lot higher sense of obligation by the employer towards the employed, since they are fellow members of a tight community. The boss is expected to put up with more of a requirement for job training, time off for family issues, etc. because if they are a jerk boss the word gets around about it in their own peer group. So, while they may not be subject to all of the same government restrictions that stranger boss-employee relations are, because of a tacit agreement not to report your own to the feds, they are also subject to a lot of extra restrictions that a stranger boss-employee relationship is not.
- lotsofpulp 7y ago
  > The boss is expected to put up with more of a requirement for job training, time off for family issues, etc. In my experience, this is not true. The boss benefits from having immigrated earlier and possibly having start up capital due to land or family assistance from the origin country. The newcomers, if related to the boss or owner, may have an advantage and be offered a piece of equity. But everyone else is just cheap labor, who have no better choice and need to grind out 5 years so they can apply for citizenship so they can then sponsor their child to immigrate.

darksaints 7y ago

None of those examples are illegal, and the presumption of criminality based on circumstantial evidence, especially in the case of a minority immigrant, looks far worse for you than it does for him.

lotsofpulp 7y ago
I have done business with many immigrant groups, and I have no qualms assuming small businesses employing recent immigrants who aren’t fluent in local English are not following labor laws. Easiest ones to break are salaried “managers” that work 7 days a week manning gas stations.
kyrieeschaton 7y ago
We have copious experience with this exact business model going back decades over several economic sectors and it's not hard to see where the structural cost advantages come from. If you are, eg, properly accounting for below-market loans as income (on either side), or rigorously following overtime requirements, or equal opportunity laws, your cost advantages rapidly go away. "Maybe we make the stores nice" is not some groundbreaking innovation.
- darksaints 7y ago
  There isn't proof of any of those things happening here.

driverdan 7y ago

Unless you like being sued for libel you'd better have evidence when you accuse someone of breaking the law.

rossdavidh 7y ago

Having talked to some immigrant workers in America about similar situations, I think the issue is a bit more nuanced than that. Yes, from what I hear, illegally low pay and benefits are not uncommon. However, there is also a lot higher sense of obligation by the employer towards the employed, since they are fellow members of a tight community. The boss is expected to put up with more of a requirement for job training, time off for family issues, etc. because if they are a jerk boss the word gets around about it in their own peer group. So, while they may not be subject to all of the same government restrictions that stranger boss-employee relations are, because of a tacit agreement not to report your own to the feds, they are also subject to a lot of extra restrictions that a stranger boss-employee relationship is not.

lotsofpulp 7y ago
> The boss is expected to put up with more of a requirement for job training, time off for family issues, etc. In my experience, this is not true. The boss benefits from having immigrated earlier and possibly having start up capital due to land or family assistance from the origin country. The newcomers, if related to the boss or owner, may have an advantage and be offered a piece of equity. But everyone else is just cheap labor, who have no better choice and need to grind out 5 years so they can apply for citizenship so they can then sponsor their child to immigrate.