4 ms·

Restaurants by and large are not high revenue businesses. Most small grocers generate more revenue in 1 to 2 months than a restaurant will generate in a year.

by posguy 5y ago

Restaurants by and large are not high revenue businesses. Most small grocers generate more revenue in 1 to 2 months than a restaurant will generate in a year. It seems like restaurant owners in the US turn over often, varying from every few months to 3 years on the outside. Seems like a really stressful industry that can have good margins, but maintaining profitability is hard and consumers are quite fickle.

minikites 5y ago
How is this a justification for paying workers less than a livable wage?
- xanaxagoras 5y ago
  The only justification required is their willingness to accept it.
- posguy 5y ago
  This is not a justification for paying low wages and treating employees like garbage (eg: no notice when the business permanently closes, reshuffling schedules with no notice, poor treatment when on and off shift, etc). The current restaurant industry is a failing business model that usually harms those involved. The employees, vendors and business owners often end up destitute and with damaged bodies, hence why this industry burnt through people even pre-pandemic.
almost_usual 5y ago
Sounds like restaurants are obsolete if they can’t afford living wages.
sumtechguy 5y ago
Also look at how many chain restaurants are structured in their financing and it is not great. Usually some portion (40% or more) of the net goes to the parent corp. Then out of that you pay the lease on the building, any required decorations, and buy from locked in vendors. Both all owned by the parent corp or some sister corp. Then out of what is left you pay your employees, taxes (on the net), and yourself. You are looking at maybe 10-15% of the net to do that with too. People can say 'oh just make the wages better'. But that may literally be the difference between there being a restaurant and nothing at all. Many gas stations run the with the same model. The twist is the gas companies own the land, and the pumps, and set the price. You just run the business. Basically most of these places someone 'bought a job'. Think I heard somewhere that places like McDonalds is one of the largest land owners in the world. Yet most of their stores are not 'corporate'.

by posguy 5y ago

minikites 5y ago

How is this a justification for paying workers less than a livable wage?

xanaxagoras 5y ago
The only justification required is their willingness to accept it.
posguy 5y ago
This is not a justification for paying low wages and treating employees like garbage (eg: no notice when the business permanently closes, reshuffling schedules with no notice, poor treatment when on and off shift, etc). The current restaurant industry is a failing business model that usually harms those involved. The employees, vendors and business owners often end up destitute and with damaged bodies, hence why this industry burnt through people even pre-pandemic.

almost_usual 5y ago

Sounds like restaurants are obsolete if they can’t afford living wages.

sumtechguy 5y ago

Also look at how many chain restaurants are structured in their financing and it is not great. Usually some portion (40% or more) of the net goes to the parent corp. Then out of that you pay the lease on the building, any required decorations, and buy from locked in vendors. Both all owned by the parent corp or some sister corp. Then out of what is left you pay your employees, taxes (on the net), and yourself. You are looking at maybe 10-15% of the net to do that with too. People can say 'oh just make the wages better'. But that may literally be the difference between there being a restaurant and nothing at all. Many gas stations run the with the same model. The twist is the gas companies own the land, and the pumps, and set the price. You just run the business. Basically most of these places someone 'bought a job'. Think I heard somewhere that places like McDonalds is one of the largest land owners in the world. Yet most of their stores are not 'corporate'.