5 ms·

You should definitely post the names of these businesses

lotsofpulp 5y ago
See almost any franchised business. Dunkin Donuts, 7 Elevens, mid to lower end motels/hotels, gas stations, etc. It also happens in other businesses (everyone wants to pay for the least amount of redundancy), but it is especially pernicious in service businesses that are on demand 24/7 operations and the staff simply being physically available is the value they provide (as opposed to businesses that can close or the work can be delayed by a day or two). For example, in a 24/7 operation, if one of the cashiers/front desk clerks/etc quits, then the manager has to fill in. Owner says manager cannot pay more than $x, and it could take weeks to find someone willing to take the job for $x. Or the people that are willing to take the job for $x are going to bounce in a short time or be unreliable, but the owner can afford to keep this wage at the low $x because they have a manager getting the $35k to $50k who is willing to work 80 hours a week. Edit: You should have seen the stink that most of the small business owners I know threw when Obama's administration increased the minimum wage for overtime exempt workers: https://www.huffpost.com/entry/obama-overtime-rules_n_573cab1fe4b0646cbeebc682 https://www.huffpost.com/entry/obama-overtime-rules_n_573cab... On that sole basis, most of them voted Republican in the 2016 election. And because they trust Republicans not to take away their 1031 exchange for real estate transactions. https://www.shrm.org/ResourcesAndTools/legal-and-compliance/employment-law/Pages/Judge-Strikes-Down-Obama-DOL's-Overtime-Rule.aspx https://www.shrm.org/ResourcesAndTools/legal-and-compliance/...
- codyswann 5y ago
  No. No. I'm asking you about the small businesses you specifically mentioned. What businesses are you talking about?
  - lotsofpulp 5y ago
    Those are the small businesses. Dunkin Donuts, convenience stores, 7 elevens, motel 6s, holiday inn expresses, subway, jimmy johns. They are all franchised to individual owners or a small group of partners and usually have 5 to 25 employees or so at most. In these businesses, being a "manager" simply means being the fall guy for the owners and the on call person. Many times it is the owner themselves, but over the years, they can move themselves up. I saw that happen much more years ago though, new entrants do not seem to be able to move up.
    - codyswann 5y ago
      And these owners all told you how they manage their franchises?
      - lotsofpulp 5y ago
        Not all of them, but I believe it to be a significant fraction, if not most of them. It is basically part of the franchise business model, and quite frankly, if they did not do business the way they did, then they would lose business to their competitors due to pricing too high.

See almost any franchised business. Dunkin Donuts, 7 Elevens, mid to lower end motels/hotels, gas stations, etc. It also happens in other businesses (everyone wants to pay for the least amount of redundancy), but it is especially pernicious in service businesses that are on demand 24/7 operations and the staff simply being physically available is the value they provide (as opposed to businesses that can close or the work can be delayed by a day or two). For example, in a 24/7 operation, if one of the cashiers/front desk clerks/etc quits, then the manager has to fill in. Owner says manager cannot pay more than $x, and it could take weeks to find someone willing to take the job for $x. Or the people that are willing to take the job for $x are going to bounce in a short time or be unreliable, but the owner can afford to keep this wage at the low $x because they have a manager getting the $35k to $50k who is willing to work 80 hours a week. Edit: You should have seen the stink that most of the small business owners I know threw when Obama's administration increased the minimum wage for overtime exempt workers: https://www.huffpost.com/entry/obama-overtime-rules_n_573cab1fe4b0646cbeebc682 https://www.huffpost.com/entry/obama-overtime-rules_n_573cab... On that sole basis, most of them voted Republican in the 2016 election. And because they trust Republicans not to take away their 1031 exchange for real estate transactions. https://www.shrm.org/ResourcesAndTools/legal-and-compliance/employment-law/Pages/Judge-Strikes-Down-Obama-DOL's-Overtime-Rule.aspx https://www.shrm.org/ResourcesAndTools/legal-and-compliance/...

codyswann 5y ago
No. No. I'm asking you about the small businesses you specifically mentioned. What businesses are you talking about?
- lotsofpulp 5y ago
  Those are the small businesses. Dunkin Donuts, convenience stores, 7 elevens, motel 6s, holiday inn expresses, subway, jimmy johns. They are all franchised to individual owners or a small group of partners and usually have 5 to 25 employees or so at most. In these businesses, being a "manager" simply means being the fall guy for the owners and the on call person. Many times it is the owner themselves, but over the years, they can move themselves up. I saw that happen much more years ago though, new entrants do not seem to be able to move up.
  - codyswann 5y ago
    And these owners all told you how they manage their franchises?
    - lotsofpulp 5y ago
      Not all of them, but I believe it to be a significant fraction, if not most of them. It is basically part of the franchise business model, and quite frankly, if they did not do business the way they did, then they would lose business to their competitors due to pricing too high.