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This is a dubious statement for a number of reasons. Let's just use raw analysis. If a restaurant's current labor budget is 30% of revenue, and the restaurant
by chrisco255 5y ago
This is a dubious statement for a number of reasons.
Let's just use raw analysis.
If a restaurant's current labor budget is 30% of revenue, and the restaurant's profit margin is 3% and the cost of labor increases by 10%, how much profit is the restaurant making now? If the restaurant owner wanted to maintain a 3% profit margin in such a scenario, how could they do it?
- tekstar 5y agoYour raw analysis ignores things like staff turnover and quality of work
- supernovae 5y agoFYI, Chipotle CEO makes ~14 million a year. A normal salary for CEO could go a long way to improving stores and pay for some.
- missedthecue 5y agoThat salary dividend among the workforce of Chipotle is $4 a week, pennies an hour, and the company wouldn't have a CEO. And his salary is only $1.2M, the rest is performance incentives and so forth.
- Jtype 5y agoWhile I agree that CEO pay is obscene, that money wouldn't do much. What is the percentage of CEO pay to annual expenses and revenues?
- deleted 5y ago[deleted]
- youngNed 5y agoI make it just shy of a 3% increase in total costs. But i suck at maths/ num_staff = 15 curr_staff_pay = 7 curr_staff_costs = num_staff*curr_staff_pay curr_labour_budget_pc_revenue = .3 curr_staff_costs = num_staff*curr_staff_pay print(f"Current Staff Costs: {curr_staff_costs}") curr_revenue = (curr_staff_costs/curr_labour_budget_pc_revenue) prof_pc = .03 curr_profit = round(((curr_revenue/100)*prof_pc), 2) print(f"Current Revenue: {curr_revenue}") print(f"Current Profit ({prof_pc}%): {curr_profit}") other_costs = curr_revenue - (curr_staff_costs+curr_profit) print(f"Other Costs: {other_costs}") #%% increase = .1 new_staff_pay = curr_staff_pay+(curr_staff_pay*increase) new_staff_costs = num_staff*new_staff_pay print(f"New Staff pay is: {new_staff_pay}") print(f"New Staff Costs are: {new_staff_costs}") new_total_costs = other_costs+new_staff_costs print(f"New_total_costs: {new_total_costs}") increase = new_total_costs-curr_revenue print(f"% increase = {(increase/curr_revenue)*100}")
- redanddead 5y agoThis guy should be CEO