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IF there's a fixed cost for employee wages, then $2 more to one person would come at $2 less from another. As he states, "Theoretically, it seems like there wo
by jmagoon 13y ago
IF there's a fixed cost for employee wages, then $2 more to one person would come at $2 less from another.
As he states, "Theoretically, it seems like there would be ways to free up more money for labor, and there are some methods that help. In the end, though, restaurant-going is so prevelant that the expectations of the market — for price, quality, ambience, and so forth — are pretty well set in every dimension. And the cost of meeting those expectations is pretty well set, too."
Which means his entire experiment is how to increase revenue that can be directly allocated to wages without decreasing the quality of his tomatoes or the cleanliness of his carpets.