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Years ago, a local pizza restaurant named Sweet Tomatoes opened to rave reviews. The owner hired a recent college grad named Josh, and over the new few months,
by freyr 13y ago
Years ago, a local pizza restaurant named Sweet Tomatoes opened to rave reviews. The owner hired a recent college grad named Josh, and over the new few months, she mentored Josh, introduced him to her business contacts, and shared her plans for expansion.
Josh took the recipes, the business contacts, and even the expansion plans, and started a rival pizza chain. Within a short time he had 21 locations that were doing quite well.
But it all started with a big red flag. How do you think the story goes?
The restaurant began hiring illegal immigrants from the small town of Marilac in Brazil. These employees worked up to 80 hours a week, while the restaurant violated minimum wage laws and failed to pay overtime. Employees risked deportation if they spoke out. In less than a two year period, the owners failed to pay employees $425,000 in wages.
When the owners were ordered to pay these wages, they devised a scheme to recoup the money by slashing wages, resulting in a class-action lawsuit and a follow-up labor investigation.
Meanwhile, Josh bought himself a yacht, a vacation home, and a small airplane, allegedly purchased illegally with company funds.
The company eventually went bankrupt and last year its locations were sold at auction (though the original owner, with the help of some financiers, was able to buy back four locations).
When you see huge red flags, tread very carefully.
Along the same lines, when somebody starts cheating on their significant other to be with you, don't be surprised when they cheat on you to be with someone else. You're not special. You won't get special treatment.
Now I want pizza.
http://www.boston.com/business/articles/2010/12/05/a_driven_young_man_and_the_chain_he_made/ http://www.boston.com/business/articles/2010/12/05/a_driven_...
- myke_cameron 13y agoI will never forget the morning I walked by the Waltham Upper Crust location on my way to the commuter rail and watched as workers stripped the place clean. It felt like a victory for everyone who has ever been screwed by an employer and I couldn't help but linger even as I could hear the bells in the distance signaling the inbound train arriving at the station.