Posted on 02/05/2007 8:18:10 AM PST by george76
Before Amendment 42 passed in November, some restaurateurs weren't concerned about a minimum wage increase, but as it turns out, the law is impacting restaurant budgets significantly.
"It's a huge change," said Barb Richard, marketing manager for the Dillon Dam Brewery. "We've had to tighten our belt everywhere, from ads to raises, and cut costs dramatically. (But) there's no way to absorb it completely."
Eric Mamula, owner of Downstairs at Eric's in Breckenridge, said he's paying his waitstaff $75,000 to $80,000 more annually because of the amendment, which calls for waitstaff to earn a minimum of $3.83 an hour, up $1.70 from the previous minimum. When the Dam Brewery's management team analyzed the additional cost, it came up with tens of thousands of dollars a year, ...
"It's already expensive to go out, and it's going to be even more expensive," Mamula said. "I don't know if people realized that when they voted."
Meanwhile, the waitstaff isn't benefiting much.
"They're paying much higher FICA, and we're paying much higher FICA. And the capital for raises isn't there anymore," ...
Perhaps most concerning is the fact that the increase is tied to the Constitution, which means it's no longer in the hands of policy makers.
"To us, it was not well conceived," ... "We could not understand why it belonged in the Constitution..."
(Excerpt) Read more at summitdaily.com ...
In exchange for higher pay, said Sen. Kennedy, D-MA, my bill would require that minimum-wage workers increase their service to their employers and customers to some federally-mandated minimum levels. "
This man is obviously drinking some of his Dad's good stuff--it goes to his brain much quicker.
Someone please tell me how you LEGISLATE anyone giving better performance for more money with a law?
There would be more sense in Federally-mandated minimum standards for persons in Congress, including this buffoon.
The inmates are truly in charge of the asylum....
When did the new minimum wage law take effect? I was under the assumption that it (the proposed law) hasn't even gone to committee as of yet much less become law.
Many states have implemented their own minimum wage increases.
In Missouri the state operated senior meal program has reduced service in some counties due to the increase in the minimum wage.
Perhaps most concerning is the fact that the increase is tied to the Constitution, which means it's no longer in the hands of policy makers.
"To us, it was not well conceived," ... "We could not understand why it belonged in the Constitution..."
What constitution might this be? P.S. How does one italicize quotes in html?
A minimum wage is meaningless if illegal aliens are working off the books. I don't think I've been to a MacDonalds in twenty years that wasn't exclusively staffed by illegal aliens. That's why they've resorted to using pictures of food on their cash registers, and using numbers instead of names for meals. The way to help the working poor is to end slave imports from Mexico. The use of migrant workers to suppress wages is, as the infallible doctrine of the Catholic Church states (in contrast to the Marxist f@ggots who run so much of the US church), "an unspeakable crime, which cries out to the Heavens for vengence. (Rerum Novarum)"
OTOH, any restaurant that is affected by the minimum wage hike deserves to go out of business, and probably makes you sick anyway.
The minimum wage puts Spongebob out of a job.
Why not just pass a law that makes us all rich? It worked real well in the USSR...
ARe you against speed limits on highways? They are set at some arbitrary number. Your reasoning is: "if 65mph is safer, why not 10mph?"
Wow. That's a dumb analogy. Do you want to take it back, or do you want me to tear it apart?
This is a very good analogy.
Do you want to take it back, or do you want me to tear it apart?
Be my gest, tear it apart!
What is so sacred about the price of labor? Would you advocate price controls for all things or are you just selective for your own self interest?
My wife and I hardly ever eat out any more. Parking is a pain, when you're done you gotta wait for your bill, etc., it is VERY time consuming and it is, frankly poor stewardship of our money. If we enjoyed it more, that last thing would not apply of course.
We really like to prepare, eat and clean up for meals together. It is something we discovered in our 40's. And when your done, your AT HOME. It really is win/win.
Wages should be set by the market and not artificially by the government, especially nationwide. Presumably the $1.70 rate is the market rate and the menu prices are computed using that rate. If you lowered the rate to $1.00, you would be hard-pressed to hire someone who would be williing to work for that amount.
Box of spaghetti
Two jars of sauce
Parmesan Cheese
Head of Lettuce
Vidalia onion
Two green peppers
Loaf of frozen garlic bread
Package of Italian Sausage
Bottle of Italian Dressing
Ice Tea Mix
This grand feast for four cost just under $30.
I swung by one of the neighborhood Italian restaurants and picked up the to go menu. On Tuesdays they have a special on Spaghetti and sausage. Includes salad, garlic bread and soft drink. $7.95 each (eat in or take out).
If I took it out, I wouldn't have to tip a waitress. We also wouldn't have to cook ourselves (which saves us time and energy costs) and clean up is easier.
It has opened some interesting conversations regarding food costs in our house. While "eating out" has its costs, in some ways it could be cheaper, depending on what is being eaten.
I guess the recent increases in the minimum wage will probably push the scales back to making eating out a treat. Too bad...
But the $30 worth of stuff can be used to make a LOT of meals. To do this seriously, take the items (like the salad dressing) and compute only the part of the total cost that was used for a single meal.
And here is another twist: There is almost certainly a quality difference.
Because the labor is what human beings do.
Would you advocate price controls for all things or are you just selective for your own self interest?
People are not things. If your Free Market god does not want to recognize it, to Hell with him (where he and his worshipers belong)!
Read about dignity of labor here: Centesimus annus
If the most of their earnings are tips then $1.00 or even $0.00 might be accepted. What the heck, if they find people desperate enough, the pay could be NEGATIVE. Hideous!
You guys make Socialism look good.
It is fairly obvious that you fail to grasp the basic essentials of capitalism, which is no surprise since you grew up in a Communist society.
Labor is a basic commodity just like the food, lease costs, supplies, electricity, etc. that make up the owner's operating costs. These costs determine the prices on his menu and what his profit margin will be. The owner must also compete with other restaurants for customers. The bottom line is that in order to stay in business, the owner must be competitive.
If the government artificially sets the prices for labor, the owner must compensate in other ways if he wants to retain the same profit margin being mindful that higher costs and prices could reduce the number of customers. Reducing costs in other areas could make the business less profitable and less competitive.
Only about 2% of the American labor force works for the minimum wage. It is for entry level people, teenagers, and parttime workers. 29 states have higher minimum wage rates than the one passed by the federal government. The US unemployment rate is less than 5%, which is essentially full employment. The French and German socialists would love to have this level of unemployment. The free market works.
Americans can pick and choose their jobs so it is not a matter of hiring desparate people. Raising the minimum wage does make illegal aliens more attractive as a source of cheap labor.
I worked in a restaurant while in high school and a bar/restaurant while in college. Tips can be a very lucrative source of income in good restaurants and one of the advantages is that you can under-report the amount for tax purposes. Working for a $1.70 an hour is just a small part of the actual wages. I am sure you could find people who would work just for tips in some of our more upscale restaurants. You can easily pull down $400 or $500 a night.
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