Restaurant Ads ‘Minimum Wage Fee’ To Checks
This restaurant owner objects that he now has to pay servers $8 an hour instead of $7.25, and so he is letting his customers know by adding an item to each check called “minimum wage fee.”
Via the Star Tribune:
Oasis Cafe owner Craig Beemer said the fee is needed to offset the 75-cent wage hike that took effect Aug. 1, the first time Minnesota’s minimum wage has increased in a decade. Even with only half a dozen servers, Beemer says it will cost him $10,000 more a year to pay servers $8 an hour instead of the federal rate of $7.25 an hour. Instead of adding it on to food prices, he added the “minimum wage fee” — the only restaurant known to do so in Minnesota so far.
It’s set off a firestorm of debate on Facebook and in the east metro community, with one customer calling the cafe Wednesday to demand a refund and others taking to Facebook to encourage people to boycott the roadside cafe.
“We’re shocked at what’s going on,” manager Colin Orcutt said of the public response. “We’re all appalled at the response for just protecting his employees. We’re just doing what we have to do.”
No, Colin, you don’t “have to” do it. You are doing it as a protest and without generosity of spirit one would hope for in a caring employer.
fancypants August 8th, 2014 at 9:38 pm
think of it as an oil company who advertises 3.90 a gal. one day then decides to charge you 4.25 the next.
what comes around Goes around
j4ckl3 August 8th, 2014 at 11:47 pm
Yes and 30 years ago i was paying how much for gas. I don’t recall the oil compnies deciding “You know what, I’m not going to turn over the cost hike to the customer.” Oh and change in a day. How about 3-4 times in a day?
fancypants August 8th, 2014 at 11:53 pm
it depends on those ( who have gotten the oil from the same place for over 40 yrs ) want to jack up the price. some call them “speculators ” others call them wall street crooks. Lately they have put the blame on winter blend vs summer fuel ??? you can figure it out from here
burqa August 8th, 2014 at 9:39 pm
Skinflint.
Can’t stand skinflints.
Anomaly 100 August 8th, 2014 at 9:39 pm
Happy workers bring more business. Workers that hate your guts might reflect that. Just a thought.
Eric Trommater August 8th, 2014 at 9:44 pm
Yeah way to blame the little guy. Why is it always the working stiffs who get stiffed and scapegoated. It’s like all the problems in the world are somehow caused by the working class wanting to feed themselves and keep a roof over their head.
MIAtheistGal August 8th, 2014 at 9:48 pm
And happy workers don’t quit so you save on training costs, too.
fancypants August 8th, 2014 at 9:48 pm
why would you hate an employer who compensates for min wage ? I would be more inclined to think this employer likes to poke the gop in the eye with an * on their receipt. Cool idea
Anomaly 100 August 8th, 2014 at 9:51 pm
Because he’s cheap.
fancypants August 8th, 2014 at 9:55 pm
if you except a min wage job ? cant say I agree
Anomaly 100 August 8th, 2014 at 9:55 pm
Some people have no choice and need to pay their bills.
Eric Trommater August 8th, 2014 at 10:04 pm
In the DC area where I live there are 160 applicants for every open job.
Anomaly 100 August 8th, 2014 at 10:05 pm
Exactly. And people have children who have to eat.
Eric Trommater August 8th, 2014 at 10:07 pm
I know and if they are like mine you have to feed them every day too! lol. It sucks. Even if you feed them 4 times one day you still have to feed them the next. It never ends.
Anomaly 100 August 8th, 2014 at 10:08 pm
Damn kids!
Eric Trommater August 8th, 2014 at 10:02 pm
Not everyone was smart enough to finish college. It’s not like I could get a job as a nuclear tech but decided to sell dog and cat food because I thought it’s be less work or more fun. At the end of the day you take what the man gives you but that doesn’t mean it is all you are worth or you shouldn’t fight for more. no one should work 40 hours a week and not be able to feed their family ever. . . and don’t even get me started on the part time scam.
A rising tide raises all boats my friend.
fancypants August 8th, 2014 at 10:14 pm
your not telling me something ive already been through ( never sold pet food ) I can say ive worked for some very cheap employers and 99% of them tell you what to expect on a hourly / daily basis. There used to be affordable employer legal services when I was in my teens, try and find one today ? There used to be overtime pay at most employers too. Extinct in todays employment as a matter of fact I don’t even see it advertised anymore. So why sweat the small details when someone in federal legislation is working hard for the employer ?
Eric Trommater August 8th, 2014 at 9:54 pm
The owners also made several public statements about how unfair they think minumum wage laws are and how over paid they think their employees are because of tips.
fancypants August 8th, 2014 at 9:57 pm
I guess that cash register will be his worst enemy LOL
Anomaly 100 August 8th, 2014 at 10:11 pm
They’re not poking the GOP in the eye. They’re Conservatives: https://www.facebook.com/pages/Oasis-Cafe/114768435202466
fancypants August 8th, 2014 at 10:21 pm
if conservatives have to eat ? they are sticking it to them. Not all read facebook unless they want to complain online or can be blocked by this employer
Anomaly 100 August 8th, 2014 at 10:30 pm
You’re missing the point. Perhaps you should read the restaurant’s post on Facebook. The customers should not have to cover their cost because the management is cheap.
Tommy6860 August 8th, 2014 at 10:03 pm
I agree with this. I’ve gotten really excellent food served to me by what was an obviously unhappy server. I know I did nothing wrong, but i could tell that having to wait 6+ tables during a peak period of the day is not an easy task.
Anomaly 100 August 8th, 2014 at 10:07 pm
I was a waitress a long time ago and it really is a difficult job, not only emotionally because you have to deal with the public, but also physically.
Tommy6860 August 8th, 2014 at 10:14 pm
I don’t make a lot of money, but when a server really makes me smile, gives me great service, even if the food isn’t that great (which isn’t the servers fault) I typically give a 25% tip. Many people take mediocre meals they get out on the server not only vocally, but in gratuities, while the cook gets a pass on the ear-shots. Servers deserve more money, they are diplomats of the restaurant industry.
Anomaly 100 August 8th, 2014 at 10:18 pm
I tip about the same. If I didn’t want to tip I wouldn’t eat out.
John Tarter August 8th, 2014 at 11:10 pm
Well, in your restaurant you can pay them $15.00 per hour.
Anomaly 100 August 8th, 2014 at 11:20 pm
Jinkies, thanks for telling me what I can do!
Eric Trommater August 8th, 2014 at 9:41 pm
It’s a convient tax dodge disguised as a protest. A service charge helps them avoid the state sales tax and so the 0.35 cents is 100% profit.
mea_mark August 8th, 2014 at 9:49 pm
That may not be a legal tax dodge. It would be interesting if this ends up in court.
juicyfruityyy August 8th, 2014 at 10:07 pm
Sounds like a Restaurant’s version of 501 (C). Everyone seems to try to avoid paying taxes.
granpa.usthai August 8th, 2014 at 10:51 pm
what I was thinking too. I went through an accountant error audit for tax year 2010 back in 2012. The first IRS lady I was talking with in Atlanta told me their computer systems were set up at different levels to catch as many errors as possible. Year 1 being the highest, year 2 (thank you very much) being next, and year 3 ending at about $10,000.00. Their computers run in a continuous 24/7 cris-cross variable accounting random patterns that pick up differences in numbers. (nothing personal: just electronics). I think, being that the add-on fee is after taxes, and by his own admission, Mr. Breemer is knowingly shaving off about $10,000.00 with documentation, it’s a pretty sure bet he’ll be receiving a greetings from the Federal, if not the State as well, somewhere around April 15th, 2016 – if not before. Owed Federal Taxes are not covered by bankruptcy, business or personal.
mea_mark August 8th, 2014 at 9:42 pm
$9 for a burger and he is griping about paying his employees minimum wage, I would boycott the place just because they charge too much.
Tommy6860 August 8th, 2014 at 9:55 pm
I agree with your premise of his griping. But there is one thing about beef, it is expensive and $9 for a burger would be about par for price (unless he’s selling White Castles sizes), just say’n. Still though, I worked in a restaurant as a cook in my teens, and the owners we had were nothing like this ham-head. They actually took a small % of the profits for themselves on a monthly basis and shared the rest with workers, insurance and upkeep and they still lived the high life. Back then minimum wage was 2.25/hr.
Eric Trommater August 8th, 2014 at 9:55 pm
Actually where I live $9 for a burger isn’t bad. You can’t even eat at 5-Guys here for that.
mea_mark August 8th, 2014 at 10:13 pm
If you have to work more than an hour to buy a meal, you aren’t getting paid enough. Either the burger cost too much or the pay is too little. Something is definitely out of whack.
Carla Akins August 9th, 2014 at 6:09 am
Great, now I want 5 Guys.
juicyfruityyy August 8th, 2014 at 10:05 pm
For that price, the burger must be 5 inches thick and serve on fresh home-made bread. With 2 side orders and a drink!
juicyfruityyy August 8th, 2014 at 10:01 pm
I think that the customers should take him to court. The lawsuit would cost more than him giving his employees a decent minimum wage. Then all the employees should quit and shut down his business.
Anomaly 100 August 8th, 2014 at 10:08 pm
Oy! I haven’t seen you around in ages. Are you OK?
juicyfruityyy August 8th, 2014 at 10:11 pm
I’m fine, thank you, I decided that I needed to take a break. Glad to see you still burning the oil!! Staying out of trouble?
Anomaly 100 August 8th, 2014 at 10:17 pm
Good to see you. I’ll never stay out of trouble. It’s not in my nature.
I hope the break means you got lots of rest and/or had a blast.
RioBravoHombre August 8th, 2014 at 10:21 pm
If their business plan is based on paying their employees a wage they cannot live on, their plan is fatally flawed, and they deserve to go out of business.
John Tarter August 8th, 2014 at 11:07 pm
If he is not paying enough, why don’t his employees go work somewhere else? Is he holding them hostage and making them work there?
I have an idea, the next time you go out and eat ask the person serving you how much they are making per hour. If the amount is not what you think they should be making you can make up the diff e fence with YOUR OWN money.
fancypants August 8th, 2014 at 11:25 pm
I would rather make a difference at the voting booth
Dwendt44 August 9th, 2014 at 12:26 pm
Where is this “somewhere else” you speak of?
With all the jobs the Republicans help ship overseas, there is no ‘somewhere else’ for most folks. I know of several diner employees and grocery check out staff that work two or three jobs to make ends meet due to low wages and zero benefits-they even pay for their meals there.
RioBravoHombre August 9th, 2014 at 2:14 pm
The era of screwing your employees, and telling them to get welfare from the state is ending. Get used to it. Pay a living wage or go out of business. Why do you oppose your family and neighbors being paid a wage they can live on? How does it benefit you, or this country, to screw employees?
mark-o August 9th, 2014 at 9:27 am
Better yet, stop eating at his restaurant. If he thinks 35 cents an order is expensive, imagine how much bankruptcy will cost. Of course, he would never declare bankruptcy, because that is a government program designed to let people out of their responsibilities and obligations, and only poor welfare people do that. It would be inconsistent with his patriotic, entrepreneurial principals.
granpa.usthai August 8th, 2014 at 10:35 pm
Don’t know what the Minnesota State Tax laws are, but seems to me that if he’s adding the fees AFTER the tax, he’s shorting the State? That’s money that the restaurant is taking in from the customers tax free. May not seem like much, but over a years time it could add up to more than $10,000.00 – just like Mr. Beemer has knowingly stated. It should set off the Federal IRS Alarm in about 2 years as that’s the level the computers running non stop 24/7 are set at.
Obewon August 8th, 2014 at 10:45 pm
Can’t he add anymore sawdust to his burgers? He must’ve hit the sawdust helper limit!
John Tarter August 8th, 2014 at 11:03 pm
And that’s what minimum wage laws do – drive up prices. Nothing exists in a vacuum and someone has to pay. So are you libs happy now?
Anomaly 100 August 8th, 2014 at 11:18 pm
“libs”?
You’re so original.
fancypants August 8th, 2014 at 11:23 pm
when min wage reaches about 14 hr they might be happy and who knows maybe the gop will get the hint and stop spreading welfare in the middle east
Obewon August 8th, 2014 at 11:28 pm
J.T. Wayout your coveted Big Mac would rise a measly 50 cents IF Mc’D’s passed on costs of a living wage of $14/Hr up from $7.25.
All U.S. wages total a mere 7% of U.S. record $16.2 T GDP = 7 cents per $1 income.
j4ckl3 August 8th, 2014 at 11:41 pm
Oh look, another dumbass. Libs? Really?
Eric Trommater August 9th, 2014 at 12:21 am
Are you really that short sighted? We live in an age of 0% interest rates and you think the inflationary pressure of wages going up lower than the actual rate of inflation (a lot lower) is somehow inflationary? Nothing exists in a vacuum alright. In point of fact keeping prices artificially low by supressing the cost of labor is something even Adam Smith warned about
mark-o August 9th, 2014 at 9:21 am
Yeah, I am completely happy with that. I would pay an extra 35 cents for my (apparently) God given right to a Blue Bacon Burger because more money in the hands of people who are going to spend it will result in more business activity and a better economy. Every other cost of doing business is subject to inflation except minimum wage. That is morally unfair and economically unwise. Not to mention greedy and douchy.
raincheck1956 August 10th, 2014 at 6:44 am
What does it do when employers pay their employees such low wages, they become eligible for food-stamps, paid for with tax dollars… only to be demonized for being “takers” by you and your ilk… I realize this will have a huge impact on your finances… but trust me… you will survive.
Ronald Ramsey August 8th, 2014 at 11:26 pm
Alan is right, you’re just doing in a protest, but is going to backfire on you. the rest of and industrialized modern-day nations, pay a living wage! i believe that if your employees have to be subsidize from the government for they can have a lifestyle that they can get shelter, food and healthcare their employer to pay a subsidized tax at 50% of standard of living in that area
fancypants August 8th, 2014 at 11:32 pm
let us know when you come up with a way to pay our bills by allowing corporations to skip into other countries for 17% or lower tax rates. You cant police the world and have both so choose wisely ……..
Ronald Ramsey August 9th, 2014 at 12:19 am
what does your statement have anything to do with the subject matter
fancypants August 9th, 2014 at 12:24 am
you seem to think we are part of a global effort ? im reminding you that we are miles apart on many issues. if you cant relate to that you have no business complaining about the mess we are in.
Eric Trommater August 9th, 2014 at 12:35 am
Here is the difference. If I choose to go without electricity and either live in a hut of a dorm style work camp, as the people who work for pennies and hour overseas do, they will take my kids away from me for child neglect. The prevailing philosophy is “feel lucky you have a job,” in America . Profits are at an all time high. Inflation is negligable. Wages are actually keeping prices artificially low to the point the the FED now has to basically give money away in order to keep employment at the embarassingly low rate it is at. This is because of a a lack of consumer buying power among the consumers who actually spend the largest percentage of their income.
fancypants August 9th, 2014 at 12:48 am
Feel lucky you have a job in America ? boy that’s an original gop line. The next complaint you will hear is ” how are we going to pay down the national debt ” most likely from Boehner. Hey lets join hands like they did in congress ?
http://youtu.be/09uv6rALCOs
j4ckl3 August 8th, 2014 at 11:40 pm
Dumb people. Guy made an ass of himself.
Wingsfan81 August 9th, 2014 at 12:35 am
Paul Saginaw, owner of Zingermans Deli in Ann Arbor MI pays his workers $15 to $21 an hour, offers employer sponsored health insurance, paid time off, retirement plan. All while his prices are pretty reasonable for what you get. Yeah it’s not McDonalds prices but then again, it’s not McDonalds. And seeing their business is thriving, I guess people agree. You get what you pay for. His workers are happy so he has VERY little turnover, his customers are happy because they get great food made by happy employees at a reasonable price. “Paul Saginaw, Ann Arbor, MI
Paul Saginaw is Co-Founder and
Chief Spiritual Officer (CSO), of Zingerman’s Community of Businesses. The
“community” is a network of 9 brand-connected, owner-operated run businesses
that are permanently rooted in Ann Arbor. Some highlights of the Zingerman’s
culture include good wages, health benefits, paid time-off, classes on open book
finance for all employees, and a Community Chest fund built from profits to meet
employees’ emergency financial needs. With Zingerman’s as its sponsor, Paul
founded a nonprofit food rescue program, Food Gatherers, which currently
provides 7 tons of nutritious food daily to agencies countywide, serving as a
board member for 25 years and now as Director Emeritus.”
fahvel August 9th, 2014 at 3:29 am
every business does it. Wages go up, rices go up. Price of fuel goes up, prices go up. What’s the point of this article?
mark-o August 9th, 2014 at 9:15 am
The point is this owner making this a big public temper tantrum by printing on his receipts that the cost is going up due to minimum wage. You are right in your assessment, and almost everyone realizes that higher wages will result in higher costs to the customer, and most people are ok with that. The point is this guy is a dick.
mea_mark August 9th, 2014 at 1:43 pm
He is also charging more than necessary to make up the difference. He is lying about the true cost of paying more in Wages.
raincheck1956 August 10th, 2014 at 6:21 am
BOOM! Nailed it!!…..
tiredoftea August 9th, 2014 at 3:01 pm
Approvve
Pistol-Packing August 9th, 2014 at 6:56 am
Ummmmm, just a question here while everybody is arguing back and forth. But I remember when I was working in restaurants, servers were paid a very minor amount and the majority of their wages were made in tips. Granted, we are talking 20 years ago, and that wage at that time was like 2.01 an hour, and that was basically to cover the taxes.
I dont know what the current wage for servers is, anybody care to chime in with the answer?
Rusty Shackleford August 9th, 2014 at 7:40 am
Depends on the state, but it can go as low as $2.13 provided the difference is “made up” in tips (unreliable at best).
Pistol-Packing August 9th, 2014 at 7:55 am
I dont disagree with that statement, But if a server is being paid $7.25 an hour plus tips, wouldn’t that drastically increase their wages to well over the $8.00 this story is reporting?
Asher Frost August 9th, 2014 at 8:21 am
depends on the area and the amount of tips. Also, with a step like this, the people who see it are less likely to tip at all.
EarlFargis August 9th, 2014 at 8:25 am
What’s ironic is people, according to this post, are upset over the fee yet nobody’s upset over the menu prices. Look at the sample check pictured. Why would someone have a cow over a 35 cent charge to raise the minimum wage and have no problem paying 50 cents to had jalapenos to a burger?
Rusty Shackleford August 9th, 2014 at 8:40 am
Well then maybe tips would be able to be treated as an optional reward for exemplary service, rather than an obligation to your server so they don’t starve.
As it stands now, people treat them as a carrot-on-a-stick anyway, so it’s not uncommon for servers to get screwed over when people stiff them on the tip that the government ASSUMES they’re getting.
Pistol-Packing August 9th, 2014 at 9:29 am
I dont know. I am not sure that people treat tipping as a carrot on a stick. I think people understand that is what is expected when you go to a restaurant.
Granted, My tipping is based on the service I receive, not entirely on the amount of the bill. As an example, I usually deduct liquor from the total, but will add something for the service aspect. (Just as an example, if someone orders a 100 bottle of wine, should that go towards the grand total that one would tip 15-18% on?)
Cosmic_Surfer August 9th, 2014 at 9:03 am
The fact is that many people don’t tip – it is inconsistent at best and then there are the days no one shows up at the restaurant yet the staff still has to be there…not the fault of the server.
I live in a City notoriously bad at tipping (a little town that grew too fast because it’s a state capitol). Compared to say, NYC where one tips everyone for everything (and well they should) from postal workers to the guy cleaning the sidewalks to the construction workers fixing a curb.
That said, I know plenty of restaurant workers…I also know it’s next to impossible to support a family on inconsistent tips that can range from $0 to $200 a shift depending on the house and clientele (oh thank you sir, now I can buy that extra slice of cheese I had my eye on for the past 6 months) but take a drastic hit when one has to tip out their bus, bar and back, host and server. At $10-$20 each, that leaves exactly a negative sum on bad days.
TheAmused August 9th, 2014 at 10:10 pm
I have yet to meet a server, especially in an “at-will” state that makes more than the $2.13/hour base wage. I was told by some servers that they were designated as “contractors” so their employers wouldn’t have any responsibility for them. ARGHH!!!!
bahlers August 17th, 2014 at 6:25 pm
Back in the 70s the main waitress at the local cafe was making over $200 a week, solely in tips.
EarlFargis August 9th, 2014 at 8:12 am
My understanding is during the big federal minimum wage debate in the 1990s Congress restaurant lobbyists who were the biggest obstacle got an agreement that the minimum wage for servers on tips would never go up beyond $2.13 in exchange for everyone else getting more. It hasn’t been raised since the mid-1990s.
I’m a regular at a local restaurant and have gotten to know very well a number of servers there. Bottom line? They’re adults supporting themselves and in at least one case young children and to a person are poor. I tip 25%-30% but have felt sorry for one woman who is struggling to feed her kids even on Food Stamps I’ve felt like simply emptying my wallet on the table. Another adult woman near retirement age (but who will have to work until she drops) who has waited tables her entire life drives a wreck of a car her daughter’s boyfriend bought her (out of pity). Last time I talked with her it wouldn’t pass state inspection and she couldn’t afford to repair it.
Talking to a number of servers, the $2.13 is a joke. They never see a dime of it because it’s deducted as taxes from their check. I would think they’d get most of it back at their pathetic incomes after they file but I neglected to ask.
EarlFargis August 9th, 2014 at 7:52 am
Not mentioned in this all this ‘analysis’ missed is the fact how little the fee is. 35 cents? Really? When people think nothing of adding cheese to a burger for more? Not to mention adding a Coke for $2 or more. It’s sad this owner is filling his diapers over paying his workers a little bit more realizing $8 per hour is still a pitiful non-living wage.
Is it safe to bet this clown is equally upset he can’t offer them any health benefits. So sad, too bad if you break your leg. Oh, and don’t expect me to pay you for any sick days you miss. Because I care so much… well, not that much.
Dwendt44 August 9th, 2014 at 12:14 pm
Waite staff is rarely paid straight wages to begin with. The get ~$3 an hour and are expected to make up the rest in tips. So the $8 minimum wouldn’t apply to waitresses.
EarlFargis August 10th, 2014 at 5:36 pm
But reading the blog post, it makes it read like the servers are getting the $8. A mistake on their part or does Minnesota set a higher minimum wage by state statute?
Dwendt44 August 10th, 2014 at 6:10 pm
Per findlaw:
As of August 2014, the minimum wage for large employers will be raised
to $8.00 per hour, with the small-employer minimum wage rising from
$6.15 per hour to $6.50 per hour. Because Minnesota’s small-business
minimum wage is lower then the Federal Minimum Wage, only small
businesses grossing under $500,000 a year that do not engage in
interstate commerce may pay their employees the lower minimum wage.
Minnesota has an additional statute making a minimum wage of $5.25
legal for businesses with a gross yearly income of $625,000 or less, so
this is the rate applicable to businesses not covered by the Federal
Minimum Wage.
bahlers August 17th, 2014 at 6:23 pm
That’s obviously before taxes, wages, utilities, and other business expenses. So how much can he really be taking home after paying an additional 10k to employees?
causeican August 9th, 2014 at 7:53 am
No taxes were paid on the minimum wage fee. Is that legal in Minnesota?
Dwendt44 August 9th, 2014 at 12:12 pm
It’s legal everywhere. The wages are a cost of doing business and it’s tax deductible.
MIAtheistGal August 9th, 2014 at 8:18 am
I’m doing the math in my head, and it’s just not adding up. He’s charging 35 cents a table, but that implies that each server only averages two tables per hour. I’ve not been a server since a very short stint in high school, but I recall having more than two tables at any given time during a shift and definitely more than two per hour!
This guy is not only not going to lose money, he’s going to make additional money off his fee, and sales tax fee, possibly, at that, according to earlier posts!
Cosmic_Surfer August 9th, 2014 at 8:44 am
In the trade, one figures a turnover every 30 minutes to an hour depending on the type of restaurant (higher for fine dining, lower for diner). At the peak of rush, that could be a 4-10 time turnover per table or counter stool in a diner type restaurant…
This guy has turned a bullshit political talking point into major profit center. Hopefully, the customers will leave. Unfortunately, he will still make money on America’s willfully ignorant.
mark-o August 9th, 2014 at 9:11 am
And yet, the all the other costs of doing business increase annually and business owners barely bat an eye. He is already paying more for supplies, power, maintenance etc., but somehow needs to make this public display of his inherent douchiness because the const of his employees has gone up? Poll after poll shows consumers don’t mind paying more to provide a better wage for workers. I wish I were visiting MN soon, so I could go out of my way to not eat at this restaurant.
bahlers August 17th, 2014 at 6:18 pm
You act like an additional $10,000 out of the business owner’s revenue is chump change. News flash, restaurant owner’s aren’t particularly wealthy people.
mark-o August 18th, 2014 at 3:58 pm
They pass the cost on to customers, so your argument is not terribly compelling. We as consumers pay for the higher wage. In this case, it seems to be 35 cents a table. Most customers won’t notice a difference. People with higher wages will spend those on groceries, gas, etc. More money in the economy is better for everyone. Not rocket science here.
RK Johnston August 9th, 2014 at 10:40 am
He’s a business owner–but he’s a greedy little business owner!
(Apologies to Daffy Duck.)
–RKJ
bahlers August 17th, 2014 at 6:16 pm
I must have missed this in economics class, but are you stating that a business owner has a primary goal aside from being as profitable as possible?
R.J. Carter August 9th, 2014 at 12:21 pm
I for one applaud this restaurant owner’s honesty and transparency. He could have simply built it into the price of the food and nobody would have known a thing. But by doing it this way, people know exactly why his costs have gone up.
Obewon August 9th, 2014 at 1:44 pm
Notice how the owner’s graft guesstimate isn’t time-wage-cost based, but fleeces another +50% = 35 cents, of the 70 cent 7% sales tax?
The entire U.S. gross wage cost totals a mere 7% annually of U.S. record $16.2 T GDP = 7 cents per $1 sold. So using his burger joint math, he’s over-billing customers, as if his wage-hike was +50% = $10.87/Hr! I’ll bet he also bags tea for David Koch!
R.J. Carter August 9th, 2014 at 2:53 pm
Cheap? He’s actually spending more money on register tape in the long run, just to let people know why they’re paying more for their food.
arc99 August 9th, 2014 at 5:47 pm
If we want a complete picture of this then the receipt should also have a space to ask everyone coming to that restaurant if the increase in the state minimum wage enabled them to spend more money than they would have previously, and if so how much more.
I have a hunch that it will be a lot more than $0.35 per table.
Rocket Don August 11th, 2014 at 4:03 pm
Of course minimum wage earners will have a little more money to spend, but that money has to come from somewhere, which means that other people will have a little less money to spend – in this case it’s the restaurants customers who will have a little less money to spend. You cannot create wealth by simply giving someone a raise…