Minimum Wage Increase Impact/Effect

NEW -> Contingent Buyer Assistance Program
I just got back from having lunch here. Apparently, these kiosks are all over the place now and not just at this restaurant. I hear they're in a lot of different restaurants. You can order appetizers, drink refills, desserts, call your server, and pay. Not waiting for a check means higher table turnover. At this place, they've cut back on labor and increased the servers' table coverage area.

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I agree with the minimum wage increase. Everything cost more so this is justifiable. In the end more income just meant more money to spend. And it will have a direct impact on the local economy.
 
Urban Plates hasn't wasted any time in raising their prices. What originally was a great meal for $10 has quickly reached $12 and up to $16 for a cafeteria experience. Such a shame.
 
Kangen.Irvine said:
Urban Plates hasn't wasted any time in raising their prices. What originally was a great meal for $10 has quickly reached $12 and up to $16 for a cafeteria experience. Such a shame.
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SoclosetoIrvine said:
http://anonhq.com/wendys-autonomize-6000-locations-fight-wage-increases/

Told you folks this would happen in my earlier post  :-X
Wendy's will lay off all cashier's...will move to automated at all locations

Whoever signed that law in should've known this would happen.  It was sold as a way to provide enough income for those minimum wage workers, but in reality it's going to take away their previous jobs.  I think it was a cop out by the government to provide less welfare but now they will be in a tough spot again.  Wonder if they will reverse the change and find a compromise at $12/hr or something. 
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They're doing it at before the wage increases take effect.  They can do it when faced the increase now or if the wage increases were not done, they'd do it two years from now when the cost the of the technology becomes competitive against the $7 minimum wage.
 
All too obvious and predictable. Our political leaders in this state are such fools.


Leaving for Las Vegas: California's minimum wage law leaves businesses no choice

Still, if not for the $15 minimum wage, I?d have zero interest in leaving California. In some ways, it?s an ideal time to make clothing here. There's a huge demand for American-made apparel, and the industry infrastructure that exists in Los Angeles ? from garment makers to sewing machine repairmen ? is difficult to find elsewhere. But businesses can?t operate at a loss. 

Today, it?s cool to be a tech startup in Silicon Valley, but not to be an apparel industry startup in the San Fernando Valley. That needs to change. Not everyone has the inclination or aptitude to write code for Google or Facebook. Moreover, the lifespan of tech startups is shockingly short: 30% to 40% collapse and another 40% get bought, putting people continuously on the hunt for the next job. That is no way to live or to raise a family.

We need more stable, blue-collar jobs in places like the San Fernando Valley ? the kind I thought I was helping create. California, however, has put up a giant ?Go Away? sign. If President-elect Donald Trump is interested in learning more about the hurdles to adding manufacturing jobs in America, looking at the Golden State?s steep pay requirements would be a good place to start.

http://www.latimes.com/opinion/op-ed/la-oe-salem-minimum-wage-20170102-story.html



 
When I think of "stable, blue-collar jobs" I don't imagine those jobs paying less than $15/hour. Is Trump's plan to create lots of jobs in America that pay under $30k/year? Um..hooray?
 
tim said:
When I think of "stable, blue-collar jobs" I don't imagine those jobs paying less than $15/hour. Is Trump's plan to create lots of jobs in America that pay under $30k/year? Um..hooray?
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When the California government forces wages on business sounds like Cuba?
 
Some restaurants I used to avoid due to their high prices are now looking more reasonable because their lower priced competitors have increased their prices more than them! Even though it's a couple bucks, %-wise it's pretty huge and I just can't get past the % increase.
 
woodburyowner said:
Some restaurants I used to avoid due to their high prices are now looking more reasonable because their lower priced competitors have increased their prices more than them! Even though it's a couple bucks, %-wise it's pretty huge and I just can't get past the % increase.
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Me too... 
 
Labor as a % of revenues is pretty high (behind food costs) when it comes to retail businesses like restaurants so not surprising that higher wages will lead to higher prices.  Obviously there will be a limit to how high they can raise their prices before they start losing business.
 
It's no mystery, the answer is right in the article itself.

http://www.eastbaytimes.com/2017/01/24/whats-behind-the-spate-of-recent-bay-area-restaurant-closures/

What?s behind the spate of recent Bay Area restaurant closures?

Upward of 60 restaurants around the Bay Area have closed since the start of September alone, with many citing difficulties like the cost of finding and keeping good employees, rising rents, new requirements for providing health care and sick leave, and doing it all while competing with the slew of new dining options.

In an industry where profit margins are slim, making it hard to raise wages or invest in recruitment tools, Bednarz explained, ?we have little leverage? when it comes to hiring.
 
#TheyFailed.

It's a simple formula, your competitor makes a better product, sells it for more and pays the workers more than you.  You can't pay your workers, you can't hire workers, you can't keep your business open.

Here's 93 replacements for them from Sept to November alone. http://sf.eater.com/2016/9/7/12840202/restaurants-opening-soon-san-francisco-bay-area-fall-2016

morekaos said:
It's no mystery, the answer is right in the article itself.

http://www.eastbaytimes.com/2017/01/24/whats-behind-the-spate-of-recent-bay-area-restaurant-closures/

What?s behind the spate of recent Bay Area restaurant closures?

Upward of 60 restaurants around the Bay Area have closed since the start of September alone, with many citing difficulties like the cost of finding and keeping good employees, rising rents, new requirements for providing health care and sick leave, and doing it all while competing with the slew of new dining options.

In an industry where profit margins are slim, making it hard to raise wages or invest in recruitment tools, Bednarz explained, ?we have little leverage? when it comes to hiring.
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morekaos said:
It's no mystery, the answer is right in the article itself.

http://www.eastbaytimes.com/2017/01/24/whats-behind-the-spate-of-recent-bay-area-restaurant-closures/

What?s behind the spate of recent Bay Area restaurant closures?

Upward of 60 restaurants around the Bay Area have closed since the start of September alone, with many citing difficulties like the cost of finding and keeping good employees, rising rents, new requirements for providing health care and sick leave, and doing it all while competing with the slew of new dining options.

In an industry where profit margins are slim, making it hard to raise wages or invest in recruitment tools, Bednarz explained, ?we have little leverage? when it comes to hiring.
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Why didn't you use this quote:

Sal Bednarz, who has owned Oakland?s Actual Cafe for seven years, shut the doors there and at his adjacent Victory Burger restaurant in late December after his struggle to find and keep good employees became ?critically bad? in the past two years.
Decades-low unemployment across the Bay Area ? 4 percent in the East Bay and 3.5 percent in the South Bay ? means that restaurant workers can enter other industries or move to other restaurants. Bednarz said candidates often have not showed up for job interviews.

And the high cost of living here is driving many workers in restaurants and retail (typically lower-wage positions) to other cities and states.
 
Its a circle jerk.  They have had forced living wage laws there for years that have driven up cost of living by artificially raising wage costs that raise all costs.  Its a failed experiment that that article can't bring itself to admit...I used that article because of its astonishing denial and its groping for any other excuse but the obvious.
 
eyephone said:
California's minimum wage isn't the problem. The cost of housing is
http://www.latimes.com/opinion/livable-city/la-ol-minimum-wage-housing-20170105-story.html

My comment:
Look at the bias media. It's called supply and demand for housing. The rent prices are high because there is demand for it. If someone wants to live in a good location they have to pay for it.
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More proof that these boneheads lack the most basic understanding of human nature or economics.  Want to know how to make your "poverty" wage calculation work out?  Don't have kids till you can afford it! Live within or below your means until you afford more!! Work hard and pay your dues like all the rest of us who also had minimum wage jobs at some time in our lives. If you can't afford to live here work hard so you can or do what many are doing...move to the food, don't depend on the gov to force others to subsidize you!! That is what a forced wage is.
 
eyephone said:
California's minimum wage isn't the problem. The cost of housing is
http://www.latimes.com/opinion/livable-city/la-ol-minimum-wage-housing-20170105-story.html

My comment:
Look at the bias media. It's called supply and demand for housing. The rent prices are high because there is demand for it. If someone wants to live in a good location they have to pay for it.
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Didn't the previous administration do everything it could to keep housing prices from failing?  Didn't they know the consequences?
 
spootieho said:
eyephone said:
California's minimum wage isn't the problem. The cost of housing is
http://www.latimes.com/opinion/livable-city/la-ol-minimum-wage-housing-20170105-story.html

My comment:
Look at the bias media. It's called supply and demand for housing. The rent prices are high because there is demand for it. If someone wants to live in a good location they have to pay for it.
Click to expand...

Didn't the previous administration do everything it could to keep housing prices from failing?  Didn't they know the consequences?
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Keeping the interest rate super low?
 
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