The liveable wage/minimum wage increase is seriously polarizing the foodservice industry.
Over the weekend I shared this article in a few food groups I belong to and was shocked at the results. Everything ranging from calling the owners of the business who added this to their receipts “jerks’ to worse…while others defended the owners saying they’re well within their rights to point out they disagree with increasing wages.
When I first came across the article I shared it to illustrate what I thought was simply a bad way for a business owner to deliver a message. I think it was in bad taste and will ultimately end up costing customers.
Unfortunately, I made the mistake of not realizing there were so many sides to this.
The first few comments to come in were simple ones, mostly insignificant one-liners or derogatory comments like, “jerks!” or “assholes”.
Every angle was explored and soon the discussion/debate turned from being about whether theses owners acted in bad taste, to whether the minimum wage should be raised, whether it should be raised so drastically, whether a business has a right/obligation to defend its stance on the matter, and how a business should defend themselves.
The name calling and insults flew.
…and more intelligent points were made…
…and some that were a further reach…
So why do I feel it’s important to show your these threads?
First, it’s important as a business owner to know how to handle yourself. Were these owners wrong for standing up for what they believe was unfair? NO.
But there’s a right way and a wrong way to do that, especially in our industry.
Second, a business owner needs to know their numbers backward and forward. You need to understand where the labor percentage comes from, what gross sales and net sales are, what your cost of goods is at all times…etc. And those are just the basics.
A majority of the commenters focused on the fact that the wage increase would hurt their profits, but a smart owner knows there are ways around that. The most obvious being that a wage increase doesn’t mean less profits. Labor is a percentage of gross sales, so if the labor percentage goes up, then sales must increase, too. This can be done in any number of ways, one simple way being to increase menu prices to compensate.
“Sales will cure all ills.”
When your business is faced with adversity, don’t complain and lash out. Worse, don’t lash out at customers. Remember, there are many ways to handle an increased cost of food, labor, or another operating cost. Believe it or not, that’s simply a natural part of doing business.
If you have questions or a unique situation you’re faced with, feel free to comment here or contact us at Serviceable. We’ll be happy to help you find the answers you need and to help your weather the storm.
We’ll be happy to help you find the answers you need.