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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRestaurant owner: “I reject the argument that livable wages and profits are mutually exclusive”
http://www.eoionline.org/blog/restaurant-owner-i-reject-the-argument-that-livable-wages-and-profits-are-mutually-exclusive/It is a cruel irony that many of the 13 million men and women who produce and serve the food in my industry are forced to use food stamps to feed themselves and their families. The average, full-time, fast food worker earning $7.25 an hour makes $15,080 a year, 20 percent below the poverty rate for a family of three. Contributing to this situation is the fact that the subminimum wage for tipped workers has been frozen at $2.13 per hour for more than two decades. In the absence of meaningful action from industry groups like the National Restaurant Association to alleviate this crisis, I believe, as a restaurant owner and food service entrepreneur, we need to raise the federal minimum wage now.
Our success at Zingermans with over 30 years of operating and opening food-related businesses was not achieved by underpaying or withholding benefits from our employees. From day one, my sixteen partners and I have paid wages above the federal minimum and offered company-subsidized health care and paid time-off. We have never considered these critical costs of doing business obstacles to profitability or our annual compounded growth rate of 10 percent.
I reject the argument put forth by many in the restaurant industry that livable wages and profits are mutually exclusive. Our experience at Zingermans proves exactly the opposite and I am not convinced we are exceptions to any rule. To prove taking the high road is viable, the Zingermans Community of Businesses in Ann Arbor has joined RAISE, an alternative restaurant association of successful establishments all across the nation, and we are honored to partner with businesses, like DCs Busboys and Poets, Detroits Russell Street Deli, Chapel Hills Vimalas Curryblossom Cafe among nearly 100 others, who are committed to a high-road approach to labor practices. Our success stands in direct opposition to the false claims about livable wages and profits that have dominated the debate for decades. We are uniting to prove to the rest of the industry investing in our employees has been a driving force to our growth and success, not an impediment.
malaise
(269,200 posts)Truth will out
Egnever
(21,506 posts)I am not sure i can afford to eat there though. A Rueben is $13.99...
Having said that I think many businesses have been doing it ass backwards for a long time. Support your employees and they will support you. Costco is a company that does this like Zingerman's , it shows every time I walk into Costco.
LuvNewcastle
(16,858 posts)how important his employees are. Well-paid employees are conscientious and hard-working. In restaurants, controlling waste and making customers happy are two of the biggest concerns. Waiters and cooks care more about those things when they're paid well. They want their boss to be successful, so they care more about his interests and making him profits.
Keeping your employees happy makes a better work environment and it carries over into customer satisfaction. Bosses who pay their workers as little as they can get by with are screwing themselves as much as their employees, and they deserve to fail.
skepticscott
(13,029 posts)but they empower them to give good service. But they do also expect a lot from them, and they are very fussy about who they hire. On top of that, their food is expensive. They have a very lucrative higher-end niche in a fairly affluent community, but it's a place where a lot of people couldn't afford to eat. I'm not convinced that their model can work for fast food in general.
safeinOhio
(32,729 posts)Moo Cluck Moo in Ypsi and you can see that the model can work for fast food. A NY deli in A2 won't be cheap, but the line at the counter is an indication that the price is right. If the prices were any less, the line would reach to Main St..
ybbor
(1,555 posts)A little further away, but also VERY good, and proving the same is true.
skepticscott
(13,029 posts)AT ALL for fast food, but in general, for businesses trying to run hundreds or thousands of outlets, I have yet to be convinced that it can.
And the length of the line is more an indication that the food is very good and that Zingerman's is well branded. They've made themselves a destination, and they don't have to compete on price within the limited clientele that they serve.
Barack_America
(28,876 posts)Top end, locally sourced, organic, amazing. It's not fair to assume the cost is all due to wages.
And I disagree with the notion that's it's only for the affluent. It is fully possible to get a full meal for under $20 at any of their establishments. It might out of the reach for the "I don't feel like cooking, lets take the family out", go to, but it's definitely do-able for the every-other-week or once a month dining experience.
And, really, most of us don't cook enough at home and depend on crap prepared food anyway. But that's another discussion (that ultimately comes back to the thrive-able wage).
skepticscott
(13,029 posts)How many single mothers on a limited budget, with three kids in tow do you think patronize Zingerman's for lunch or dinner? It's not super expensive fine dining, but it's a long way above McDonalds for most pocketbooks.
And yes, the food is great, and with high quality food, well-trained, well-paid, devoted employees who love food add value. At McDonalds, there's only so much value you can add that people are willing to pay for, either in quality of food or quality of employee. That single mother at McDonalds wants something fast, cheap and that her kids like to eat. She probably doesn't care if the nuggets are from cage-free chickens, or if there is locally made artisanal cheese on the burgers, or if the person serving her can expound on Spanish olive oils, and even if she does, she may not be able to indulge those whims.
BrotherIvan
(9,126 posts)We should not see McD's as an option for anyone. There are many articles that discuss the "food deserts" in poor neighborhoods where bodegas and grocery shelves are empty, totally devoid of fresh foods. That cheap McDs meal has tons of hidden costs, not the least of which is her children's health. My friend had a son who had a cavity in every one of his baby teeth! Once we discussed diets and changed the way his family prepared meals and he learned some easy recipes (his wife was too busy shopping to cook) his soon started having trips to the dentist with no cavities. I am always shocked that people think a cavity or two is just the way it is when it is in fact a sign of major nutritional deficiencies.
When I lived in NYC, there were always ethnic restaurants with very inexpensive choices. Cheaper than fast food meal deals and cheaper by far than a pizza. There is a way to obtain good healthy food if you make it a priority. I wish more people would pool their food preparation the same way people pool childcare or car pooling. It saves time and money and makes for a much healthier alternative. We are just educated to think that non-food fast food is the only alternative.
And I'll bet those $13.99 deli sandwiches are enough for two kids at the very least. Any deli worth its salt makes gigantic plates and I can never get through more than half a sandwich. Take it home and it's dinner.
skepticscott
(13,029 posts)but the issue here is more what type of business model can be successful on a large scale. The "sell it as cheap as possible and pay your workers as little as possible" model, no matter how disliked it is on this site, has proven that it can be. Whether the Zingerman's model can in this day and age is another matter. Some good things can only be expanded so far before they break down.
cali
(114,904 posts)<snip>
Creating a pleasant, fulfilling and secure workplace
Producing, Packaging, marketing and distributing our products in an environmentally conscious way
Trusting one another and practicing respectful relationships with those involved in this work
Supporting with our voices and our buying power local, regional and sustainable agriculture, the forces of peace and understanding, the cultural, economic and environmental needs of peoples worldwide and the ecological needs of the wild flora and fauna
Being an educational resource to our community
Being a good neighbor
Laughing and being of goodwill. Being grateful, respectful and forgiving and Encouraging these experiences in others
Creating long-term financial security
http://americanflatbread.com/about-us/philosophy/
Laelth
(32,017 posts)-Laelth
ybbor
(1,555 posts)As an Ann Arborite, Zingerman's is the GM of Ann Arbor (Well,... maybe it's actually the University of Michigan, but you get the point). They have over 10 businesses in town, and employ many very well educated people and college/high school students in their businesses. They train all of their employees rigorously in the sense of customer service and product knowledge. They have contributed many other companies in the area that were started by alumni of their own companies, and are a true icon in the area.
I may be a little biased though, as I also met my wife of seven years today there in the winter of 2004. Zingerman's is a huge part of my life, and it is a vibrant part of many in the region.
If you ever get to Ann Arbor, be sure not to miss a chance to visit one of their businesses. They have an amazing deli with product from all over the world, as well as a strong emphasis on locally made product. While their prices may seem high, the quality of the items definitely is worth it. Check them out: http://www.zingermansdeli.com/
Kingofalldems
(38,489 posts)I would be a regular customer.
IdaBriggs
(10,559 posts)For us, they are a "special treat" but YUMMY bread and cheese and the olive oil and their meats are AWESOME.
The lines are always long in Ann Arbor, and the staff seem uniformly happy. If I had unlimited wealth, I would go on one of their "food tours" -- ten days in a country where they take you to all of the "out of the way / hole in the wall awesome restaurants" that the tourists never get to see.
Ah, the fantasy - lol!
Kick and Rec for this great business model!!!
Barack_America
(28,876 posts)...before I even opened the thread. In fact, I believe they are in the process of transferring ownership to their employees, rather than cashing in on a sale to an investment group.
Amazing chain of businesses, both in quality and philosophy. Went to their even more excellent Roadhouse on Ann Arbor's West Side last month. Had our water refilled by another one of the founding members, who's there doing that every night. God, I'd love to chat with him a bit.
Old Codger
(4,205 posts)The wide range impact of a higher minimum wage that is in fact a "living" wage spreads across all areas. More money in the economy, less stress on government services, and a much higher rate employment overall...NOT less.
progressoid
(49,999 posts)JI7
(89,276 posts)a lot of places are opening up.
a few even have bad service but the food is good enough that people still go there.
Dark n Stormy Knight
(9,771 posts)Amazing to when they actually appreciate them and fairly compensate them.