Pizza Chain Ups Minimum Wage ‘For Old-Fashioned Capitalistic Reasons’
http://blogs.wsj.com/corporate-intelligence/2014/04/09/some-u-s-restaurateurs-voluntarily-lifting-employee-pay-to-avoid-minimum-wage-woes/
5:18 pm ET
Apr 9, 2014
While restaurant operators across the country are grappling with higher local minimum wage rates or bracing themselves for a possible boost in the federal minimum wage, some restaurateurs have voluntarily lifted employee wages.
Punch Neapolitan Pizza, an 8-unit chain in Minneapolis, in December raised the starting wage of its employees to $10 an hour from $7.50a move that received a shout-out from President Barack Obama during his State of the Union speech in January.
We did it for old-fashioned capitalistic reasons. We wanted to beat the competition, said co-owner John Puckett. We want to offer high quality service, and we needed to be north of the minimum wage to attract and keep the type of people we think our business needs. We have stacks of applications now from people wanting to work for us.
Restaurant owners from San Jose, Calif., to Chicago, Ill., have adjusted their business models to adapt to state and city wage hikes that surpass the federal starting wage of $7.25 per hour. Some operators have cut back on employees or reduced workers hours while others have found creative ways to cut costs, such as scheduling fewer garbage pick-ups.
FULL story at link.
dballance
(5,756 posts)"...others have found creative ways to cut costs..."
Yep, some took the easy route and cut hours or employees. Others managed without that.
gtar100
(4,192 posts)management styles. It makes little sense in grinding your employees through poverty by suppressing wages and cutting into the quality of your establishment. Such conservative cost-cutting should be considered a temporary measure if absolutely necessary but has unfortunately become the long term strategy of many business owners. It is in fact a sign of a failing business. Larger corporations that operate this way just take longer to die off and our short-sightedness (as in quarterly) fails to see the long-term, negative consequences of austerity. Tragic really but it's more proof that liberal/progressive policies are far more conducive to a vibrant, healthy, sustainable economy and embrace the capitalist idea of competition far more than conservative principles ever do.
In truth, conservatives suck at running businesses. What they are good at is hording things for themselves and exploiting human weaknesses for their own personal gain. They have just taken the current problematic economy we deal with as normal and do not have the vision to bring it out of the doldrums and make it work for everyone and eliminate poverty. But that takes an investment of time and money that requires a real risk they are too cowardly to face.
Cha
(297,838 posts)like "WOW!".. not. lol
It's a local Minneapolis Chain .. Punch Neapolitan Pizza .. Thanks for Giving them a Shout out in your SOTU, President Obama.
Thanks Steve
Sherman A1
(38,958 posts)What I really liked beyond the general spirit of raising the wages was the means that the business elected to accommodate the increased cost such as "while others have found creative ways to cut costs, such as scheduling fewer garbage pick-ups."
I find it simply amazing the number of missed savings opportunities I see in businesses such as adding solar, skylights and recycling programs to cut such costs as garbage pickups. There are ways to save money, we just need to be creative in finding them and most importantly the higher-ups need to listen and give them a try when suggested instead of the all too often "well, that can't work" attitude which we have all faced over the years.
packman
(16,296 posts)"while others have found creative ways to cut costs, such as scheduling fewer garbage pick-ups."
Well, I'd think twice before I ordered a pizza "With EVERYTHING on it".
For me, it's extra cheese. bacon, and onions
Jeff In Milwaukee
(13,992 posts)We referred to an "everything on it" order as a "garbage pizza."
Just sayin'..
riqster
(13,986 posts)You get what you pay for. Good on these smart businesspeople!
nxylas
(6,440 posts)One of those guys with that stupid Republican's Creed up on his wall. He was the worst micromanager I've ever known, probably to avoid precisely that problem.
tofuandbeer
(1,314 posts)Politicub
(12,165 posts)geretogo
(1,281 posts)geardaddy
(24,931 posts)Blows the other chains away.
IronLionZion
(45,579 posts)and Punch is good quality pizza.
Lydia Leftcoast
(48,217 posts)I'm lucky to have one of their restaurants very nearby.
Bigredhunk
(1,351 posts)#2) Sad when $10/hour job openings result in a flood in applications
We're being conditioned (or have been conditioned) to accept that $10/hour jobs are good jobs. Growing up in the 80's/90's, all the dads around here made well over double that working at factories like John Deere, Alcoa, etc
TRoN33
(769 posts)I once lived in Minnesota, I went to that pizza place few times. They got really damned good pizza!