Quote:$15 Minimum Wage Hike Causes Shop to Sell $30 Pizzas, Sales Plummet

 

Raise the minimum wage, because unskilled workers deserve to be paid as much as anyone else, says the Left.

There’s just that one tiny problem that liberals never seem to understand – prices go up!

It’s not a ‘maybe’ that prices will jump, it’s definitive.

 

http://www.youngcons.com/15-minimum-wage...s-plummet/

 

 

http://libertyfirstnews.com/minimum-wage...m=facebook

 

Quote:CEO Who Raised Minimum Salary To $70k Falls On Hard Times

Just three months ago, Dan Price was a progressive hero. To much fanfare, Price, CEO of Seattle-based Gravity Payments, announced he was raising the minimum salary for employees of his company to $70,000, and taking a $930,000 pay cut himself to help pay for his new minimum wage. Three months later, the experiment does not go well.

 

 

http://dailycaller.com/2015/08/02/ceo-wh...ard-times/

 

So basically, exactly what those of us who argued against this minimum wage hike from the start said would happen is actually happening. Imagine that. I mean, who in their right mind would ever have foreseen that raising labor costs by 60-100% would have an effect on the end user price of products? Who could possibly have imagined that bumping the minimum wage like that would result in wage inflation? 

 

Quote:Minimum is an entry/training wage.  Nothing more.  Well, it's that and vote bait for low information voters.

Bingo. In so many ways. Unfortunately, the people earning near-minimum wage and making all this noise trend overwhelmingly towards the "D" side of the party line, and while they would no doubt vote for Democratic candidates anyway, throwing things like "increase the minimum wage to $15/hour" is a great way to ensure that they actually show up to vote. Who cares about the economic ramifications of paying high schoolers $30k per year, right?

 

Quote:Emeryville? Their pizza was probably $28 to begin with.

The article mentions $12 per pizza pre-hike, but doesn't specify whether that's an actual figure for the restaurant in question or just a hypothetical garnered from looking at Pizza Hut's website.

 

I do tend to agree with you, though, that there's probably no such thing as a $12 pie coming from a non-chain pizza joint in the Bay Area. I wish the article said exactly how much a pizza cost beforehand, but I'd say $18-22 is a safe estimate based upon what employees were making beforehand.

 

Quote:BTW, I've paid 30 bucks for a pizza before, AND had to leave a tip.  Just sayin'

 

If anything, I think the "No tip" part of Lanesplitter's plan may be the more radical part of it.

Yeah, I paid $30 for a pizza from an independent place one, too. Granted, I basically put Noah's ark on the pizza: two of every animal known to mankind. The usual beef, chicken and pork, but also bison, elk and venison. I'm surprised the thing actually cooked--and so was the wait staff.

 

The "no tipping" part of the plan will likely doom the restaurant from a staffing perspective once the big three chains (Pizza Hut, Papa John's, Domiblows) catch up on wages, because I just don't see a world in which those big three chains put even the slightest hint on their website, menu, advertising or phone scripts about not needing to tip. Nor do I see them eliminating the delivery charge, which can be as much as 20% of an order. If anything, I think they'd raise the delivery fee to help defray the additional labor costs. I mean, who in their right mind would buy a $30 pizza from any of those three places? I can get three large Pizza Hut pies delivered for $24 plus delivery fee and tip right now. That'd be an over 300% price hike. They'd have no choice but to raise the "hidden" costs, like the delivery fee, to compensate for the higher labor costs while still making it appear that their two-star pies are significantly cheaper than Anthony's Gourmet Pizza and its five-star reviews are. If I were a pizza delivery driver and could make $15 for a company that strongly discourages tipping or $15 for a company that just jumped my base by 100% and still encourages customers to "tip drivers for awesomeness", I'd go with the latter 100% of the time.

---