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Long before the pandemic persuaded so many restaurant employees to abandon the business, Corrinna Stum chafed at the illogic of the pay.
She started as a server at age 15, and quickly discovered how stressful it could be to earn only the federal minimum wage for tipped employees (now $2.13 an hour) and hope that tips would make her whole.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,061 posts, read 80,100,596 times
Reputation: 56840
We enjoy eating out at restaurants, and have noticed too many reducing hours or even closing up due to lack of help, so we have been tipping as much as 40 or even 50% when the service has been good, and using debit cards, with a pen to sign we will write "Thank You" on their copy. We have also noticed that every restaurant has increased prices, but we understand and don't mind because we know they are struggling to stay afloat.
Here's why I dont have that much sympathy for the restaurant business.
For years, way before the pandemic, these restaurant owners defended the low wages on the argument that the low pay was justified because "it's not meant to be a career job that pays the bills. It's geared towards kids and side money".
OK fast forward to today. Working in a restaurant means being at the most exposed position to getting covid. And that's not even taking into account potentially hostile/abusive customers in today's environment. So since this is just a "kid job", those same kids are now deciding to look elsewhere. Our teenager also worked fast food just before the pandemic. As soon as this hit, we immediately told her to quit. Not worth it.
So the low pay that the restaurant business has enjoyed for years, heck decades, has now come back to bite them in the butt big time. Even cancelling the enhanced unemployment checks has not brought back the workers. Parents like myself are not going to allow our teenagers to risk exposure for a dead end low paying job like that.
And that's the issue for the fast food industry. I get that the profit margins are thin so simply raising the wages to attract workers may not be feasible. I dont know where they go from here.
Chain restaurants seem to have more problems around here with help than locally owned places. Went out to dinner last night, place was jammed. Hard to get a reservation. I over tipped waiter by rounding up to nearest five dollars. He seemed happy!
Your teenager is at least 10 times more likely to be killed driving to the restaurant than to suffer from COVID.
That's a flimsy excuse.
Yes, servers make a low guaranteed wage - which NO server is unaware of when they take the job. Buyer beware.
Meantime - ask around - your favorite nicer restaurant. Would any server keep working there for $15/hr? $20?
Doubtful.
Because on busy weekends they make more - much more - than minimum wage.
I'm talking about fast food restaurants. They dont make tips. My kid doesnt need the money, and the money isnt worth the dangers of covid plus hostile/aggressive customers either. With the widespread shortage of staff around the country, it would appear that there are a lot of other parents who share my viewpoint.
But hey if you have a teenager you are more than welcome to send him/her off to your nearest McDonalds.
Here's why I dont have that much sympathy for the restaurant business.
For years, way before the pandemic, these restaurant owners defended the low wages on the argument that the low pay was justified because "it's not meant to be a career job that pays the bills. It's geared towards kids and side money".
OK fast forward to today. Working in a restaurant means being at the most exposed position to getting covid. And that's not even taking into account potentially hostile/abusive customers in today's environment. So since this is just a "kid job", those same kids are now deciding to look elsewhere. Our teenager also worked fast food just before the pandemic. As soon as this hit, we immediately told her to quit. Not worth it.
So the low pay that the restaurant business has enjoyed for years, heck decades, has now come back to bite them in the butt big time. Even cancelling the enhanced unemployment checks has not brought back the workers. Parents like myself are not going to allow our teenagers to risk exposure for a dead end low paying job like that.
And that's the issue for the fast food industry. I get that the profit margins are thin so simply raising the wages to attract workers may not be feasible. I dont know where they go from here.
I disagree with you because the restaurant*business will all disappear in America and only franchises will exist in this was the case.
The reason why they depend on cheap labor because the cost of goods and services have just gone up and there's no way for them to pass the rising cost to customers. If they could then say hello to that $40 Burrito.
That's how much it would cost to pay a waitress a living wage.
You simply can't sell a dish to customers for $15-18 and expect to pay workers over $15/hr. The owners would have to get paid nothing to do so. In many aspects restaurants close down because the owners cannot pay the workers enough to float the costs of healthcare or insurance.
People needs to understand the macro and micro economics of running a restaurant and know that it is very razor thin profit margins .
Last edited by vision33r; 09-23-2021 at 12:02 PM..
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,061 posts, read 80,100,596 times
Reputation: 56840
Quote:
Originally Posted by vision33r
I disagree with you because the restaurant*business will all disappear in America and only franchises will exist in this was the case.
The reason why they depend on cheap labor because the cost of goods and services have just gone up and there's no way for them to pass the rising cost to customers. If they could then say hello to that $40 Burrito.
That's how much it would cost to pay a waitress a living wage.
You simply can't sell a dish to customers for $15-18 and expect to pay workers over $15/hr. The owners would have to get paid nothing to do so. In many aspects restaurants close down because the owners cannot pay the workers enough to float the costs of healthcare or insurance.
This is why the "fine dining" restaurants are doing better than casual. When you are paying $29 for an entree plus $12 for a salad, and $9 for a beer, the tab goes up to about $100 for two, and with a typical 20% tip the server gets $20 for each table. What may happen is fast food and many casual restaurants closing due to lack of food and only the upper middle-class and above will be able to afford to eat out. Already here we have seen a nearby Jack in the Box, and Hops & Drops close up. For those still open, we have seen supply issues resulting in shortages of napkins, cups, straws, some foods and especially draft beers. I have gotten to where I ask what beers they have rather than go by the menu.
I disagree with you because the restaurant*business will all disappear in America and only franchises will exist in this was the case.
The reason why they depend on cheap labor because the cost of goods and services have just gone up and there's no way for them to pass the rising cost to customers. If they could then say hello to that $40 Burrito.
That's how much it would cost to pay a waitress a living wage.
You simply can't sell a dish to customers for $15-18 and expect to pay workers over $15/hr. The owners would have to get paid nothing to do so. In many aspects restaurants close down because the owners cannot pay the workers enough to float the costs of healthcare or insurance.
People needs to understand the macro and micro economics of running a restaurant and know that it is very razor thin profit margins .
I dont disagree on the fact that the margins are too thin to support wage increases. That is why I said I dont know where the fast food industry goes from here. People are not going to risk their lives for dead end minimum wage jobs so now labor shortages will become a fact of life going forward. Now as others have pointed out, the higher end restaurants will probably do ok since the staff tend to get larger tips and so wont be as easily poached.
I disagree with you because the restaurant*business will all disappear in America and only franchises will exist in this was the case.
The reason why they depend on cheap labor because the cost of goods and services have just gone up and there's no way for them to pass the rising cost to customers. If they could then say hello to that $40 Burrito.
That's how much it would cost to pay a waitress a living wage.
You simply can't sell a dish to customers for $15-18 and expect to pay workers over $15/hr. The owners would have to get paid nothing to do so. In many aspects restaurants close down because the owners cannot pay the workers enough to float the costs of healthcare or insurance.
People needs to understand the macro and micro economics of running a restaurant and know that it is very razor thin profit margins .
So would you be okay with eliminating tipping and raising prices so they are able to pay a living wage and healthcare (your words?)
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