Real example of why $15hr min wage for L.A small businesses is crazy (Los Angeles: for sale, how much)

[jm1982]

There's a lot of theory going around in this 'debate' ...and talks of "Greedy corporations" that "Make billions"

Here is a real life example of the kind of small mom and pop business in L.A that most likely will be put out of business with a min wage hike.

Fast Food Hamburger Stand: Business For Sale in North Hollywood, Los Angeles County, California, United States on BizBuySell.com
http://www.bizbuysell.com/Business-O...M5Y1ElM2QlM2Q=


The business owner is only netting $45,000 a year...how much will they make when they have to pay their employees $15hr?

Do you think a business owner that has operated their business for 15 years!...and makes $45,000 a year is GREEDY?

If you look at the sales of this business they are $190,000 a year in sales. But the profit is only $45,000 a year. ...and before you say .. "Well the owner must SUCK at running a business!" ... 23.6% profit is in the range for businesses of this type.
Yes that "greedy" business owner is charging a big $6 for their burger...but they only make about $1.38 profit on it after all the expenses!

The owner ..who is probably working at least 40 hours a week is only making
$21.6 per hour....for being the OWNER!

If they are putting in more than 40 hours per week..of course that means they are making less than that per hour.

Now do you guys see why small business owners aren't happy about this min wage hike?..

The business is listed as having 3 employees...so if this business closes those 3 people will be out of work.

[ChristinePlovesME]

Yes....definitely..............! Put them out of business the way "Wallmart" did ///// A company funded by China....that makes a killing on the POOR of this country every year...A conspiracy.

Wallmart....the destruction of many small businesses in USA.....now the workers will make $15/hr....will cost of the crap they sell (all to keep China afloat) increase??

[socal88]

This $15 minimum wage hike is one of the most ill-conceived ideas. It only works for those who get to keep their jobs after others get axed because labor costs have increased.

For the restaurant/food service industry especially, it will be disastrous. At current wage rates, the margins are already pretty thin and with mom and pop places this like one that don't make much, they are already running pretty lean with their labor costs and sometimes resort to having other family members work there so they don't have to additional benefits, etc.

Folks who work at fast food places complain that they don't make enough. But the whole point is that working in a fast food joint making $10/hour is not supposed to be a long-term career option. The idea is that you're supposed to start at the bottom and then become the manager and then perhaps at some point work for corporate.

You're not supposed to be in your 30s working a fast food drive thru. That's for late teens/20s folks. The onus is on you to gain the necessary skills to work your way up the latter whether that's going through a management training program or going back to school to improve your skill set.

They always have some story about a single mother of 2 trying to support a family working fast food and then blame the place for not paying enough. I'm sorry, but if you're in that position, you've made some poor life choices.

[Mr_Geek]

Why was there a guy outside my local walmart asking for signatures to raise the minimum wage to $15 today? My guess is he is part of the reason why I don't think the minimum wage should be $15/hour. He is worth about $0.15/hour.


Oh and as soon as this gets implemented they will be asking for $25.

[ChristinePlovesME]

Originally Posted by Mr_Geek

Why was there a guy outside my local walmart asking for signatures to raise the minimum wage to $15 today? My guess is he is part of the reason why I don't think the minimum wage should be $15/hour. He is worth about $0.15/hour.


Oh and as soon as this gets implemented they will be asking for $25.

I bet he was...human garbage....

[BRinSM]

I don't have strong feelings on this issue either way, but I do think it's appropriate to look at this issue from a macro perspective. As soon as you start focusing on individual anecdotes such as this hamburger guy, you start to lose perspective of all the people who will benefit from the higher wage. I'm not going to venture to guess whether the new wage will have a net positive or negative effect on the state, but that sounds like a more constructive conversation to be having.

[theraven24]

Has anyone denied the "mom and pop" shops will probably run into issues?

[jm1982]

Yeah I think a lot of people have denied it. What I've been hearing from the Pro $15hr crowd is that this will have no effect on businesses.

[PDF]

Originally Posted by jm1982

Yeah I think a lot of people have denied it. What I've been hearing from the Pro $15hr crowd is that this will have no effect on businesses.

I don't think anyone disputed that. Small businesses will have a problem, sure, but not the larger corporations which are already paying their employees unlivable wages.

[jm1982]

Originally Posted by Mr_Geek

Why was there a guy outside my local walmart asking for signatures to raise the minimum wage to $15 today? My guess is he is part of the reason why I don't think the minimum wage should be $15/hour. He is worth about $0.15/hour.


Oh and as soon as this gets implemented they will be asking for $25.

Speaking of Walmart... They have been closing stores because of the minimum wage
Walmart Closes LA Store Over $15 Minimum Wage - Breitbart

Walmart Abruptly Shutters Oakland Store, Likely Over Minimum Wage: SFist

Real evidence that the law is a job killer. Of course people will say "Oh well...it's just Walmart"...but those stores employee a lot of people ...and not all of the positions are minimum wage.

All these people are saying , "What city needs those types of jobs"?
It's like ok where are these people going to work , are they going to get laid off from walmart and go straight to work at a law firm, an accountant, a programmer or some other type of highly paid career??