Spiteful business adds a "living wage" surcharge as a political protest

[BoberFett]

The only way In-N-Out burger could 'transform' McDonald's would be to close most of the stores. The two business models simply aren't compatible given that In-N-Out restaurants HAVE to be within 1 days distance from a distribution center. McDonalds has a largely decentralized supply chain so mixing the two would be disastrous\impossible. Not to mention the market density\penetration differences, including McDonald's operating in areas that are not as selective\profitable as In-N-Out

Regardless of whether you think McDonalds is a good company or could pay a living wage saying In-N-Out burger should buy McDonalds and could transform it into all In-N-Out burgers-like locations is the stupidest thing I have read on P&N in a while and shows a complete ignorance of even the basics of business or the operating model of the two companies.

:thumbsup:

 

[Cozarkian]

Okay, so in the most extreme case the money is actually going to the employees.

My math was the most conservative case possible, not the most extreme. It basically assumes that customers visit the parking garages at a perfect distribution throughout the day, allowing the company to operate with a skeleton staff. In reality, customers will arrive in waves during the times with more flights. Realistically, my numbers are probably at most half of what the actual costs will be, so the surcharge is probably covering about 50 - 60% of the actual increase in costs.

But what you didn't consider in your calculations is that the staff are not getting a $6/hr pay increase, they're getting an extra few cents a year.

Source, please. I couldn't find any data on what Masterpark actually pays or how many employees it has working at a time, so I assumed they were making the $9.00 minimum wage, which is a six dollar increase. With a little more digging, it turns out my original source used deceptive rounding. Minimum wage was actually $9.32 in Washington. As the valets probably get tips, I think it is a safe bet Masterpark was playing close to minimum wage.

Another problem with my numbers, I just discovered the 5th garage is self-park, not valet, so that saves a couple of hundred dollars. Of course, they also have at least 6 shuttles operating during peak times (based on photos), and at least 1 shuttle 24 hours a day. If the drivers are making less than $15.00/hour, that's going to add to their costs, too.

Not now, but starting next year. So that surcharge is 100% profit for the business.

Okay, now that is actually pretty sneaky. I didn't realize the minimum wage phases in. Unless they gave their employees raises in advance of the requirements, they should have added a .99 surcharge followed by a .99 discount for delayed implementation.

 

[Greenman]

I do

I do as well, though I've never paid less than double the minimum wage.

 

[Tech_Greek]

I do as well, though I've never paid less than double the minimum wage.

That's what I end up paying out, actually more than that depending on their multiplier but the base wage is lower (higher than minimum wage though). It actually encourages employees to work and build their status up at the company as well as take everything seriously and be in it for the long haul.

Overhead has become more and more expensive though, and it's only going to go further.

Impatient Client: "What do you mean you can't send a technician out here right now and it'll be about an hour? You don't have any sitting around there? You should hire more obviously"

Me: "Uhhh, that eight hour invoice that I (automatically without you even asking) generously reduced down to four and didn't charge your overtime/weekend, that you took 90 days to pay and then complained about the pricing...yeah that's the reason we don't have technicians sitting around waiting on anyone."

 

[werepossum]

The only way In-N-Out burger could 'transform' McDonald's would be to close most of the stores. The two business models simply aren't compatible given that In-N-Out restaurants HAVE to be within 1 days distance from a distribution center. McDonalds has a largely decentralized supply chain so mixing the two would be disastrous\impossible. Not to mention the market density\penetration differences, including McDonald's operating in areas that are not as selective\profitable as In-N-Out

Regardless of whether you think McDonalds is a good company or could pay a living wage saying In-N-Out burger should buy McDonalds and could transform it into all In-N-Out burgers-like locations is the stupidest thing I have read on P&N in a while and shows a complete ignorance of even the basics of business or the operating model of the two companies.

Well said.

I wonder how many here own a small business and have to make a payroll every week?

I'm guessing not many. I'm a part owner, but of an engineering company so minimum wage is not something that affects us. (Although months where there's not enough cash I don't get a check, so I suppose I could sue myself over it. lol) But I see this attitude plenty, that business owners are rolling in cash and therefore any additional costs inflicted by government simply take a righteous bite out of "excess" profits.

 

[Tech_Greek]

Well said.


I'm guessing not many. I'm a part owner, but of an engineering company so minimum wage is not something that affects us. (Although months where there's not enough cash I don't get a check, so I suppose I could sue myself over it. lol) But I see this attitude plenty, that business owners are rolling in cash and therefore any additional costs inflicted by government simply take a righteous bite out of "excess" profits.

I see it all the time too. People just assume that we, as the owners, roll around on Yachts throwing money at people like it's going out of style. I blame this on the media.

I've had a plenty of times where I've put money BACK into the company because of market fluctuation.

On the other side...Corporate Executives at Big Corporations? That's a different story, blame (yourself, in general) for shopping there and supporting their big habits.

 

[BoberFett]

I see it all the time too. People just assume that we, as the owners, roll around on Yachts throwing money at people like it's going out of style. I blame this on the media.

I've had a plenty of times where I've put money BACK into the company because of market fluctuation.

On the other side...Corporate Executives at Big Corporations? That's a different story, blame (yourself, in general) for shopping there and supporting their big habits.

Cheers to you as a small business owner, the real backbone of the US economy. :thumbsup:

 

[Tech_Greek]

Cheers to you as a small business owner, the real backbone of the US economy. :thumbsup:

Thank you. It's good to know there are others out there that appreciate what we do when facing overwhelming odds against big bully corporations.

 

[shira]

Source, please. I couldn't find any data on what Masterpark actually pays or how many employees it has working at a time, so I assumed they were making the $9.00 minimum wage, which is a six dollar increase. With a little more digging, it turns out my original source used deceptive rounding. Minimum wage was actually $9.32 in Washington. As the valets probably get tips, I think it is a safe bet Masterpark was playing close to minimum wage.

A fine point: The company must also pay SS and Medicare based on the increased wages, which is .0765*5.68 = 43 cents/hour. So the total increase to the company would by $5.68 + $0.43 = $6.11 per hour per employee for each employee making minimum wage at the time the full increase takes effect.

I believe the video said the company has 155 employees affected by this law. But we don't know the average wage-increase per employee.

 

[BoberFett]

Thank you. It's good to know there are others out there that appreciate what we do when facing overwhelming odds against big bully corporations.

I consider myself a libertarian and despite what the disinformation says about us, I'm no fan of big corporations. Massive multinationals are the unholy alliance of capitalism and government that has given us the economic nightmare we have today.

Unfortunately one side says we need no regulation, and the other side wants to apply the same harsh regulation across the board, even when it harms small business to the benefit of large corporations. They're both failures in my opinion.

 

[Zebo]

Employees should sue them to make sure they are getting full surcharge. If not customers can class action them for false charges. Either way walk the talk. i suspect a bit profiteering is going on with their airport parking contract business. Which is funny in and of itself since they are on govt teet.

 

[Tech_Greek]

Employees should sue them to make sure they are getting full surcharge. If not customers can class action them for false charges. Either way walk the talk. i suspect a bit profiteering is going on with their airport parking contract business. Which is funny in and of itself since they are on govt teet.

Have you ever paid a Pizza delivery charge? How about a fee to pay your utility bill?

Unfortunately there's no way that would ever hold up in court. The judge will simply state that customers were free to take their business elsewhere if they didn't like the fee.

 

[DCal430]

And yet, businesses like In & Out Burger and Trader Joes can pay above average wages,.. and still make profits.

This passing it onto the customer none sense is just sensationalism and misdirecting. Herp-a-derps love to play the victim all the time - nothing new here, just another example supporting how fucking stupid some of these good old boys can be.

Yet Trader Joes uses suppliers with extremely questionable employment ethics, with workers dying in the fields that supply trader joe's with its goods. Trader Joe is far from an ethical company.

 

[WHAMPOM]

Can we have the IRS look through their books to make sure the "surcharge" is going to the employees and not into Corporate pockets?

 

[Engineer]

Can we have the IRS look through their books to make sure the "surcharge" is going to the employees and not into Corporate pockets?

Why, is there a law against it?

 

[Cozarkian]

Why, is there a law against it?

To answer your rhetorical question, no, there isn't. Other examples where surcharges and fees do not 100% go toward the added cost:

Delivery charge for take-out/pizza.
Corkage fee, split-plate fee, substitution fee at restaurants.
Labor charge by contractors.
Cost of material charge by contractors.
ATM withdrawal fee.
Wire transfer/money order charges.
Late fees.
Overdraft fees.

Unlike the above, this surcharge actually probably does go entirely to the employees.

 

[Pulsar]

To answer your rhetorical question, no, there isn't. Other examples where surcharges and fees do not 100% go toward the added cost:

Delivery charge for take-out/pizza.
Corkage fee, split-plate fee, substitution fee at restaurants.
Labor charge by contractors.
Cost of material charge by contractors.
ATM withdrawal fee.
Wire transfer/money order charges.
Late fees.
Overdraft fees.

Unlike the above, this surcharge actually probably does go entirely to the employees.

You missed the most obvious ones from the phone and cell phone companies. They always have 'recovery fee / surcharges' that are not actually related to the government, even though they imply they are.

I love how the business owner is spiteful because he identified the reason he raised prices. Shame on you! Shame!