But, businesses don't close on their own accord? Be it how they managed or operated their business and how trends change.
Really?
One question.
Did you read the article?
Or did you just read the headline?
Another question. How many restaurants closed every month/year in Seattle prior to the wage increase.
That information wasn't in the article.
Then compare that to how many restaurants have closed since the wage increase?
Damn!
It’s evident that those Demoncrats don’t have a clue about economics. They never think of the consequences of their “feel good policies.” Neither do they have a clue how a business is run and operated. Seems to me this should be a litmus test for elected officials
Seattle eateries closing as 15 minimum wage approaches Hot Air
This article is less political and far more accurate. It may answer some of the questions you have mentioned. It explains how the restaurants closed for reasons that have nothing to do with wages. Some of them closed and reopened new ones. I think most of the posters are not interested in accuracy on this topic.
actually, it seems most are not interested in determining whether or not a forced increase in operating costs would have a negative affect on a business.....
I offered this scenario with no response. It is an accurate scenario, as most business owners make less than 75K a year....
A man owns a small restaurant...it was his lifelong dream. He wasn't overly ambitious...he just wanted to cook and serve for a living...so he has a small restaurant with 6 employees. He generates about 1000 a week profit. Not a lot, but he loves what he does, his wife is a nurse making another 70K a year, so they are doing just fine...making 120K a year with 3 kids.
Now he is told by his state government that he must pay an extra 5 an hour to each of his 6 employees.....or 30 an hour....an extra 1200 a week.
So now he is losing 200 a week with his lifelong dream restaurant.....so his family is now making 60K total....
His employees lose their job, he loses his restaurant...and another middle class family is in a struggle.
But, businesses don't close on their own accord? Be it how they managed or operated their business and how trends change.
Really?
One question.
Did you read the article?
Or did you just read the headline?
Another question. How many restaurants closed every month/year in Seattle prior to the wage increase.
That information wasn't in the article.
Then compare that to how many restaurants have closed since the wage increase?
Damn!
It’s evident that those Demoncrats don’t have a clue about economics. They never think of the consequences of their “feel good policies.” Neither do they have a clue how a business is run and operated. Seems to me this should be a litmus test for elected officials
Seattle eateries closing as 15 minimum wage approaches Hot Air
This article is less political and far more accurate. It may answer some of the questions you have mentioned. It explains how the restaurants closed for reasons that have nothing to do with wages. Some of them closed and reopened new ones. I think most of the posters are not interested in accuracy on this topic.
actually, it seems most are not interested in determining whether or not a forced increase in operating costs would have a negative affect on a business.....
I offered this scenario with no response. It is an accurate scenario, as most business owners make less than 75K a year....
A man owns a small restaurant...it was his lifelong dream. He wasn't overly ambitious...he just wanted to cook and serve for a living...so he has a small restaurant with 6 employees. He generates about 1000 a week profit. Not a lot, but he loves what he does, his wife is a nurse making another 70K a year, so they are doing just fine...making 120K a year with 3 kids.
Now he is told by his state government that he must pay an extra 5 an hour to each of his 6 employees.....or 30 an hour....an extra 1200 a week.
So now he is losing 200 a week with his lifelong dream restaurant.....so his family is now making 60K total....
His employees lose their job, he loses his restaurant...and another middle class family is in a struggle.
you are missing my point.
Most small business operate at a very low profit...I am not referring to the mega companies....your typical small business.
Lets use a stationary store....open 6 days a week.....has the owner and 2 employees....he pays the employees 10 an hour.....400 a week per employee....800 a week total....plus 10% cost of payroll......880 a week in pyroll.
That means just to make payroll, he needs to generate 46,000 in sales
His store costs him 10 a square foot for 800 square feet or 8,000 a year.
So to cover payroll and rent, he needs to sell 54,000 in goods.
Now lets say his mark up on the goods is 200%.......so his cost of 54,000 in sold goods is 18,000....
SO just to support his rent, cost of goods sold and payroll is 72,000.
So the first 72,000 in sales is for zero profit.....which means the first $1,400 a week in sales results in zero profit.
How much do you think a stationary store can generate in sales? If it is 2500 a week, then he makes a profit of 1100 a week profit.
Now...increase his cost of payroll by 5 an hour per employee....or 400 a week over the two employees.
He just went from making 57,200 a year to 36,500 a year.