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You Wanted an Increase in the Minimum Wage? Pay up and Shut Up!

Posted by on Aug. 8, 2014 at 7:46 AM
JRM
  • 140 Replies
1 mom liked this
Restaurant owner passes the buck to customers to cover minimum wage increase
Twitter.com/YossiGestetner
Twitter.com/YossiGestetner

A restaurant in Minnesota is attempting to offset the state's 75 cent minimum wage hike by tacking a 35 cent fee to each bill.

Oasis Cafe owner Craig Beemer says that instead of raising meal prices when the minimum wage went up Aug. 1, he decided to introduce the minimum wage fee, the Minneapolis Star Tribune reports. With six servers, Beemer said it will cost $10,000 more a year to pay them $8 an hour instead of $7.25, thus making the fee necessary.

Diner Jean Murra noticed the charge on the bottom of her receipt, and told CNN Money she "was shocked," and would have preferred the menu prices to go up a few cents, rather than have the fee on the receipt "to make a political statement."

Murra's not alone, and the restaurant has been inundated with angry customers who don't feel it's right to have to pay for the new wage. Manager Colin Orcutt told the Star Tribune he's "shocked" by the reaction, and stands behind his boss. "We're all appalled at the response for just protecting his employees," he said. "We're just doing what we have to do."

- - Catherine Garcia
....I am only responsible for what I say,NOT for what you understand.....
by on Aug. 8, 2014 at 7:46 AM
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Replies (1-10):
stacymomof2
by Ruby Member on Aug. 8, 2014 at 8:03 AM
22 moms liked this
Adding a "fee" is petulant and unprofessional. Bump everything on the menu up a quarter and call it a day. Jeez.
I live in Minnesota and work for a hospitality business. 80% of our employees make minimum wage as servers and bartenders. It is expensive that we have to give them all a raise. We are going to raise our prices ro offset it. Just like we raised the prices on our menu items that include beefsince beef just went up $2per lb. Cost of doing business.
JoshRachelsMAMA
by JRM on Aug. 8, 2014 at 8:06 AM


Quoting stacymomof2: Adding a "fee" is petulant and unprofessional. Bump everything on the menu up a quarter and call it a day. Jeez. I live in Minnesota and work for a hospitality business. 80% of our employees make minimum wage as servers and bartenders. It is expensive that we have to give them all a raise. We are going to raise our prices ro offset it. Just like we raised the prices on our menu items that include beefsince beef just went up $2per lb. Cost of doing business.

I agree. However, I'd've just increased all the  menu  items by the .75  Cost of doing business.

....I am only responsible for what I say,NOT for what you understand.....
angelaicky
by Bronze Member on Aug. 8, 2014 at 8:07 AM
I think hes cheap and so are the customer's. 10,000 more a year, yeah right.
stacymomof2
by Ruby Member on Aug. 8, 2014 at 8:20 AM
8 moms liked this
Well whatever price increase that makes sense. The cost of hiring line cooks has gone up recently in my state due to low unemployment rate and competition for getting good staff. We are now paying at least a $1.50 over what we paid for kitchen staff two years ago. It is part of doing business. Although I don't know if you have much experience in the restaurant business so raising every price by 75 cents might alienate some customers. There is a blance.
My point is that the customers don't need a breakdown of the costs when they go out to eat. The job of a restaurant is to make them happy to pay the bill and have them consider it a good value for what they receive. A "fee" at the bottom of the check is likessaying "it's not my fault I have to pay staff. Wah wah wah"
Really, how dumb. The cost of staff is already included in the bill, that's how restaurants work. I think customers know that.


Quoting JoshRachelsMAMA:

Quoting stacymomof2: Adding a "fee" is petulant and unprofessional. Bump everything on the menu up a quarter and call it a day. Jeez.
I live in Minnesota and work for a hospitality business. 80% of our employees make minimum wage as servers and bartenders. It is expensive that we have to give them all a raise. We are going to raise our prices ro offset it. Just like we raised the prices on our menu items that include beefsince beef just went up $2per lb. Cost of doing business.

I agree. However, I'd've just increased all the  menu  items by the .75  Cost of doing business.

angelaicky
by Bronze Member on Aug. 8, 2014 at 8:36 AM

What do you think about that 10,000 more talk? I saw pictures of the place on Yelp

Quoting stacymomof2: Well whatever price increase that makes sense. The cost of hiring line cooks has gone up recently in my state due to low unemployment rate and competition for getting good staff. We are now paying at least a $1.50 over what we paid for kitchen staff two years ago. It is part of doing business. Although I don't know if you have much experience in the restaurant business so raising every price by 75 cents might alienate some customers. There is a blance. My point is that the customers don't need a breakdown of the costs when they go out to eat. The job of a restaurant is to make them happy to pay the bill and have them consider it a good value for what they receive. A "fee" at the bottom of the check is likessaying "it's not my fault I have to pay staff. Wah wah wah" Really, how dumb. The cost of staff is already included in the bill, that's how restaurants work. I think customers know that.
stacymomof2
by Ruby Member on Aug. 8, 2014 at 8:51 AM
Well it is probably sonewhat accurate but high depending on how much staff he has on. The employer has to increase their pay by 75 cents per hour, plus there are employment taxes and unemployment insurance and workers comp are all based on per dollar paid as part of how they calculate the cost. Assuming he schedules around 100 hours a week of minimum wage servers he will be increasing the wages by $75 per week, call it $100 per week with taxes and insurance, times 52 weeks is 5200.

Quoting angelaicky:

What do you think about that 10,000 more talk? I saw pictures of the place on Yelp



. Its not big and its pretty ugly, he has 6 people serving. The IHOP has 6 people serving when its busy.

Quoting stacymomof2: Well whatever price increase that makes sense. The cost of hiring line cooks has gone up recently in my state due to low unemployment rate and competition for getting good staff. We are now paying at least a $1.50 over what we paid for kitchen staff two years ago. It is part of doing business. Although I don't know if you have much experience in the restaurant business so raising every price by 75 cents might alienate some customers. There is a blance.
My point is that the customers don't need a breakdown of the costs when they go out to eat. The job of a restaurant is to make them happy to pay the bill and have them consider it a good value for what they receive. A "fee" at the bottom of the check is likessaying "it's not my fault I have to pay staff. Wah wah wah"
Really, how dumb. The cost of staff is already included in the bill, that's how restaurants work. I think customers know that.
stacymomof2
by Ruby Member on Aug. 8, 2014 at 8:57 AM
Labor hours add up pretty quickly. If you have 6 servers on for 5 hours that's 30 hours right there. That only covers a dinner rush.
a place like this probably schedules around 15 to 20 labor hours for servers per day. Unless they do breakfast and dinner, then just staffng bare minimum for a 16 hour span will be at least 25 hours unless you never have more than one server. Maybe closer to 30. In which case he is pretty accurate with the 10000 guess.


Quoting angelaicky:

What do you think about that 10,000 more talk? I saw pictures of the place on Yelp



. Its not big and its pretty ugly, he has 6 people serving. The IHOP has 6 people serving when its busy.

Quoting stacymomof2: Well whatever price increase that makes sense. The cost of hiring line cooks has gone up recently in my state due to low unemployment rate and competition for getting good staff. We are now paying at least a $1.50 over what we paid for kitchen staff two years ago. It is part of doing business. Although I don't know if you have much experience in the restaurant business so raising every price by 75 cents might alienate some customers. There is a blance.
My point is that the customers don't need a breakdown of the costs when they go out to eat. The job of a restaurant is to make them happy to pay the bill and have them consider it a good value for what they receive. A "fee" at the bottom of the check is likessaying "it's not my fault I have to pay staff. Wah wah wah"
Really, how dumb. The cost of staff is already included in the bill, that's how restaurants work. I think customers know that.
angelaicky
by Bronze Member on Aug. 8, 2014 at 9:01 AM

I have taken a payroll class but I need help understand how .35 became .75 right off start? This all seems really high. There's no way this guy has 6 servers in that place all week.  Edit:  Ahh its .75 cent increase, let me look at this again. Ok that's different! :)  But I still think he can't have six people running around that place all at once.

Quoting stacymomof2: Well it is probably sonewhat accurate but high depending on how much staff he has on. The employer has to increase their pay by 75 cents per hour, plus there are employment taxes and unemployment insurance and workers comp are all based on per dollar paid as part of how they calculate the cost. Assuming he schedules around 100 hours a week of minimum wage servers he will be increasing the wages by $75 per week, call it $100 per week with taxes and insurance, times 52 weeks is 5200.
Quoting angelaicky:

What do you think about that 10,000 more talk? I saw pictures of the place on Yelp

. Its not big and its pretty ugly, he has 6 people serving. The IHOP has 6 people serving when its busy.

Quoting stacymomof2: Well whatever price increase that makes sense. The cost of hiring line cooks has gone up recently in my state due to low unemployment rate and competition for getting good staff. We are now paying at least a $1.50 over what we paid for kitchen staff two years ago. It is part of doing business. Although I don't know if you have much experience in the restaurant business so raising every price by 75 cents might alienate some customers. There is a blance. My point is that the customers don't need a breakdown of the costs when they go out to eat. The job of a restaurant is to make them happy to pay the bill and have them consider it a good value for what they receive. A "fee" at the bottom of the check is likessaying "it's not my fault I have to pay staff. Wah wah wah" Really, how dumb. The cost of staff is already included in the bill, that's how restaurants work. I think customers know that.


MonarchMom22
by Member on Aug. 8, 2014 at 9:02 AM
6 moms liked this

restaurants are in the business of hospitality.  this does not seem to be making the customers feel welcome or appreciated, so it doesn't sound like good business to me.  there are plenty of items on the menu that have hugs markups - like soda or tea - and the owner does see the need to identify exactly where he is making money.  So why the need to call attention to a new expense?  only to make a political statement.

Gamer_mom1
by Bronze Member on Aug. 8, 2014 at 9:09 AM
9 moms liked this
Man people throw fits when not allowed to pay slave wages lol

"Wasaaaaah we have share profits with the people we make money off of waaaaaaaah"
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