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Applebee’s Franchise Owner Forced To Cut 1,000 Jobs After New York’s Minimum Wage Hike

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The CEO of Apple-Metro Inc., a company that operates about 40 Applebee’s restaurants in the New York metropolitan area, said he’s been forced to cut at at least 1,000 servers in the past year as a result of New York’s recent minimum wage hike.

“We have 1,000 less servers this time this year than we did this time last year,” Zane Tankel told Fox Business’ Stuart Varney on Monday.

That amounts a two-thirds reduction of his total workforce, Tankel said.

Tankel said the minimum wage increase has forced him to adopt a “concierge” type model of having servers help customers operate self-serve tablets and make them feel “warm and comfortable.”

“I’ve always said increasing minimum wage is technology’s best friend,” Tankel said.

“The model now that we’re heading towards where we had one server for three or four tables, we’re moving towards one server for ten tables, eliminating about two thirds of our labor ultimately,” Tankel said.

He pins the blame on New York Governor Andrew Cuomo, New York City Mayor Bill de Blasio and “the liberal agenda.”

New York state began implementing a series of minimum wage increases in 2016 that will eventually mandate some employers in New York City to pay their employees at least $15 by 2018 for some employers in New York City. The wage hike will take place more gradually in other parts of the state.

On Dec. 31, 2015, the minimum wage for tipped restaurant employees in the state rose from $5 an hour to $7.50 an hour, a 50 percent increase. The minimum wage for fast food workers rose as much as 20 percent, from $8.75 to $10.50.

On Dec. 31, 2016, the minimum wage for fast food employees in the city rose again to $12 an hour.

Tankel’s challenges in the wake of New York’s minimum wage hike is not unique to his Applebee’s franchises.

The state lost 1,000 restaurants in 2016 alone, according to a report by the New York Post.

Employment growth at fast food restaurants in New York City fell to 3.4 percent, less than half of the seven percent growth seen from 2010 to 2015. So far in 2017, employment growth has shriveled to just two percent through May.

Full-service restaurants like Applebee’s have been hit even harder in the city . Employment growth at full-service establishments plummeted to 1.3 percent in 2016, compared to 6.5 percent from 2010 to 2015. This year, it’s fallen even further, to 1.2 percent growth through May, the Post said.

“This is a drop-off in restaurant growth that didn’t even show up during the great recession,” said Michael Saltsman of the Employment Policies Institute. “It’s compelling evidence that something big is going on.”

Some economists say the drop-off in restaurant growth in New York is due to the state’s minimum wage hike.

“We are beginning to see the harmful effects of drastic minimum wage increases that previous studies have predicted,” said Mike Whatley, head of the National Restaurant Association’s State and Local Government Affairs.

“It’s a miserable business at the moment,” Andrew Schnipper, the owner of five burger restaurants in Manhattan, told the New York Post. “Most restaurateurs are far less profitable than they were a year ago.”

Other experts say the restaurant industry’s growth in the first half of the decade was unsustainable, and that the slowdown has little to do with the minimum wage increase and more to do with high rents and oversaturation in the Big Apple.

“It’s unusual for growth like that to be sustained forever,” said James Parrott, a former analyst at the Fiscal Policy Institute. “Restaurant employment (in New York) overall is still increasing and average wages grew about six percent in 2016.”

Tankel said the minimum wage increases in the state are “all really good if you have a job.”

But the wage hike didn’t do much good for the 1,000 employees he’s been forced to let go in the past year.

“Stuart, if you don’t have a job, $100 an hour doesn’t help you out a whole lot, does it?” Tankel said.


http://www.westernjournalism.com/applebees-franchise-owner-forced-cut-1000-jobs-new-yorks-minimum-wage-hike/?utm_source=Email&utm_medium=braverapoliticaloutcast&utm_campaign=can&utm_content=2017-07-15

by on Jul. 17, 2017 at 10:02 AM
Replies (51-60):
meriana
by Platinum Member on Jul. 17, 2017 at 8:41 PM
1 mom liked this


Quoting SkippyDo:

Have you never heard of capitalism?  You know the social system of this country?  

SMH

Quoting meriana:


Quoting SkippyDo:

Funny how people stupidly think that corporations are just going to take a hit and make less profit.   

sidesplittinglaughter



No, what's stupid is people being perfectly fine with corporations paying CEO's, and executives millions of dollars a year plus bonuses while paying their employees (those people who make their business a success), minimum wage and then complaining about working people needing public assistance just to pay their rent and put food on the table. The rationale is always that minumum wage jobs are meant for teen-agers even though these days many of those jobs are filled by those well past the teen years due to the past and continuing export of jobs.


There's a difference between capitalism and just plain greed. Somehow over the years greed became a good thing and those that make millions while their employees find themselves in need of assistance became not only fine but something to celebrate

anxiousschk
by anxiouss on Jul. 17, 2017 at 10:19 PM

I'm not going to lie -- I love a chain.  Olive Garden, Red Robin, BJ's Brewhouse, Plaza Azteca, Firebirds -- those are the chains we typically eat at (in that general range and above).  We also love Panera.  

But we do love local, independent places too.  Applebee's just doesn't rank anywhere on that list other than "Places we are least likely to go." 

Quoting coolmommy2x: We eat out a lot but almost always at local places. We avoid the chains at almost all costs.
Quoting anxiousschk:

Do you all not have many independent places out there? 

We do here -- and the chains like Applebees, Ruby Tuesday's, Chili's -- they are seriously struggling.  They keep changing their menus to try and stay relevant, except the constant change is irritating because that means that favorite menu item you have? It's gone the next time you go in.  

I haven't been in an Applebee's in years and there is one maybe 2 miles from my home.  We just don't like it.  I highly suspect that part of the cutting of jobs had to do with a loss of income, and not the wage hike.  

Quoting LGAll65215: Applebees is NOT crap food here! We love it!
Quoting Sparkles4Lui: Applebee's is crap food anyway. Might be a good thing to put these processed food establishments out of business.



DSamuels
by Platinum Member on Jul. 17, 2017 at 10:35 PM
So do you think there should be a cap on how much someone can earn? How much?

Quoting LGAll65215: The owners and CEO's of businesses who are complaining about the minimum wage are greedy and don't want to share---they want to continue to take in the big bucks and let their workers suffer.
DSamuels
by Platinum Member on Jul. 17, 2017 at 10:43 PM
We have several places who have the automated things on the table. Here they are used to pay your bill. The servers still take your order, bring your food and drinks and check on you.

One of our Applebee's is very good, the other not so good. Where we live there are lots of chain restaurants and very few independent restaurants.


Quoting SeanandNoahsmom: They are just looking for a scapegoat to explain their poor performance- and the minimum wage hike was convenient. They were already getting ready to institute the automated, order from your table pads years before the increase was introduced, and I have no sympathy at all.

Quoting STVUstudent:

of course not.  We are supposed to feel sorry for the now-redundant work force, and be outraged that the poor corporate leaders had to make such painful cuts... but they were going away no matter what, it was just a matter of time.

Quoting coolmommy2x: But that doesn't fit the narrative nor is it the takeaway we're supposed to get from this article.

Quoting STVUstudent:

They had been gearing up to cut those positions for a long time.  They rolled out touch pads a few years ago... this is not this year's technology to them.  they are using the wage increase as an excuse, but this was a planned force reduction... not the unfortunate result of legislature...

Quoting AmaliaD: That's bs. He could just make smaller profit. Applebee's sucks anyways. And if they cut that many servers. They won't have anymore customers. Because they don't have good food to begin with.

This will be used as an example of how Not to respond to change.

SkippyDo
by Silver Member on Jul. 17, 2017 at 11:04 PM

People agree to accept the offered wages prior to working.  There is no forced labor.

And because of Capitalism, these employees at any time, can start their own businesses. 

Quoting meriana:


Quoting SkippyDo:

Have you never heard of capitalism?  You know the social system of this country?  

SMH

Quoting meriana:


Quoting SkippyDo:

Funny how people stupidly think that corporations are just going to take a hit and make less profit.   

sidesplittinglaughter



No, what's stupid is people being perfectly fine with corporations paying CEO's, and executives millions of dollars a year plus bonuses while paying their employees (those people who make their business a success), minimum wage and then complaining about working people needing public assistance just to pay their rent and put food on the table. The rationale is always that minumum wage jobs are meant for teen-agers even though these days many of those jobs are filled by those well past the teen years due to the past and continuing export of jobs.


There's a difference between capitalism and just plain greed. Somehow over the years greed became a good thing and those that make millions while their employees find themselves in need of assistance became not only fine but something to celebrate


SkippyDo
by Silver Member on Jul. 17, 2017 at 11:08 PM

I'd rather deal with a machine.  

They're far more intelligent, dependable,  useful than some of the minimum wage employees I've run across.  

Quoting viv212: Exactly. And this reiterates the fact that the owners would rather buy a machine than pay an employee. I happen to appreciate good old customer service and don't even touch those machines.
Quoting STVUstudent:

Applebees rolled out self service touch pads at the table long before the minimum wage increase was mandated.  Corporate may blame their force reduction on the wage increase, but they were prepping for it long before it was a reality.  they have used the increase to throw the blame on, but this was cost and overhead savings all the way and in the works for a long time...  other fast casual and fast food places are falling right in line.  Panera, McDonalds, Red Robin, and a bunch of other places I have been to recently...


SeanandNoahsmom
by Dawn on Jul. 18, 2017 at 12:05 AM
At a few places here, you place your own order from your table. But most are like what you described; though that is changing.

Quoting LGAll65215: They still have waitresses, waiters working even though they installed the pads . Basically the pads are used to pay or play games! The ordering and serving still done by people/employees.
Quoting SeanandNoahsmom: They are just looking for a scapegoat to explain their poor performance- and the minimum wage hike was convenient. They were already getting ready to institute the automated, order from your table pads years before the increase was introduced, and I have no sympathy at all.
Quoting STVUstudent:

of course not.  We are supposed to feel sorry for the now-redundant work force, and be outraged that the poor corporate leaders had to make such painful cuts... but they were going away no matter what, it was just a matter of time.

Quoting coolmommy2x: But that doesn't fit the narrative nor is it the takeaway we're supposed to get from this article.



Quoting STVUstudent:

They had been gearing up to cut those positions for a long time.  They rolled out touch pads a few years ago... this is not this year's technology to them.  they are using the wage increase as an excuse, but this was a planned force reduction... not the unfortunate result of legislature...

Quoting AmaliaD: That's bs. He could just make smaller profit. Applebee's sucks anyways. And if they cut that many servers. They won't have anymore customers. Because they don't have good food to begin with.



This will be used as an example of how Not to respond to change.

illogicalkat
by Bronze Member on Jul. 18, 2017 at 12:09 AM
1 mom liked this
Clearly, Applebee's restaurants don't do enough business to support the staff they have.
If you cannot afford to pay your employees a living wage, your business model is flawed.
nb34
by Platinum Member on Jul. 18, 2017 at 12:09 AM

I am sure the CEO's couldn't bare to take a little bit less home. It was a matter of life and death for them.

stacymomof2
by Ruby Member on Jul. 18, 2017 at 7:38 AM
Applebee's and other chains have been going down for years. All those promos, 2 meals for $20 and whatever else. People are not interested in fast food at a sit down restaurant. They look for something interesting or unique. The trend of chains is over and blaming wage hikes is bs. Their market share has been declining for 10 years at least. I most notice it in the downtown area where almost every chain they opens closes within 3 years. The only one that has remained open is capital grille, and that's because it's is a white tablecloth chain and they cater to business lunches. But there are a ton of local places that are successful.
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