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Originally Posted by RockCrusher
And in CA the $20-an-hour minimum wage will begin to exert its influence.
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Robert Irvine shares your concern
Celebrity chef Robert Irvine predicts California 'opened the gateways' to minimum wage 'problem' in America
One of the world’s toughest and most resilient chefs – who’s helped hundreds of restaurants on the brink of survival write their comeback stories – claims nothing could have prevented the consequences of California’s $20 minimum wage, but there is one solution.
"This is Robert Irvine predicting we're going to lose about 20-plus percent of our small, mom-and-pop business because what California has actually done is going to enable other states to do the same thing," the celebrity chef and host of "Restaurant: Impossible" told Fox News Digital.
"And the increase of wage plus the food cost is putting small, mom-and-pop operators out of business because they cannot afford $20 an hour, $27 an hour in some places," he added. "Fast food chains, think of the McDonald's and the Yum! Brands and all those kind of folks, are turning to technology to offset that human being."
https://www.foxbusiness.com/media/ce...roblem-america
I spent 40 years plus as a manufacturers representative with most of my customers being considered small business shops. These folks are generally in the business due to passion and not to get rich. Due to my business experience I was often consulted to try to help struggling business's and if memory serves was around cost of labor was around 28% of gross sales. The issue is not just the wages but the ancillary costs of workmans comp, local and state income tax, Social security tax, 401(k) contributions. Bottom line is these small business's are be placed in a untenable position of dealing with:
1) Higher labor cost and associated cost
2) Higher consumables cost due to inflation
3) Lower sales due to effect of inflation on consumers
4) Demographic shifts that effect their local market.
Not a pretty picture, Robert Irvine sees the future.
PS. My first non family/farm job was working in a bicycle shop for $.25 a hour. I was 13 and there were no child labor laws at the time.
