Mickey Dees creating self-serve coffee kiosks.
Also, contra the article: actually, yes, this is TOTALLY about eliminating jobs in response to an imposed hike to the minimum wage. And coffee is a large part of the Scotsman’s business model. Or at least it was when I was a spatula serf; I can’t imagine that things have changed that much since then…
Who is surprised?
Last week American Apparel, the biggest clothing maker in Los Angeles, said it might outsource the making of some garments to another manufacturer in the U.S., and wiped out about 500 local jobs. The company still employs about 4,000 workers in Southern California.
As the article goes on to note, American Apparel was often used as an example of a company that paid above minimum wage without apparent ill-effects. Note the use of the word ‘apparent:’ the company has been leaking money for some time now, and, well, they’re getting some of their manufacturing base out of California, aren’t they? That’s often diagnostic.
Gotta love the intersection of things getting easier to make, but not universally cheaper, huh? – Actually, you should, if you like things like ‘increasing standards of living.’ But it’s a problem for places that don’t have it internalized yet that factories are ‘things,’ too.
Found here. Short version: dear God, but it’s like talking to a wall. When will these people realize that minimum wage hikes cause higher unemployment? …Yes, yes, I know: bordering states hope that the answer is “Hopefully, not any time soon.” Still.
Found here. Short version: it will surprise none of you to hear that the jobless rate is already up in Seattle, thanks to their ongoing mininum wage hike. One wonders who this news will surprise, honestly.
You can understand my confusion.
I keep forgetting that there’s a Portland on either side of the country. And that one, ah, has more of a charmingly unique viewpoint than the other. The other one is at least sensible enough not to drive its small businesses out of its jurisdiction, not that that’s a high bar to clear…
(Via Hot Air) I was struck by something when I read this: “Neither Obama nor Clinton has spoken critically of a $15-an-hour federal minimum. But recent comments from the candidate, and from officials in Obama’s administration, suggest Clinton and Obama may be worried that such a large increase could prove too much for some parts of the country to bear.” To wit, that this may be one situation where the Democratic establishment may not actually understand the motivations of its own liberal base. For that matter, possibly the liberal base doesn’t really actively understand said motivations either. Continue reading A federal minimum wage should be anathema to anybody who likes local city life.
Automation is coming. And it’s being driven by artificial economic pressures. But you knew that already.
The industry could be ready for another jolt as a ballot initiative to raise the minimum wage to $15 an hour nears in the District and campaigns to boost wages gain traction around the country. About 30 percent of the restaurant industry’s costs come from salaries, so burger-flipping robots — or at least super-fast ovens that expedite the process — become that much more cost competitive if the current federal minimum wage of $7.25 an hour is doubled.
“The problem with the minimum-wage offensive is that it throws the accounting of the restaurant industry totally upside down,” said Harold Miller, vice president of franchise development for Persona Pizzeria, who also consults for other chains. “My position is pay your people properly, keep them longer, treat them right, and robots are going to be helpful in doing that, because it will help the restaurateur survive.”
Continue reading Yet another article on minimum wage hikes fueling automation.
I am going to restrain myself, here. It’s time, perhaps, for a little gentle treatment.
…but, yes, it’s cruel hard to resist the temptation. But if you click through to the Twitter conversation itself you’ll see that Rand Simberg for one is carefully explaining to Asantha Cooray here that pretty much every employer affected by this decision is going to have a similar reaction, and that it’s a justified reaction. Very possibly, Mr. Cooray is processing that: Continue reading Tweet of the Day, Watch This Mugging By Reality In Real-time! edition.
The Wall Street Journal reports that, on Wednesday, as predicted, the panel convened by Governor Cuomo to study fast-food wages will formally recommend paying workers statewide $15 an hour — a substantial raise that’s nearly double the current rate of $8.75. The only step left is an okay from Acting Labor Commissioner Mario Musolino (which he’s expected to give), and then Cuomo can move forward (which there’s every indication he will) regardless of how the Legislature feels about it. So it looks likely that a big raise will come to New York’s fast-food workers.
Continue reading Widespread touchscreen ordering to come to NYC fast food restaurants by next year?
So stupidly obvious that the English major was telling you* this would happen ahead of time. That’s really stupidly obvious, for those following at home: we’re widely known for being not very good at math. At any rate, let us go now to AEI, which is shaking its darn head over what happened to Chipotle restaurants in San Francisco:
• San Francisco, however, saw across-the-board price increases averaging over 10%, including 10% increases on chicken, carnitas (pork), sofritas (tofu), and vegetarian entrees along with a 14% increase on steak and barbacoa.We believe the outsized San Francisco price hike was likely because of increased minimum wages (which rose by 14% from $10.74 per hour to $12.25 on May 1) as well as scheduled minimum wage increases in future years (to $13 next year, $14 in 2017, and $15 in 2018).
Continue reading How stupidly obvious WAS this end result of the San Francisco minimum wage hike?