Seattle Restaurants Scramble To Pay A Higher Minimum Wage

Discussion in 'Politics, Religion, Social Issues' started by Populism, May 9, 2015.

  1. Populism macrumors regular

    Populism

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    #1
    Seattle Restaurants Scramble To Pay A Higher Minimum Wage

    NPR

    I tried to go through and highlight different parts of the article, but it's all good and a short read.
     
  2. aaronvan Suspended

    aaronvan

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    #2
    Seattle is a very tolerant city. They embrace legal marijuana, gay marriage, and women-beating thugs on their football team.
     
  3. P-Worm macrumors 68020

    P-Worm

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    #3
    Sad to hear this business owner isn't savy enough to figure this out. Not everyone is meant to own a business though. Maybe he can work as a waiter at the restaurant that will take his place?

    P-Worm
     
  4. vrDrew macrumors 65816

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    #4
    If I'm not obligated to leave a tip; I know that the people working in the restaurant are guaranteed a more-or-less living wage, and my total outlay goes up only a couple of dollars (assuming a 17% tip for fair service) - then whats the problem?

    And if it means less working people on welfare or food stamps; if it means less kids growing up in abject poverty, then I think society as a whole wins.

    People earning a living wage don't require as much Government support. Meaning less burden on the taxpayer. If the $15/hr wage means people eating $100+ salmon dinners won't get their experience subsidized by people who can rarely afford that sort of luxury - it seems like we should push for this sort of law everywhere.
     
  5. thekev macrumors 604

    thekev

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    Inflation always pressures low margin businesses. Given the cost of anything in that city at this point, some of them will close. I don't see how propping up their business models will help over the longer term. Given the current boom in Seattle, it's unlikely that any of these will remain vacant. It is likely that you'll see fewer restaurants due to this. I'm just not convinced it's a big issue.

    Well the business owner has some amount of risk involved. If things don't look like they'll end well, he may not want to tank his personal finances to keep it going. Waiters aren't typically the broke ones though if sales per waiter are high enough. It's often the lower kitchen ranks and people who wash dishes and do janitorial work. I haven't looked into whether tipped wages apply in this case.
     
  6. Populism thread starter macrumors regular

    Populism

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    #6
    Tell us about the business run by you.
     
  7. jkcerda macrumors 6502

    jkcerda

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    #7
    When everyone is raisng prices to make ends meet, do YIU still think they are getting a living wage?
     
  8. Peace macrumors Core

    Peace

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    #8
    To make ends meet. This article and the people they spoke to are full of crap.

    A pizza business has one of the highest profit margins in the hospitality industry.

    And Ivars ? Their fish business is based on seasonality of the mostly Alaskan fish industry that have prices go way up out of season.

    And an FYI. Seattle has more than just restaurant businesses.

    I know. I was a chef in the northwest for over 20 years.
     
  9. senseless macrumors 68000

    senseless

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    #9
    It's odd that the minimum wage increase was undertaken on a local level. It makes Seattle uncompetitive for manufacturing compared to their neighbors. That will have more of an impact than higher pizza prices.

    Everything associated with a higher hourly wage goes up too. Unemployment insurance, workers comp, Fica & Medicare. Plus it pushes up wages for everyone earning $10, $11 and $14 per hour too. Not just minimum wagers. And why should the guy earning $15 per hour now be paid the same as a dishwasher? He'll want more too.
     
  10. thekev macrumors 604

    thekev

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    #10
    Considering the cost of its real estate at this point, it seems weird that industries which naturally gravitate toward low cost labor would be an ideal fit. When an area experiences heavy inflation, those wages won't go far at all.
     
  11. jblagden macrumors 65816

    jblagden

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    Part of the problem is that most of these jobs are in retail or food service. The only new jobs that have created are only low-paying ones. A $15/hr wage sounds great, but it's not feasible.
     
  12. thekev macrumors 604

    thekev

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    #12
    I'm not sure what wasn't clear in my previous post. Low wage jobs should not exist in high cost areas. They place too much pressure real estate and transportation. You'll see fewer retail and food service jobs created there, but demand in the area should be high enough that the space will not go unused. Even in the previous comment, Seattle's neighbors were mentioned, yet I don't see anything bad about lower wage jobs migrating to a less expensive neighboring portion of King County.

    I was looking for a coupe good references on these things, specifically something comparable to the bureau of labor statistics at a more localized level and some quantification of real estate growth. I couldn't find any really good ones (zillow is decent, but not great).
     
  13. jblagden macrumors 65816

    jblagden

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    #13

    I mainly meant it as a general comment. Though, inflation also doesn't help. That's what happened in the 80's.
     
  14. aaronvan Suspended

    aaronvan

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    #14
    Where?

    Love Ivar's, BTW. Try to hit the one at Seatac whenever I fly.
     
  15. Eraserhead macrumors G4

    Eraserhead

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    #15
    If you leave 17% for decent service that means wages have risen by 60% and prices by 4%. Even if you exclude service wages have risen by 60% and costs by 21%.
     
  16. Sydde macrumors 68020

    Sydde

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    #16
    Have you been to Wally's in Des Moines (kind of near-ish the airport)? That has to be the best smelling place in all King county.
     
  17. aaronvan Suspended

    aaronvan

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    #17
    Haven't been there. There's a place on International Blvd called "13 Coins." Back before I moved here, when my then-girlfriend-now-wife would get me at the airport, we'd often stop there for dinner and a drink. It was a welcome cozy environment after an 11-hour flight.
     
  18. Populism thread starter macrumors regular

    Populism

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    #18
    Okay. If not NPR, which article/news source to which do you subscribe as authority on the effects of the Seattle minimum wage hike?

    Or is it just all in your head, and you'll let us know what the effects really are?
     
  19. mrkramer macrumors 603

    mrkramer

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    #19
    I think that is going to create a problem, if it was done at the state or preferably the federal level then everyone would have to be dealing with the same thing so it wouldn't be a big deal. A few mismanaged businesses would go away, but if the demand is actually there new ones will replace them. As it is it's going to be hard for restaurants, especially those near the city limits, to compete with ones outside the city that don't have to pay as high of wages.
     
  20. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #20
    I agree that it is tough to do it on just a local level. Seattle, the city, is only about 1/6 of the population of the metropolitan area.

    I appreciate that Seattle is trying to flatten the local income distribution a bit, but, I'm not sure it will work as desired in such a limited geographic area.
     

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