“Boston’s iconic restaurant Durgin-Park in Faneuil Hall was forced to shutter its doors in January after nearly two centuries in business. The owners said they couldn’t keep up with the wages and health care premium hikes.”
more ill effects of this leftist lunacy here:
i’ve always been against the minimum wage, let alone artificial “hikes” of it as promoted by looney leftists who hate success in business, like premier dingbat AOC.
I call this political because of how much it is politicized by the socialist economic idiot left politicians who support it.
All fun and games as long as your customers will pay the increased prices that need to be charged to cover the extra costs of the decetn wage. Many people won’t so they stop going to the place and then guess what happens. Same results. Damned if you do damned if you don’t.
There are more than a dozen different factors that go into running a profitable restaurant. Most of them within the control of the company, a few of them not.
Using labor rate as an excuse for closing is simply a poor excuse.
Starbucks sells cups of coffee for $5+ each for a product any consumer could make at home for less than a dollar. Someone mentioned what happens when people stop going to a restaurant because they had to increase their prices because of minimum wage hikes.
How about that restaurant start doing a better job controling their food costs which at poorly run restaurants go above 40% or more of revenue.
How about they prepare a product that people actually will pay the menu price for.
So many other controllable aspects but the easy one to complain about is labor.
Sadly, alcohol and low wages keep many of these places afloat. The restaurant business simply doesn’t have a high profit margin. Everything from fast food franchises to restaurants, to diners, location is what usually makes or breaks them. Since most aren’t in prime locations they are most likely treading water. I’m of the opinion there are too many of them out there right now.