How do I combat the raising of minimum wage??
I am an owner of a pizza biz in Illinois on the border of Kentucky. Minimum wage is $6.50/hr and right across state lines minimum wage is $5.50. Next year it will be raised to over $7.00\hr. If I raise pizza prices, they won't order. I am running high labor and my sales are down. I could run specials to raise sales then my food cost with skyrocket. What the heck do I do?
Asked By: me - 8/2/2006
Best Answer - Chosen by Asker
This is a significant part of the argument against the minimum wage increases. It doesn't, in the long run, help the people who it tries to help, and it hurts small business. Yes, the low wage worker needs help - but we must find a better way to do it... More
Answered By: me - 8/4/2006
Additional Answers (11)
find another line of service to offer.
Answered By: roman s - 8/2/2006
Everyone else is in the same situation so you will be OK. Also if one person makes 20 pizzas in an hour, than that is two cents per pizza. I doub it will kill you all that much
Answered By: billyandgaby - 8/2/2006
Thank God for illegal immigrants!!!
Answered By: jcalavera - 8/2/2006
Pimp out your best looking employees.
Answered By: bluecollarguytx - 8/2/2006
Stop cutting cost, find ways to increase your revenue instead. Think outside the box, find new, creative ideas to advertise and market your food. Downsizing is a bad idea.
Answered By: Bound2Success - 8/2/2006
Open another store on the other side of the border.
Answered By: harleychick - 8/2/2006
This is just the kind of situation that people ignore when it comes time to discuss the minimum wage. Not all employers are Fortune 500 companies with billions in profit. The vast majority of employers in the U.S. have fewer than 100 employees... More
Answered By: Oh Boy! - 8/2/2006
You'll probably have to raise your prices, but don't do it so significantly that peple won't want your product. Your only other option is have less employees.
Answered By: honey27 - 8/2/2006
The best workers in both states will migrate to the higher paying jobs. The worst workers will migrate to the lower paying jobs (your competitors) Their quality will fall, along with productivity... More
Answered By: HappyTom - 8/2/2006
Well, if you have 10 employees this will be a $200 /week difference. I'd bet for $1.50 an hour more those workers right across the state line will work for you. I'm betting you can get more productivity with less workers if you pay them enough, then minimum wage isn't an issue... More
Answered By: The Man - 8/2/2006
Read through the answers from the others and most are good and true. But most are forgetting you are a small pizza shop that uses high school kids as employees during busy times... More
Answered By: Nunoyvgvna Awi - 8/2/2006
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