Restaurant Owner to Imposes Surcharge For Obamacare, page 4

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ATS Members have flagged this thread 39 times

reply posted on 15-11-2012 @ 01:59 PM by macman

reply to post by Indigo5

What is the profit margin for the restaurants?

Including the other things he invest it is a non issue.

For an owner to take profits from one business they own, to cover another does not work and is not the reason for owning businesses.

But, I am sure you feel that is just evil, as businesses should be there to employe people, and not make a profit for someone.

reply posted on 15-11-2012 @ 02:00 PM by NOTurTypical

Originally posted by windword
reply to post by NOTurTypical

Menu prices are based on far more that food costs. That may your professional expertise, but it's not the bottom line.

Prices are never, in good business practices, arbitrarily raised. Fuel costs, cost of living rises, food costs, insurance, etc. are all costs that are factored into the rising menu prices. Some things, if they are too costly are just taken off the menu completely.

I've seen it and explained to my regular customers many, many times.

Let me break it down for you.

Food cost: 25-29%
Labor: 10-12%
Debt: 30-35%
Management: 10-12%
Advertising: 8-10%

Profit margin: 8-10%

To maintain that food cost percentage every chef in the country charges about 4x what he pays for product.

reply posted on 15-11-2012 @ 02:00 PM by windword

reply to post by macman

What are you saying, that servers should go get a "real job" and stop relying on tips, charity, that their lazy arses don't deserve in the first place?

Out of everyone that benefits from Obamacare, how did servers become the butt of people's hostility.

reply posted on 15-11-2012 @ 02:01 PM by NOTurTypical

Originally posted by macman
reply to post by Indigo5

What is the profit margin for the restaurants?

Including the other things he invest it is a non issue.

For an owner to take profits from one business they own, to cover another does not work and is not the reason for owning businesses.

But, I am sure you feel that is just evil, as businesses should be there to employe people, and not make a profit for someone.

8-10%

reply posted on 15-11-2012 @ 02:01 PM by VaterOrlaag

reply to post by MsAphrodite

This is a form of discrimination that isn't fair to certain employees.

What's wrong with you people?

Don't anti-discrimination laws mean anything to you? Since when do business owners have a right to force their political beliefs onto their employees? Did I miss the passage of some law out there? Are we living in a never-ending black hole?

reply posted on 15-11-2012 @ 02:04 PM by TheAngryFarm

Originally posted by The X

And corporations will show the true colours by doing this, they will not allow profits to take a hit from this if they can make you pay for it, price fixing on a national level like has never been seen before is about to happen.

What true colors? Corporations have one single obligation and that is to their shareholders. They arent in business to make less profit in order for the government to enrich themselves, or to make their employees lives better.

If they did allow profits to take a hit without doing anything and everything they could to prevent it from happening, they would be negligent in their fiduciary duty to the stockholders.

As was said before, people do not go into business, put their capital and finances at risk, just so they can contribute more to society or to make people feel good. People go into business for one reason and one reason only: to make money.

That reason is 100% correct, and government does nothing but make the cost to the end consumer go up.

reply posted on 15-11-2012 @ 02:05 PM by windword

Originally posted by NOTurTypical

Originally posted by windword
reply to post by NOTurTypical

Menu prices are based on far more that food costs. That may your professional expertise, but it's not the bottom line.

Prices are never, in good business practices, arbitrarily raised. Fuel costs, cost of living rises, food costs, insurance, etc. are all costs that are factored into the rising menu prices. Some things, if they are too costly are just taken off the menu completely.

I've seen it and explained to my regular customers many, many times.

Let me break it down for you.

Food cost: 25-29%
Labor: 10-12%
Debt: 30-35%
Management: 10-12%
Advertising: 8-10%

Profit margin: 8-10%

To maintain that food cost percentage every chef in the country charges about 4x what he pays for product.

You have omitted rent, insurance and taxes........

reply posted on 15-11-2012 @ 02:05 PM by NOTurTypical

Originally posted by Indigo5

Originally posted by NOTurTypical

Originally posted by RedShirt73
Lets see:

48 Hurricane Grill & Wings locations (5 Corporate owned)
40 Denny's and Dairy Queen locations

Me thinks he's getting a pretty penny back from all these franchises, wouldn't you think? But if he has to pay for his employees healthcare he won't be able to get that new hummer.
edit on 15-11-2012 by RedShirt73 because: (no reason given)

What do you think his profit margin is?? I guarantee you it's about 10%. Sure he owns many restaurants, that also means he carries an enormous amount of debt.

I googled up the moron and he owns a venture capital firm/only partner that has what he claims is a minimum of 75-100 Million to play with. Otherwise he has that money in the bank...so the bit about him potentially being in debt or having a small profit margin is BS.

By the way, he also buys struggling retirement homes....hate to be in one of those homes with this guy's less than charitable (ef you - pay -me) management style.

Dude take a business course. His other investment ventures have nothing to do with the bottom line at his restaurants. All restaurants carry an 8-10% profit margin, that's paltry compared to other investment area. Example, pharmaceuticals carry an 18% profit margin. Are they "gouging"?

reply posted on 15-11-2012 @ 02:06 PM by macman

reply to post by windword

Nope, never said that.

If servers are worried about income, then maybe serving isn't the job for them.
Kind of like hearing school teachers, who got into teaching 4 years before they got paid, complaining about low pay.
If you want higher pay, look for a higher paying job.
Stop looking for the the world to provide more for those working jobs that are at the lower end of pay and skill. That is just reality.

reply posted on 15-11-2012 @ 02:06 PM by TheAngryFarm

Originally posted by VaterOrlaag
reply to post by MsAphrodite

This is a form of discrimination that isn't fair to certain employees.

What's wrong with you people?

Don't anti-discrimination laws mean anything to you? Since when do business owners have a right to force their political beliefs onto their employees? Did I miss the passage of some law out there? Are we living in a never-ending black hole?

Are you drinking today?

The set of laws passed is known as Obamacare.

"Anti discrimination" laws do nothing but intrude upon the property rights is business owners.

reply posted on 15-11-2012 @ 02:07 PM by macman

reply to post by VaterOrlaag

Anti-discrimination????

That it is about as much of a fairytale as your avatar is.

reply posted on 15-11-2012 @ 02:07 PM by NOTurTypical

Originally posted by windword

Originally posted by NOTurTypical

Originally posted by windword
reply to post by NOTurTypical

Menu prices are based on far more that food costs. That may your professional expertise, but it's not the bottom line.

Prices are never, in good business practices, arbitrarily raised. Fuel costs, cost of living rises, food costs, insurance, etc. are all costs that are factored into the rising menu prices. Some things, if they are too costly are just taken off the menu completely.

I've seen it and explained to my regular customers many, many times.

Let me break it down for you.

Food cost: 25-29%
Labor: 10-12%
Debt: 30-35%
Management: 10-12%
Advertising: 8-10%

Profit margin: 8-10%

To maintain that food cost percentage every chef in the country charges about 4x what he pays for product.

You have omitted rent, insurance and taxes........

No, that's what "debt" is. An all inclusive % thats neither labor or food cost. Liquor is also in that column.

reply posted on 15-11-2012 @ 02:09 PM by defuntion

reply to post by VaterOrlaag

No disrespect, but read This Post very close.

This is capitolism, and the market will dictate cost of goods and services. If this is unfair/over-priced service, then the business will suffer.
The only thing wrong with what the employer did, is the fact that he announced the reason behind it. He really was making a political statement, but that has no bearing on the discussion of free market.

reply posted on 15-11-2012 @ 02:10 PM by macman

Originally posted by VaterOrlaag
Are we living in a never-ending black hole?

Yes, it is 0bama's America and the Fed Govt. It is coming for your money and rights, so it can provide said things to others.

reply posted on 15-11-2012 @ 02:10 PM by FreebirdGirl

Originally posted by VictorVonDoom
I don't see how this is any different from any other business. Look closely at your cell phone bill, your power bill, your cable bill, etc. See where they charge you, their customers, for the taxes that they have to pay? Like Leona Helmsley said, only the little people pay taxes. Whenever the government says they are going to "tax the rich" you can bet that the "rich" will simply pass those taxes down.

If he had just hiked his prices by 5% without an explaination this would not be a news story.

I disagree. The reason it is a news story is utility workers make a lot more than $2.13 an hour. Servers and bartenders make $2.13 an hour from their employers. Thr rest of their salary is based on tips. At most companies they must pay a percentage of their sales to others ( bussers,hosts and bartenders) out of their tip money. They are also taxed on sales not their actual tips. Big difference from knowing you are making $10-30 an hour guaranteed. So in essence the tipped employee will suffer. The op explained this.

edit on 15-11-2012 by FreebirdGirl because: (no reason given)

reply posted on 15-11-2012 @ 02:12 PM by windword

reply to post by macman

What a disingenuous argument! Why should servers, and servers alone, be singled out and being blamed by his corporation as being the villains leaching money from their customer's pockets.

reply posted on 15-11-2012 @ 02:13 PM by Indigo5

Originally posted by defuntion
reply to post by OptimusSubprime

Originally posted by OptimusSubprime
He is the owner of the restaurant and can charge whatever he wants. This is the way taxes work... the cost of all taxes and regulations imposed on business by the government is always passed on to the consumer, and yet this logic seems to escape the progressive policy makers in government.

In a free market, supply and demand determines price. Even more so in the restuarant business since menu price outstrips food cost by nearly 300%.

By yours and John Metz's logic should not the bill also itemize the employers burden of Social Security, Medicaire, Medicaid and Unemployment? Contributions that far outweigh his proposed "Obamacare" estimation?

Those costs...employee payroll and benefits are built into the cost on the menu, like every other cost..

how much you pay for food will determine how much you need to charge for it. Generally, food cost should be around 30-35%. This means that if you pay $1.00 for something, you need to charge minimum of $3.34. It may seem like you are charging a lot more than necessary, but keep in mind that you aren't just paying for the food itself. You are paying someone to prepare the food, serve the food, and clean up after the food. Everything in your restaurant, from payroll to the electric bill needs to be covered by the food you serve.

restaurants.about.com...

And while we are at it...No one has answered my question...if he is looking to protect his price by itemizing the paultry, and thus far fictional, estimate of 5% cost....then why hasn't he itemized the MUCH GREATER cost risk to his chain...the increase in beef prices by 100% in the past few years..."Where's the Beef!..Tax"???

The only answer I can find to any of these questions is that he is looking to make an il-advised political statement that is not founded in finance, math or logic and is at the same time a very stupid business decision regardless of political affiliation. Rule number one in business...do not sh*& where you eat...leave the politics at home.

edit on 15-11-2012 by Indigo5 because: (no reason given)

reply posted on 15-11-2012 @ 02:14 PM by macman

reply to post by FreebirdGirl

And yet those people are free to leave the "server" job and work in any other career field.

But, because they are deemed as this poor little person, they must be treated differently.

The person chooses where to work and what work to do. If they don't like it, go do something else.

That is progressing in life, is it not? Thought Liberals were all about being "progressive"?
Oh yeah, it only works if it is for the things they deem important.

edit on 15-11-2012 by macman because: (no reason given)

reply posted on 15-11-2012 @ 02:15 PM by Hefficide

Growing pains - these spasms will quickly dissipate once people get used to the change. Before the past 20 or 30 years there were plenty of challenges to running a profit margin in any business and they were dealt with rationally. If things got more expensive, a business would raise their prices just enough to cover the increase in costs. Once in a blue moon they might have to lay off an employee.

Then came the age of greed, where simply being the "owner" suddenly morally entitled a person to take the lions share of the profits for their own pockets.

THAT is the first thing that needs to change. When I was a young man the people I interacted with had 20 or 30 year plans to get rich. Today? Talk to a young entrepreneur and they'll all tell you about how they plan to retire in 3-5 years, with a vast fortune. It's ridiculous.

This particular case, however, strikes me more along the lines of a temper tantrum - right up there with the folks who threatened to downsize if Obama was elected. Personally speaking, I love wings - but I would NOT buy them from this person because I do not, at all, appreciate their apparent attempt to punish other Americans for their voting choices.

Whatever happened to sense of community anyway?

~Heff

reply posted on 15-11-2012 @ 02:17 PM by macman

reply to post by windword

They aren't. This is just the start from what everything that is being shown.
This will start to happen in all other parts of business and industry.

And I realize that this is a sore subject, as you stated you were a server for a numbers of years. But, just because it directly affects you personally, doesn't mean it is the only thing happening.

As businesses reel from the re-election of 0bama, they are and have been looking at ways to re-coup operating costs. This will be just one of hundreds of creative ways that those costs will be adjusted.