Goose wrote:Employers who pay minimum wage dont respect their staff, they are paying them the bare minimum they can legally get away with
While those staff struggle to pay bills, the employers most likely have a very comfortable lifestyle, especially with a chain/franchise like Cafe Nero
Goose, that is an ill-informed assumption perpetuated by the political class in order to provoke class-based animosity. (that's a whole different debate...)
As a member of a family that owns a small business I can assure you we are no better off than anybody else. And with the recent law being passed forcing us to now provide health insurance for all of our employees I am positive one of two things will happen. We're going to have to increase revenues by 20% next year while not increasing any other expense... which is impossible since we would then have a higher purchasing expense to stock the shelves, so we're going to have to grow the business by about 33% or more. Or we're going to be closing our doors
We own a small gas station and convenience store and have for about 20 years. Last year I our total revenues were right around $1m. Between my family and the daily manager we sold a 49% stake to about 3 years ago we only took $50,000 out of the business last year. $45,000 for her salary and $5,000 to fix our drive-way. The rest went to cover business expenses. Mortgage on the property, electricity, purchasing, wages etc... and now we're facing an additional $50,000+ in expenses to provide health insurance for all of our employees. Our employees are about 80% high school kids who when you factor in their wages (even if minimum) and heath insurance coverage it would be cheaper to fire them all and just run the store in the family. We currently employ 15 people...
There have been plenty of years where the business lost money...
Thank God everybody in my family has other jobs for income, because that's not making us anything at all.
And I have two friends that own franchises for a well known fast food chain here in the States and I know first hand they face many of the same problems, even with a well known brand that benefits from national advertising.