Palum
what Suineg set it to
I agree with most of this but the incentives part is simply wrong, no one working a 'job' (ie not career or professional position) gives a shit about money anymore. Society has changed. My company employs hundreds of commissions based staff. 15 years ago, money was THE motivator. People would toanythingto make the extra few dollars. Today, regardless of how 'money motivated' they make themselves sound in the interview the drive is not there. Gender, race, age, it just doesn't matter. People have become too comfortable. Odd, given the recent financial crisis. I have employees who will hit goal on the 17th of the month and instead of quadrupling their take home, they just slack for the rest of the month. I have employees who will make a killing and hit a $10K bonus check and quit because they don't need to work for a few months. I have employees who ask not to be paid a $1200 bonus check because it will cause them to lose $2K/mo in state housing benefits because their income will rise too much.I see what you are saying here but you are missing the some of the bigger pictures of the financials of running a restaurant. In Seattle the minimum wage is going from $9.32-$15.00, which is about a 60% increase. Since labor is about 1/3 of a restaruants expenses, a 20% increase in menu prices should cover the difference.
The problem is, every single menu price increase I have ever taken has resulted in a corresponding drop in transaction counts. I raise prices 5%, the number of orders I have coming in drops 5%. The price-sensitive consumers (who probably weren't tipping as much to begin with) will trade-down. While that may seem those things cancel each other out and the same amount of money is coming in overall, lower volumes leave a restaurant vulnerable to economic factors. Economy takes a downturn and you lose more customers through no fault of your own, for example, it can cripple a restaurant with low volume.
Also low volume will negatively affect your food cost. Generally speaking, the amount of food waste at the end of the night is the same no matter how many orders you do. Doesn't matter if I sell 250 pizzas or 500 pizzas on a given day, I will probably have about 10 pizza skins left over that end up thrown away at the end of the night. Even if I am selling my pizzas at an increased price the lower volume will result in my overall food costs being a higher percentage of my expenses, reducing margins (which as am sure you know, are already razor thin in the restaurant industry).
It isn't nearly as simple as shifting how the money is accounted for. Any price increase will have rippling effects over other aspects of a restaruants business.
Finally, there is the employee incentive. With the current tipping structure, that 20% currently coming in via tips isn't evenly distributed. The servers who do a better job (or have bigger boobs) tend to get a larger cut. You build that into the menu price and evenly distribute it the more motivated waiters aren't going to be nearly as enthusiastic and the big-boobed women will find other jobs where they can better capitalize on their looks. Empirically I can tell you the the quality of the minimum wage worker I get today now that we have the highest state minimum wage in the country is vastly inferior to those I used to get 15 years ago.
It's a different fucking world, no one associates money with the goods and services they want anymore. It's all just comfort of the moment bullshit. It isVERYhard to find driven people anymore. Most 'driven' people are only that way until they themselves become nice and comfy. Then prepare for NC/NS, flat tires, dead Grandmothers and FMLA. Sucks to be hiring right now.