Chiquita Khruschev AOC Returns to the Scene of the Minimum Wage Crime

TL;DR:

Ask her former boss, who owned The Coffee Shop diner in Union Square where AOC used to work. Late last year, The Coffee Shop closed its doors after 28 years, sidelining 150 employees. How successful was the place, where diners often came to celebrate special occasions? About the Coffee Shop, Forbes wrote last year:

"For nearly 30 years, serving those many occasions has added up to enormous success. According to Restaurant Business magazine's 2017 ranking of the 100 highest-grossing independent restaurants in the U.S., Coffee Shop served 314,000 meals and pulled in an estimated $14.3 million in sales, good enough to land in the 79th spot on the list. Coffee Shop stands out as one of few non-steakhouses (there are 24, mostly in New York and Las Vegas) or bottle-service meccas (the Tao Group has five on the list) to crack the top 100, and to do so consistently for nearly two decades."

But co-owner Charles Milite citied higher rent and the increased minimum wage as the reasons for the closure. New York's minimum wage law would have added $46,000 a month to his labor costs in 2019. Milite said: "I know it doesn't sound like much -- $2 an hour. But when you multiply it by 40 hours, by 130 people, it becomes a big number. It was going to increase our monthly payroll $46,000."

[–] PhunkyPlatypus 1 points (+1|-0)

Lols, so they cited rising rent as a primary reason that they can't afford to pay their employees more. The same employees, who themselves are dealing with rising rent and stagnating wages.

So instead if maybe cutting hours back or finding some solution to the issue, they close down and lay off 150 people.

[–] [Deleted] 1 points (+1|-0)

Rent and payroll.
Both, but I see your point. Commercial rents in NYC, especially in that area, have outpaced the market to such an extent that there are whole city blocks with just one or two stores left open. Many mom-and-pop stores have closed.

[–] PhunkyPlatypus 2 points (+2|-0)

Pay roll would increase 512,000 a year. Which is a staggering amount, unless you compare to 14,300,000 in sales.

I understand that restaurants have a very narrow profit margin. But if you can only make a profit by subjecting your employees to poverty wages, then the problem is on you. Those very same high value employees that create a profitable business can go to any other restaurant and make the same wage.

I think the main culprit here is that the cost of living has vastly outpaced the accompanying minimum wage. Combine that with the copious amount of inflation we've seen over the last 20 years, and it's no surprise that everyone is struggling.

Load more (1 comment)

Chiquita Khruschev AOC Returns to the Scene of the Minimum Wage Crime

12 comments

/s/USPolitics