Paying Their Employees A Living Wage The Key To Success For One New York Restaurant

Discussion in 'Too Hot for Swamp Gas' started by gator996, Sep 9, 2013.

  1. gator996
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    gator996 New Member

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    Capitalism doesn't mean paying slave wages for firms to exist...

    http://www.addictinginfo.org/2013/06/12/paying-their-employees-a-living-wage-the-key-to-success-for-one-new-york-restaurant/

    Paying Their Employees A Living Wage The Key To Success For One New York Restaurant
    Author: Nathaniel Downes June 12, 2013 2:55 am


    For decades, the wages for those who served our food has remained stagnant. Originally set in 1991 to $2.13, the minimum wage for tipped employees is at historical lows, and workers have had enough. But one restaurant in New York has tackled the problem head on and to much attention.

    Sushi Yasuda, a notable upscale restaurant on East 43rd Street, has chosen a different path. As you can see on their card receipts (top), their wait staff do not get tips but, instead, are paid wages above and beyond the minimum, bucking the trend so prevalent elsewhere in the industry. But how does it work for them?

    In an interview with The Price Hike, owner Scott Rosenberg had this to say:


    We felt that approach really didn’t make sense. We felt it was cumbersome and confusing.

    We just take tipping out of the equation

    In addition, with the tip removed, customers now feel free to enjoy more; Mr. Rosenberg mentioned that one customer commented that he will be ordering 20% more food now.

    By having a reasonable salary, with performance-based bonuses, Sushi Yasuda has gained a loyal employee base with low turnover. This is part of why the restaurant has consistently high ratings with the New York Times:


    It “sets the standard in New York for the pure expression of sushi culture.”

    High praise indeed from the world-famous newspaper in the world’s most competitive restaurant market!


    Adjusting for productivity, the minimum wage in 1960 would be $22 per hour today. This shows how far the wage for the average food server has fallen. In 2000, tips brought home an estimated $12 billion, which, divided over the estimated 2.3 million tipped food servers, means your average wait staff brings home $5,200 per year in tips. Combined with that $2.13 per hour, and your full-time wait staff will bring home under $10,000 per year on a full-time salary, far below the poverty level even for a single person supporting only themselves.
  2. MichiGator2002
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    MichiGator2002 VIP Member

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    It works for one restaurant? By all means, let's legally mandate it for everyone.
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  3. Gatorrick22
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    Gatorrick22 Well-Known Member

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    I live for cookie-cutter, one size fits all, laws and regulations. It's the epitome of socialistic.
  4. gatordowneast
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    gatordowneast Well-Known Member

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    Good for them if it works. For most restaurants and wait staff, my guess is they would take it in the shorts.

    "Fine dining" wait staff would take a huge cut in pay going to a salary only system as in higher end restaurants in major cities, many make $200-$500/ night in tips. I'm sure "slacker" waiters and waitresses would love it. The pros would view it as horrible.
  5. gator996
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    gator996 New Member

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    No, I'm sure your more in favor of the status quo which isn't working for millions of food industry workers.


    "This bucking of the trend is not only good for management, who see a solid return, but also for their employees. Nationwide, the rates of poverty for our nation’s food service workers are triple the rate for other industries. By offering fair compensation to their workers, Sushi Yasuda has given them stability in an unstable market, one in which they do not fear “the slow shift” or “someone stealing my tips.” This, in turn, encourages the kind of management/staff partnership essential for a business to succeed."
  6. Gatorrick22
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    Gatorrick22 Well-Known Member

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    Are you an expert on macro economics?
  7. Tasselhoff
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    Tasselhoff Well-Known Member

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    My friend owns several high end restaurants in Florida. His staff makes bank off of tips. In order to work there waiters have to go through a 6 month training period....it is hard work and they have people waiting/begging to get in. Why? Because the tips are so good.

    But hey, 996 please tell me what a living wage is? Dollar amount. Not some ethereal pie in the sky hooie. Tell me a solid number so that we know with out a doubt what the base line living age should be.
  8. Gatorrick22
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    Gatorrick22 Well-Known Member

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    What ever it (living wage) is it should be up to the restaurant, and not the local, state nor federal government nanny-state.
  9. GT Gator
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    GT Gator Well-Known Member

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    Back in college, I used to be a server. I was paid $2.35 an hour. Yet, I raked in the cash (mostly tax free). In fact, I made MUCH more money waiting tables than I did as a 2nd Lieutenant in the USAF (my first post-college job).

    I also busted my butt to provide good customer service for fear of losing out on a tip.

    On the other hand, I used to live in the UK where servers are paid a living wage and tipping more than a tiny amount is not customary. The result? Crappy service at most restaurants. Refilled water cups? You could wait forever to get a refill. The servers sucked -- really bad. Every time my wife and I went out to eat and got horrible service, which was often, we used to look forward to the day we would return to the States and start receiving good restaurant service again.

    We loved the UK. We also, despite the it's poor reputation, looked the food in the restaurants. But, we absolutely abhorred the servers there.

    As both a former server and a frequent diner, I much prefer the American tradition of tipping.
  10. gatordowneast
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    gatordowneast Well-Known Member

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    Did he happen to mention what "fair compensation is". Didn't see that in the article.
  11. gatordowneast
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    gatordowneast Well-Known Member

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    996, wonder how many job applications he will receive from those working at similar priced restaurants whose waitstaff now receive tips?
  12. gator996
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    gator996 New Member

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    Sounds like the owner doesn't care about applications received because his employees are happy and aren't looking to leave.
  13. philnotfil
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    philnotfil Well-Known Member

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    No, it should be up to the employee what their living wage is. It is up to the restaurant what wage they will offer.
  14. g8orbill
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    g8orbill Gators VIP Member

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    996-paying a higher wage will work for high income high check average fine dining establishment in a high income area will probably work just fine- tell me outside of those areas how well a restaurant like say Texas Roadhouse, or Olive Garden will do if they had to pay those wages-now I do not pretend to know your income but I can tell you that mine is pretty significant and I do not eat in those fancy expensive fine dining establishments because I fail to see the price value combination

    in the Orlando area-there are only a few restaurants who could pay those wages and survive
  15. Gatorrick22
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    Gatorrick22 Well-Known Member

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    Wrong, the employer holds (owns) the job. He/she owner can always get someone else to work for them.

    The employee can wish for as much as they want, and they want the government or union thugs to interfere with free enterprise. They want "Detroit" to happen everywhere in America.
  16. gatordowneast
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    gatordowneast Well-Known Member

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    If you want to spend your time and research this for us 996, you will likely find he employs family members.
  17. Swampmaster
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    Swampmaster New Member

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    the owner is using this model to increase profits, not as a socialism tool--which is how it should work.
  18. philnotfil
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    philnotfil Well-Known Member

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    I'm not sure how what you wrote is in disagreement with what I wrote.

    The restaurant (the employer) gets to decide what wage they are going to offer. The employee gets to decide what wage they are willing to accept (what their living wage is).
  19. Gatorrick22
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    Gatorrick22 Well-Known Member

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    Not with what you wrote as much as the message about wages in general.

    The workers are tying to get the government to dictate the "living wage" to the owners of restaurants. That has nothing to do with free market enterprise and everything to do with nanny-state/unions' intervention.

    Unskilled labor is not a career that commands higher living wages.
  20. philnotfil
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    philnotfil Well-Known Member

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    Then why did you use the word wrong in replying to what I wrote? Or did you mean to quote a different post?

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