$20 an hour flipping Burgers

[JustRalph]

I was on a zoom call today with a hundred or so restaurant franchisee types with restaurants all over the country.

This was a legal discussion on the new NLRB rules that the Biden admin pushed through recently (including a big one today)

The call was led by a huge law firm out of Sacramento. They started the call shitting all over Biden and his cronies which I thought was hysterical considering they are out of California.

Some of the new rules won’t have a big impact on smaller companies like mine but we spent about 10 minutes on just California and the impact of the new rules and the $20 min wage for QSR (fast food) segment. There were about 20 California franchises in the meeting that were not QSR businesses and about 5 more that were.

The 5 of them were directly impacted by the $20 wage.

ALL FIVE WERE DISCUSSING WHEN THEY WERE GOING TO CLOSE. SOME IN 60 DAYS OR SO (END OF 2ND QUARTER) AND A FEW TRYING TO MAKE IT THROUGH THE SUMMER

The interesting part I found was that the non fast food types were losing employees to fast food restaurants because their employees wanted the higher wages. Lots of this going on. But, the fast places were hiring but only part time.

They were making their entire workforce take cuts to their hours and laying off the less effective employees after evaluating the new hires. It’s only been about 20 days since the law started so they were still trying to figure out who they were going to keep.

Some the employees who left non fast food jobs are starting to want their old jobs back….because they are only working part time in the new job. Interestingly enough, some are keeping the part time slots because they make the same money with less hours worked.

It’s a mess. But the presenter says they expect lots of closures in the fast food space in California over the next year.

Another weird thing that is happening, some of the big boys in the fast food space are buying up land just across the border in Nevada, up and down the state. The inference being Nevada is going to see huge growth in the coming years….just across the border.

California driving businesses out.

[Inner Dirt]

Nevada state minimum wage is the same as here , $12 an hour. I wonder if the $20 burger flipper pay will drive up housing costs in the low rent districts that have lots of fast food restaurants? Of course it won't if most jobs are part time. Is cutting full time positions to part time due to an effort to cut labor costs to a bare minimum? In other words risk having periods of being under staffed compared to over staffed?


Has anyone you talked to tried out any of the new automation? Like that chicken wing and fries making station you posted, I forgot the name.

[JustRalph]

Originally Posted by Inner Dirt

Nevada state minimum wage is the same as here , $12 an hour. I wonder if the $20 burger flipper pay will drive up housing costs in the low rent districts that have lots of fast food restaurants? Of course it won't if most jobs are part time. Is cutting full time positions to part time due to an effort to cut labor costs to a bare minimum? In other words risk having periods of being under staffed compared to over staffed?


Has anyone you talked to tried out any of the new automation? Like that chicken wing and fries making station you posted, I forgot the name.

The robots are being tested. Our company has a few stores using them as a test.

YouTube

[Inner Dirt]

Originally Posted by JustRalph

I was on a zoom call today with a hundred or so restaurant franchisee types with restaurants all over the country.

This was a legal discussion on the new NLRB rules that the Biden admin pushed through recently (including a big one today)

The call was led by a huge law firm out of Sacramento. They started the call shitting all over Biden and his cronies which I thought was hysterical considering they are out of California.

Some of the new rules won’t have a big impact on smaller companies like mine but we spent about 10 minutes on just California and the impact of the new rules and the $20 min wage for QSR (fast food) segment. There were about 20 California franchises in the meeting that were not QSR businesses and about 5 more that were.

The 5 of them were directly impacted by the $20 wage.

ALL FIVE WERE DISCUSSING WHEN THEY WERE GOING TO CLOSE. SOME IN 60 DAYS OR SO (END OF 2ND QUARTER) AND A FEW TRYING TO MAKE IT THROUGH THE SUMMER

The interesting part I found was that the non fast food types were losing employees to fast food restaurants because their employees wanted the higher wages. Lots of this going on. But, the fast places were hiring but only part time.

They were making their entire workforce take cuts to their hours and laying off the less effective employees after evaluating the new hires. It’s only been about 20 days since the law started so they were still trying to figure out who they were going to keep.

Some the employees who left non fast food jobs are starting to want their old jobs back….because they are only working part time in the new job. Interestingly enough, some are keeping the part time slots because they make the same money with less hours worked.

It’s a mess. But the presenter says they expect lots of closures in the fast food space in California over the next year.

Another weird thing that is happening, some of the big boys in the fast food space are buying up land just across the border in Nevada, up and down the state. The inference being Nevada is going to see huge growth in the coming years….just across the border.

California driving businesses out.

Is that in reference to giving salaried employees overtime pay? It was my understanding it only effected lower level salaried employees, is that correct? Any place I ever worked and I have now worked for myself longer than I worked for the man, lower level salaried employees got great benefits in exchange for working unpaid hours. That was the trade off.

[tucker6]

So my business is home health care. I accept Medicaid clients. CMS, which runs Medicare and Medicaid for the feds, came out on Monday with a new rule (opposed by everyone) that within six years, agencies like mine MUST pay at least 80% of our revenue to direct care employees. All other expenses covered under indirect expenses including office staff, owner salaries, and any other expense needs to be paid out of the 20%. CMS did so under the mistaken idea that giving all your profits to your employees will increase quality and quantity of home care. It certainly will not. In my experience, paying people more will not improve quality. As for quantity, this ruling will drive people away from the industry once you take away the profit motive. Any agency that was doing private pay and medicaid, will now drop medicaid. It's like CMS has no clue how business is run.

CMS will manage all this through the states, who don't want to manage this new requirement. In fact, there is no apparatus in place to oversee the checking of corporate profit and loss statements, so costs of implementation would be enormous. States are already lining up to sue the feds over this before the ink dried. Four different independent law firms have already stated that CMS has no such authority under the law to set profitability limits on private companies.

This ruling will cripple the care needy people will receive, and all in the name of helping them.

Let's Go Brandon!!!

[JustRalph]

Originally Posted by tucker6

So my business is home health care. I accept Medicaid clients. CMS, which runs Medicare and Medicaid for the feds, came out on Monday with a new rule (opposed by everyone) that within six years, agencies like mine MUST pay at least 80% of our revenue to direct care employees. All other expenses covered under indirect expenses including office staff, owner salaries, and any other expense needs to be paid out of the 20%. CMS did so under the mistaken idea that giving all your profits to your employees will increase quality and quantity of home care. It certainly will not. In my experience, paying people more will not improve quality. As for quantity, this ruling will drive people away from the industry once you take away the profit motive. Any agency that was doing private pay and medicaid, will now drop medicaid. It's like CMS has no clue how business is run.

CMS will manage all this through the states, who don't want to manage this new requirement. In fact, there is no apparatus in place to oversee the checking of corporate profit and loss statements, so costs of implementation would be enormous. States are already lining up to sue the feds over this before the ink dried. Four different independent law firms have already stated that CMS has no such authority under the law to set profitability limits on private companies.

This ruling will cripple the care needy people will receive, and all in the name of helping them.

Let's Go Brandon!!!

Amazing how stupid they are…….

[xtb]

Originally Posted by tucker6

This ruling will cripple the care needy people will receive, and all in the name of helping them.

Let's Go Brandon!!!

"Liberal policies generate the exact opposite of their stated intent."

[davew]

$20 not enough, how about $50?

https://www.msn.com/en-us/money/mark...&ei=11#image=1

[Inner Dirt]

Originally Posted by tucker6

So my business is home health care. I accept Medicaid clients. CMS, which runs Medicare and Medicaid for the feds, came out on Monday with a new rule (opposed by everyone) that within six years, agencies like mine MUST pay at least 80% of our revenue to direct care employees. All other expenses covered under indirect expenses including office staff, owner salaries, and any other expense needs to be paid out of the 20%. CMS did so under the mistaken idea that giving all your profits to your employees will increase quality and quantity of home care. It certainly will not. In my experience, paying people more will not improve quality. As for quantity, this ruling will drive people away from the industry once you take away the profit motive. Any agency that was doing private pay and medicaid, will now drop medicaid. It's like CMS has no clue how business is run.

CMS will manage all this through the states, who don't want to manage this new requirement. In fact, there is no apparatus in place to oversee the checking of corporate profit and loss statements, so costs of implementation would be enormous. States are already lining up to sue the feds over this before the ink dried. Four different independent law firms have already stated that CMS has no such authority under the law to set profitability limits on private companies.

This ruling will cripple the care needy people will receive, and all in the name of helping them.

Let's Go Brandon!!!

What is the current industry average or is it too big of a variable?

[tucker6]

Originally Posted by Inner Dirt

What is the current industry average or is it too big of a variable?

I pay my employees more than most in upstate SC, and I’m at 60%. This is essentially forcing us to pay $20/hr minimum wage since Medicaid pays $25/hr to me. Minimum wage in SC is $7.25 and I pay $15. This cuts the value of my company in half. Thanks asshole Joe Biden.


In 2019 our average wage was $10.50, so $15 is a steep increase in 5 years. I don’t need govt to force me to increase wages. The Market does just fine in educating me on what I need to do.

[JustRalph]

Originally Posted by tucker6

Market does just fine in educating me on what I need to do.

Amen! This is the natural order

These idiots think they know better than the people actually involved in the business