Why Are Restaurants’ Profit Margins So Low?

Re-Blogged From Prager University

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Applebee’s Franchise Owner Forced To Cut 1,000 Jobs After New York’s Minimum Wage Hike

By Andrew Kerr – Re-Blogged From Western Journalism

The CEO of Apple-Metro Inc., a company that operates about 40 Applebee’s restaurants in the New York metropolitan area, said he’s been forced to cut at at least 1,000 servers in the past year as a result of New York’s recent minimum wage hike.

“We have 1,000 less servers this time this year than we did this time last year,” Zane Tankel told Fox Business’ Stuart Varney on Monday.

That amounts a two-thirds reduction of his total workforce, Tankel said. Continue reading

Restaurants Try to Make Customers Eat Obamacare

B Joe Scudder – Re-Blogged From http://www.politicaloutcast.com

Chief Justice Roberts said that the Affordable Care Act’s fine for not purchasing Obamacare insurance was Constitutional because it was really a tax. That was legally outrageous but it was economically interesting. What is the difference between the government taxing you for the sake of “services” the government wants to provide and the government fining you for the same reason? The fact is Obamacare is a massive tax in lots of ways. Being required to pay more for services we don’t want (at least, not at that price) is no different than having our taxes raised.

And it has the same effect on businesses–it hurts and destroys them. Ellie Bufkin writes at The Federalist,

By now most people have heard that many popular restaurants in New York City have abolished tipping, and raised their menu prices by up to 40 percent, which now gives them the ability to pay everyone on staff more and provide full-time health coverage. Some restaurants tried a different tactic, including Brooklyn pizzeria Franny’s. They announced that checks would soon include a line item that reads “3% surcharge for Obamacare,” then quickly reversed that decision after complaints. Now they will raise all their prices, despite their concerns this means “putting $22 pizza on the menu.”

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