Ok, today’s the day when our minimum wage goes up from $7.50 to $8 per hour in my state (CA). How about yours?
I’m looking for alternative things to do rather than increase my prices (did that two months ago with the skyrocketing cheese prices). I really don’t want to do it again so soon.
Any of you having to deal with this issue? What kind of things are you doing to offset the increased wage?
Ours goes up to $7.15 on July 1 (this is for small employers in PA)
We (my husband and I) had an owners meeting about the 2008 budget today and this was a topic that we are focusing on, as this will increase our payroll by about 10%. We did not want to increase prices, but I think we are going to in order to offset this. We raised prices in April this year, so by July it will be 15 months since.
We also looked HARD at all other costs to see where we could save money and less waste - ie, desserts, bottled pop, measuring our cheese…
I prob’ly didn’t help you out, but we are in the same boat… misery loves company …
Price increase is always good (if you could get away with it). I take it(minimum wage increase) as a good opportunity to sell/justify an increase. Do not let the chance go by, jack it up,you will find it much easier than you think and will be happier.
raise your prices a minimum of two to three times a year. Not everything at once but a few items everytime. It took me a long time to stop agonizing every time I needed to do it and just to raise them. Also don’t wait till you “have” to raise them just do it. There are a lot of numbers we talk about as pizza shop owner ie: food cost, labor cost, comtribution margin, percent of profit etc but one I never hear people talk about “amount of actual profit” and it is the most important. I believe in doing nothing in place of raising prices only doing things along with it ie: upselling, inceasing sales, increasing productivity, cutting food cost (without cutting quality in my case ) etc. Just my two cents. Happy Hunting
Minimum wage does not affect me. Only my drivers make a wage that low and they are tipped employees. I pay them well above the tipped minimum. Phone girls are next lowest paid, they make $9. Pizza cooks make $10-$11. Shift leaders make $12. Assitant managers make $13-$16 depending on bonuses. I do not plan to give anyone a raise relating to changes in the minimum wage.