Minimum Wage Increase.

[BostonPie]

How are you handling the new Minimum Wage increases? Are you increasing wages of all your employees and to make up for the labor are you increasing pricing? THANKS for any insight

 

[bodegahwy]

I don’t even know if there is one in our state. We have not paid minimum ever in our history because you can’t get employees for that here. No action taken.

 

[durbancic]

For the 1st time in many years Ohio does not have a min wage increase due to cost of living increases. In the past we have done it on a case by case basis, moving up some and leaving some others the same.

 

[d9phoenix]

Here in CO it only went something like $0.10, so this year no increases (ours is tied to inflation and above the fed).

In the past it was a balance between mandatory raises and my costs. Some years they balanced, some not. You need to take the time to work out your new costs and determine if you can handle the new costs or need to raise your prices.

Once i got my pricing to where it should be, my year to year increases have only been around $0.10 to $0.25 on the average.

This year will unfortunately be $0.25 (but this was because the city was kind enough to raise the property value by 8% for no reason other then they could. The property owner is fighting it but yeah, i do not expect him to win).

 

[bodegahwy]

We are in Colorado too but in a resort market the practical minimum wage is $10.00

 

[Georgiascp]

We just went up to 10/hr I raised prices a couple of months ago. Im going to see how it goes for a bit and if I really need to I will raise prices again

 

[pizzapiratespp]

We raised our prices last summer to offset the increase that took place Jan 1. Just about everyone around here raised their prices over the last couple of weeks. My plan is to not put in another increase until 2017. We will most likely be at $11 by then if not more.

It’s easy math if you need to figure out how much to raise your prices. Take the percent wage increase you are looking at. California is $9 to $10 or about 11%. Take the 11% and multiply by your labor %. Ours is 33% ( 11 times .33 = 3.5%)

We raised our prices 3.5%, our margins remained constant and 99% of the customers didn’t notice. The 1% we heard about still ordered.

 

[famousperry]

ours in CT went from $9.15 to $9.60…In my state only waitstaff & bartenders can get paid the tipped minimum (now $6.07) so all of our drivers now make $9.60 plus a set amount per delivery order (plus tips of course). We had to lower their per run reimbursement from $1.50 per order to $1.00. All my remaining employees make more than minimum so it does not affect me other than drivers.

Do you guys pay drivers tipped minimum or regular minimum to drivers? Many of my drivers make more tips than my waitstaff so it does not seem fair to me.

 

[bodegahwy]

Tipped wage. It is above tipped minimum but still well below regular minimum. Our drivers make very good money. We hold CC tips and pay them on the pay check so they are all declared. We did not used to do it that way but now so much of the business is paid by CC we were running into nights where the cash taken was not enough to pay out the tips and we were forever having to adjust the till.

 

[d9phoenix]

We did not used to do it that way but now so much of the business is paid by CC we were running into nights where the cash taken was not enough to pay out the tips and we were forever having to adjust the till.

I haven’t gotten that far yet, but in the last year their was two nights we had to pay tips the next day. I keep telling my driver’s that it is going to happen, and probably sooner rather then later.

 

[314]

Tipped wage. It is above tipped minimum but still well below regular minimum. Our drivers make very good money. We hold CC tips and pay them on the pay check so they are all declared. We did not used to do it that way but now so much of the business is paid by CC we were running into nights where the cash taken was not enough to pay out the tips and we were forever having to adjust the till.

What will happen to take care of fuel? Give them all a gas card?

 

[bodegahwy]

What will happen to take care of fuel? Give them all a gas card?

For the most part they are driving my cars. Since we stopping paying out CC tips we have never fallen short of being able to cover the gas with cash. If CC goes to an even greater portion of the business we might have to look at that.

 

[pizzapiratespp]

No tipped wages in California. Drivers make 10.30 to $ 13.00 per hour. $1.50 per delivery + tips. I counted out a driver the other day and he had $250 left over after I took out the store money. I asked him if that was right because it was so much. He said no, he also had another $100 in his car. The guy made a total of $450 in 9 hours.

 

[GotRocks]

I do not even know what the Min-Wage is in my state, I see paying minimum like telling your staff “If I could legally pay you less, I would” And you’ll never get a decent crew that way.
How did see it stated on this forum? “If you pay peanuts, you get monkeys”
Then someone else commented that sometimes when you pay bigger peanuts, you just get bigger monkeys

There is a place by us that has gone to a 20-22% Mandatory gratuity on all orders, and they disperse that revenue evenly among the entire crew. (Delta Diner as seen on DD&D)
Allegedly there was no backlash from customers, and the whole crew is very happy and making very good money.
I may consider something like that here, after more research

 

[RobT]

ours in CT went from $9.15 to $9.60…In my state only waitstaff & bartenders can get paid the tipped minimum (now $6.07) so all of our drivers now make $9.60 plus a set amount per delivery order (plus tips of course). We had to lower their per run reimbursement from $1.50 per order to $1.00. All my remaining employees make more than minimum so it does not affect me other than drivers.

Do you guys pay drivers tipped minimum or regular minimum to drivers? Many of my drivers make more tips than my waitstaff so it does not seem fair to me.

I pay tipped minimum for drivers and they must declare tips. They still make $20-$30 an hour and far more then my inside help.

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