Wage Required to Afford a 2-Bedroom Rental in Every State

a reply to: Xtrozero

Eliminate them.

How the hell does a job not generate enough money?

originally posted by: onequestion
a reply to: Xtrozero

Eliminate them.

How the hell does a job not generate enough money?

As example, my neighbor could not sustain a Quiznos with 8 employees at 10 bucks an hour each as per WA minimum wage, so yes he closed up shop. You might pay a person 20 bucks to mow your lawn but maybe not 50, so yes that job is now eliminated too.

a reply to: Xtrozero

Why couldn't they afford it?

a reply to: Xtrozero

Then at some point we will need to realize that socialized support is the future for 50% of America.

I'm reminded of Romney, with his 47% -

what percentage of Americans in the present are dependent on 'socialized support'?

originally posted by: onequestion
a reply to: Xtrozero

Why couldn't they afford it?

Probably because their sandwiches are expensive, and didn't do very much business. I don't go there because it's not worth what I'm paying. Sure, it's a good sandwich, but I don't feel it's worth what they're charging.

a reply to: MystikMushroom

I'm sure that plus taxes plus franchising is what put them out of business has nothing to do with the employees.

originally posted by: BuzzyWigs
a reply to: Xtrozero

Then at some point we will need to realize that socialized support is the future for 50% of America.

I'm reminded of Romney, with his 47% -

what percentage of Americans in the present are dependent on 'socialized support'?

well from 2011 ....(article from 2013)

Census: 49% of Americans Get Gov’t Benefits; 82M in Households on Medicaid

perhaps a bit higher now with the new Medicaid enrollees etc.

a reply to: xuenchen

That was my point. Xtro said "in the future" - and I'm saying "it's already here".

originally posted by: onequestion
a reply to: Xtrozero

Why couldn't they afford it?

Basically he could not make a living at owning and running the Quiznos. Liked we talked about in other posts, it is not like there is a large margin to over come larger pay hikes. It might be the whole way we do business, I'm not an expert on that end, but things are slow to change.

He works 1/2 the time today making 2 times his Quiznos take home working for a larger company, he is better off, but then there is 8 jobs gone for good.

a reply to: Xtrozero

That has nothing to do with minimum wage they probably ran a crappy business model.

originally posted by: MystikMushroom

Probably because their sandwiches are expensive, and didn't do very much business. I don't go there because it's not worth what I'm paying. Sure, it's a good sandwich, but I don't feel it's worth what they're charging.

They can't compete with the crappy and inferior subway sandwich, but also 700+ dollars a day in labor cost is a lot of sandwiches.

originally posted by: onequestion
a reply to: Xtrozero

That has nothing to do with minimum wage they probably ran a crappy business model.

Maybe, maybe everyone runs a crappy business model.

a reply to: Xtrozero

Bad investment choice then.

Its possible that anyone who ever bought one of those chains made a bad investment. I liked their sandwich dont get me wrong but I can start my own sub shop and create a higher quality product with locally sourced good that are organic, charge the same price, pay my employees better and offer a wider range of products, with no franchising cost and lower overhead.

Simple as that.

originally posted by: onequestion
a reply to: MystikMushroom

I'm sure that plus taxes plus franchising is what put them out of business has nothing to do with the employees.

I want to come work for you then, how much are you going to pay me? My needs are about 60 per hour so lets start there, OK?

a reply to: Xtrozero

The industry standard for what I do is $65 an hour on the west coast. Most classes you will make $30 an hour and personal training sessions you can make 40 and up if you build your client base.

Youll need 10 years of experience though before anyone will hire you and the market is extremely competitive.

originally posted by: onequestion

Youll need 10 years of experience though before anyone will hire you and the market is extremely competitive.

Do you think people will hire me, being a new guy training people, 8 dollars an hour?

a reply to: Xtrozero

Its doesnt work that way.

originally posted by: onequestion
a reply to: Xtrozero

Its doesnt work that way.

So I can't work for 8 bucks an hour because I do not have 10 years experience to make 65 per hour?

a reply to: onequestion

Do it! I'll come work for you, seriously!

originally posted by: Xtrozero
As example, my neighbor could not sustain a Quiznos with 8 employees at 10 bucks an hour each as per WA minimum wage, so yes he closed up shop. You might pay a person 20 bucks to mow your lawn but maybe not 50, so yes that job is now eliminated too.

From my understanding of franchises they set you up to fail. All they care about is that you pay the fee, the standards and regulations they hold you to are designed to put you out of business so that someone else tries again later. It's also designed that way to create innovation and improve the stores out of the ones that are successful.

It's been awhile since I was in a Quiznos, but when we had one in town they were open for about 14 hours a day (8 am-10pm). And it typically took them about 8 minutes to make a sandwich. They could make two at once. So that's a maximum throughput of 15 sandwiches per hour or 210 per day. In reality there's a lot of downtime where the employees are doing tasks other than making sandwiches like cleaning, refilling drinks, mopping, stocking, and other things. Lets say 40% of time is making sandwiches. That would be 84 sandwiches per day, at $8 per (it's been awhile, are they higher now?) that's $672 per day.

You would probably need 6 employees each day to cover 14 hours, that's 2 managers and 4 others. Throw in shift rotations to stay open all week and it's more like 3 managers, 7 others. Those 14 hour shifts probably also need an hour of cleaning time at night. So 15 hours per day, that's 105 hours per week. For 3 managers that's 35 hours per week each. For your other employees where you try to have 2 on at a time that's 210 hours per week or 30 hours per person. If the managers get $10/hour that's $1050 in manager pay and if the others get minimum wage that's $1564.5 in their pay. That's a payroll of $2604.5 per week but your store is only making $672 per day or $4704 per week gross.

Throw in the cost of product, the cost of rent, and utilities and you easily cover the rest of that and we haven't even gotten to profit for the owner.

I would be surprised if they could keep the store open too. I remember a person I used to know who worked at a Subway, he would always complain to me that day if he had to do $80 of sales in an hour. His reasoning was $80 was a lot, that's 10 sandwiches or one every 6 minutes. My reasoning was, how is a store staying open at such a low income level?

A large part of the problem here is that these stores just aren't pushing the volume to pay more. A large part of that is because we replaced real jobs with these jobs. If there were half as many service sector jobs out there, instead replaced by real career level jobs, everyone would do much better. The sandwich and coffee shops would get the increased volume to pay more, while the others would get jobs that already pay more.