Odoba Mexican Grill: Supply and Demand

Employment impacts would be very noticeable I believe. It would allow employees to get more hours which would allow them to make more money. This in turn would help the restaurant turn over more money as

One of the biggest negative effects of raising the minimum wage is that it would severely hurt small businesses. If the minimum wage were to be raised it would force the owners to pay their employees more money that they might not have. In order to pay the employees the newly raised minimum wage they are gonna have to raise the prices which will lead to the loss of consumers, and might eventually lead to the store going out of business. According to a Gallup poll done in 2013, 60 percent of small-business owners said that raising minimum wage will “hurt small business owners. James Richardson, MBA, Vice President of the fast food chain White Castle, said that the company would be forced to close

If the minimum wage was raised, I believe it would encourage businesses to be more creative on how to effectively utilize their staff and would push them to raise the bar in terms of employee training and business process. Perhaps businesses could be regulated in a way that those who have a higher net worth would be required to offer higher wages while younger or struggling businesses would have a lower wage expectations. That way we know that businesses who can afford it are paying it, but those who can’t aren’t being forces to close doors either.

A 2015 Purdue University study found that raising the wage of fast food restaurant employees to $15 or $22 per hour would result in a price increase of 4.3% and 25% respectively, or a reduction in product size between 12% and 70%.

The restaurant industry is highly competitive, and that competition could lower their revenues, margins and market share. The business is subject to macroeconomic and other factors that may negatively impact the results of operations. Restaurant development plans under development agreements may not be implemented effectively. IHOP Corp. may have difficulty expanding in new markets outside the United States.

Minimum wage is currently at 7.25 (Furman) if minimum wage goes up so does everything else, so it wouldn’t make a difference. Food cost will go up, such as milk sugar, and everything else we use on a daily basis. Not only that but, It could cause a store to shut down due to having to pay employees twice as much as before. Labor cost would be high and unreasonable. If the prices of items or product being sold doesn’t go up.

I agree that we shouldn't increase the minimum wage for non-tipped employees. If the non-tip wage was increased most workers would lose their jobs, or layed off so that the other workers can make the desired amount they are wanting. Many restaurants would have to also close down due to lack of bussiness.

As for small businesses being harmed by an increase in minimum wage, Batra proves that a rise in minimum wage, as long as it is not faster than the rise in prices, will not adversely affect the businesses’ profits. He says that a business’s profit equals the revenue, less wage costs and all other costs. Batra offers an example with a popular fast-food franchise:

Because of their size, small businesses do not make as much profit as their corporate competitors do. According to Michael Saltsman, a franchise will spend about 30.5% of their sales on their employee’s pay. He estimates that 5% of sales is profit for the franchise (as cited by Knowledge, Business Squeeze section, para. 8). Small business owners are also concerned about the number of employees they could have working for them. If wages were to go up to $15.00 per hour, small business owners would have to give their employees fewer hours, or shrink their work force. Another negative impact on small businesses is trying to make up the money to pay for the increase in pay. Many small businesses would have to raise the prices on their services to pay their employees the required amount. This could cause less business in the facility if customers no longer are interested in paying more.

Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.

Should all fast food workers get a higher wage? No, but I think many fast food workers should get paid more. The reason I think this is because most hard working fast food workers aren't getting paid enough for the amount of work they do. Others aren’t working hard at all, or their jobs are to easy. Raising the minimum wage would pay bad workers too mutch. Still, we need to change something, if the minimum wage stays the same, fast food places won’t pay hard workers enough. Raising the minimum wage would force fast food restaurants to give higher wages to the people who don't deserve it. My solution would be to have a separate organization examines the work of the fast food workers to determine what positions deserve above minimum wage

The current position of Castle’s Family Restaurant is quite stable, but changes in the business environment may have a negative impact on the further business development of the company.

This is because, when the condition of the current market is not doing well, some strategy in considering the increase in the foods price, introducing a new dish should be limited due to the less or limited spending of the customers. The best option to secure and have a constant business growth during these time is to have more promotions and value set meal to attract the customers.

While the bill to raise the minimum wage, the Fair Minimum Wage Act, would provide a 33 percent wage increase for the regular worker, earnings would more than double for food service workers. As a result of these increases in wages, retail grocery store food prices would only increase by an average of less than half a percent. (Gimenez)

Example - Food prices are increasing dramatically which has become difficult for the hotel to achieve food cost of sales. According to Ionian Hotel Enterprises S.A. standards it is very important for the hotel to deliver high quality of food to guest and meet expectations. It has become inflexible for hotel to control the cost of sales and achieve targeted profit margins. Due to increasing cost and limited budget to spend, it will be a challenge for the hotel to sustain profit margins.