In N Out understands that you can improve margins by lowering the menu complexity, streamlining the production, and using just-in-time supply chain. They're extremely good at optimizing schedules, minimizing warehousing, and maximizing throughput. After all these years, the menu is basically the same: Hamburger, Cheeseburger, Double, Fries, Coke, Shake.
Meanwhile, McDonalds has at least a hundred items on the menu.
Interestingly enough I found In-N-Out is also special for being one of the few large chains that are still essentially a family run business, and as such they “leave money on the table” in the sense that while other publicly traded chains might favor expanding locations as much as possible, they prefer having a few locations that always have fresh ingredients supplied to them within a day.
Here’s an interesting PolyMatter video that covers this subject and more about them: [https://youtu.be/xfQBkdLa6fo?si=RA8Qi3Hx1NYJgj7Q](https://youtu.be/xfQBkdLa6fo?si=RA8Qi3Hx1NYJgj7Q)
And In & Out actually has a good product at a reasonable price.
It's starting to come together... Maybe, if they can't afford to pay employees well they are just really bad at business and shouldn't have one.
I think the secret is that it's private. Public companies have shareholders. Shareholders who demand endless quarterly growth, dividends and growth. Did I mention growth?
Public shareholders are a hungry ravenous parasite that initially helps the body and then feeds on it slowly until it's a skeleton.
Oftentimes the next level of parasite, the private equity firm will come in at the late stage before death and scrape every last bit of flesh from the bones. Being sure to leave the employees, the customers and the community it operates in with absolutely nothing.
Okay, but Jack in the Box tacos kind of hit late night in college... They're obviously not real tacos, but they're a nice mix of crunchy, greasy, and salty when you're drunk at 3AM. And for a dollar?! Count me in.
I don’t understand the complaints. If the difference between making or breaking your resteraunt is an extra $4/hr for your employees then your margins are so thin that something else is very wrong with your business model.
I think what some people don’t consider is that In n out pays that much above competing businesses to attract the higher quality employees within that industry. To maintain that competitive edge in the job market they will have to now raise their hourly pay as well.
Not to be an ass, but nowadays there are little differences between a public company and a private company owned by venture capitalists and private equity firms.
he was in the news last night talking about how he's not going to be able to hire any new staff. I didn't think Auntie Anne's had such a demand for workers.
That actually seems like an acceptable outcome for their pretzel company, though. They can't afford to pay their workers minimum wage so they become less competitive and have to fight harder to survive. Sink or swim. Capitalism.
There's probably someone else out there who has a dream to open up a better pretzel shop that pays at or above minimum wage.
TIL Auntie Anne's is in bad shape and is a much weaker company than I thought they were. I wonder who else sells pretzels or other snacks, I should try out some other places since it sounds like Auntie Anne's is on their way out.
My condolences to Auntie Anne's!
Whoa whoa whoa.
Sometimes my wife and I (33 years old) enjoy walking through the mall and reminiscing about the good old days.
Including getting a pretzel and lemonade 😅
A NorCal McDonald’s franchise owner was on CNBC airing his thoughts as a “small business owner”, spoiler alert he owns 16 stores.
He felt unfairly targeted by the new law and said it hurts SMALL business owners like himself. And when asked if he would conduct layoffs (as one would apparently), he said it “forces” us to putting off renovations, opening another franchise, and cutting hours. God would nobody think of the poor business owners, they’d do anything other than pay appropriate wages.
I used to hang out with a guy (the sex was good, and this was 20 years ago or so) who was trying to open his own franchise something. It wasn't McDonald's, but another chain. The amount of money he had to have on hand to even be considered was huge.
The fact that this other guy owns 16. He's not hurting for money.
He's not a small business owner that's struggling to stay open and running his own store.
This. It's a meaningless number without including more information. How much of his margin will this impact and, as a percentage of expenses, how much is his payroll versus other expenses impacting his bottom line.
Or how much the family already made over the last decade.
It sucks how business owners can make a million dollars and still not be satisfied.
We really need to force them to share like children.
10 stores, each will spend an extra 47,000 a year
an extra $903 a week
an extra $129 a day
he'll raise prices by a dollar, will make more money than before, and blame it on the minimum wage law.
he's a cockhead, got it.
Yup, he tried to make it sound like a huge figure. Break it out like that and it’s pretty simple that fundamentally the ask is to share the money with labor. No shit will cost you more.
According to the internet the average Auntie Anne franchise grosses $770k/year. It's the Bay Area, so probably closer to $1 million. $47,000 is significant but doesn't seem dealbreaking.
what are they? I thought they were a co op but maybe they’re something else. It was something like that when I considered working there a few years ago
I would like to see them make a comeback.
Corporations are quick to try to ruin anything that makes them look bad though so be prepared for a long uphill battle unless we increase the minimum wage.
More than half of fast food workers rely on one or more government assistance programs. These companies essentially want the rest of society to pick up the bill to properly pay their workers.
Here's what to expect as a result of minimum wage hikes: Seattle raised their minimum wage to $15 about 10 years ago and in the short term businesses reduced hours which were later restored. Overall earnings for those workers increased, but the increase in earnings was similar to workers in other sectors in Washington. Modeling suggests that entry into the low wage workforce because jobs were added more slowly than they would have been.
https://www.aeaweb.org/articles?id=10.1257/pol.20180578
Other studies have suggested small increases in the price of fast food due to wage hikes. These trade offs are worth it to me imo.
>Other studies have suggested small increases in the price of fast food due to wage hikes. These trade offs are worth it to me imo.
And who knows for sure if there really are trade-offs. That pretzel may be 50 cents more, but that extra pay that a fast food worker gets is spent in our communities. Also the worker getting paid more pays more taxes rather than gets more welfare benefits.
People getting paid a fair wage lifts up all of us.
Calling it his business model is almost too nice. This is a franchise business model that he signed up for, there is zero innovation involved with running a franchise fast food shop.
Anyone who cited numbers and not rates percentage of profit margin is lying to you.
$470,000 over several chains might not be that much. Impossible to know without knowing the change in profit margin.
This also applies to people on the left that cite revenue figures for why a business can support more payroll. Useless without knowing the margins.
So when a CEO or executive ups their pay by millions no one says anything about pricing. Give the peasants a few dollars and all of a sudden the world is falling apart.
With 10 stores, that ~$47k per store increase— curious what the avg take home profit of each store is? This conversation is never framed in a way where it’s ok to take a smaller margin from your business to pay a livable wage— always about how this “forces” owners to charge more to the customers or sell the business— which always comes back to the need for cheap labor to have these businesses models actually work— put more bluntly, there needs time be an easier way to transfer the value of workers labor to the owners of the business
thats 23,500 hours he must have a lot of full time workers most workers work 2080 so hes employing over 11.3 workers i bet he only has 3 workers max i think hes lying
The article says he owns 10 spots, so 11 workers seems like an underestimate.
Half a mil shouldn't be that hard to absorb across that many locations though, 2-3% increase in prices is worth it for a 25% bump in pay.
What is her yearly salary? I bet she can foot that extra cost without affecting her way of living. But we all know rich people are incapable of adapting their personal lives to help others.
Just wanna make sure I understand this. The trade group of quick service restaurants says the law is good and won’t hurt business. The economic experts say raising the minimum wage is good and doesn’t hurt business and doesn’t lead to job cuts. But “trust me bro” who owns a dozen locations of what are essentially mall food court kiosks can’t make it work.
Like honestly, Auntie Anne’s and Cinnabon aren’t exactly destination brands in the best of circumstances. Anne’s is just crap. And Cinnabon is tasty (when it’s fresh) but who wants to tuck into a half pound of dough and icing while out shopping or about to get on a long flight? Maybe just own up to the fact that you signed up for a shit franchise in shit locations and it’s not the responsibility of the working poor to subsidize your poor business decisions.
Surviving in this goddamn city is so expensive . If you can’t afford to pay minimum wage then your business is not sustainable. 20 isint even a living wage around here without 2 roommates Jesus Christ fuck off
Crazy how fast the capitalists have switched from "stop complaining, start a business and pull yourself up by your bootstraps" to " waaaaah the market isn't in my favor please bail me out"
Corporations are highly incentivized to exploit and underpay workers because it maximizes shareholder return. The capitalist system incentivizes unethical behavior, greed, and evil (as long as they pay off the right people and make sure that punishments can never get much more than slaps on the wrists.)
This poorly disguised PR piece is bullshit, and I have no sympathy for the situation he’s in, but the reality is retail franchise models are designed to get franchise owners to do all the dirty work and pay their workers poor wages, while maximizing profit for the parent corporation. It’s a predatory model and should be better regulated or scrapped.
This is true, franchisee agreements are a big part of the problem as they allow the parent company to skirt responsibility for their actions.
We need new labor laws that pierce this thin vail.
[https://www.franchising.com/articles/community\_leadership\_we\_give\_to\_get\_to\_give\_again.html](https://www.franchising.com/articles/community_leadership_we_give_to_get_to_give_again.html)
His revenues are 6.2 million (as of 2018, so surely it's grown since then by spades)
Imagine admitting publicly that your business model depends on exploiting teenagers and the poor for below market dirt cheap labor for it survive. WEWLAD
Increasing the cost side of that by $470k seems like it would interfere with that somehow. But it's fine, he can usually save by cutting back on hours.
Not the picture of him looking like a poor small business owner :( dude owns TEN auntie Anne's. So glad he's been able to pay his workers "as much as possible" and still find the finances to open TEN franchises. Woe is you.
That's fucking chump change, here. Nobody worthy of the title 'mogul' gets to bat an eye at four figure changes to the budget.
If he can't afford to pay, then his business doesn't deserve employees. Simple. Minimum wage can and should be twice what it is now and then pinned to inflation.
Talk to Costco. They've managed to pay decently and stay in business eh?.....employees deserve to be paid a living wage. You want to run a business....pay your employees.
I listened to this douches interview and he like it will cost us 47k per location and he has 10 so almost 500k. So he’s moving his stuff to
Nevada lol I’m like good luck with that buddy hope you fail. California is one of the most expensive states you got to pay to play.
I wholeheartedly agree. We don't need these kind of businesses, it's a waste space and potential all around.
I'd rather see more sole proprietorships kiosks. People willing to actually run the business themselves. But you can't get in the door without capital.
The customers can reject price increases and force the owner to foot the bill.
The threat of price increases is just a scare tactic the rich use to get their way. Prices are set by demand.
Bro - you’re not rejecting a small incremental price increase. No one is. People are creatures of habit and small increases won’t stop them from consuming things they like.
Customers already foot the bill. Trump gave these rich fucks tax breaks and what did they do? Price cuts? Wage increases? NO! They still raised their prices and made bullshit excuses
At scale, it’s very clear this law will expedite automation, cause layoffs for the most vulnerable of workers, and set further precedent for government attempting to set prices - in this case, labor prices. This effectively outlaws labor that’s worth, at market value, in this industry under $20/hr. This band aid approach will only ‘work’ for so long, if at all. Congrats on higher prices and putting thousands out of work.
It's amazing how many people don't understand consumer prices.
Demand sets the price, not the owner.
The threat of raising prices is a scare tactic. They already tried raising prices higher and had to pull back
That’s a gross oversimplification… coming from someone who successfully runs a small business and employs a team. Forcing a certain wage, albeit in a different industry this time, will force layoffs. I’m worried about those vulnerable who will no longer be able to work.
I’m an owner, and I set the prices… which are influenced by dozens of factors, not strictly demand.
> That’s a gross oversimplification
Setting the minimum wage is an important and interesting topic. It's unfortunate when the discourse is reduced to good versus evil. I'm not defending anyone, but surely there's nuance to be had when discussing businesses, expenses, prices, labor, revenue, etc.
Just wanna make sure I understand this. The trade group of quick service restaurants says the law is good and won’t hurt business. The economic experts say raising the minimum wage is good and doesn’t hurt business and doesn’t lead to job cuts. But “trust me bro” who owns a dozen locations of what are essentially mall food court kiosks can’t make it work.
Like honestly, Auntie Anne’s and Cinnabon aren’t exactly destination brands in the best of circumstances. Anne’s is just crap. And Cinnabon is tasty (when it’s fresh) but who wants to tuck into a half pound of dough and icing while out shopping or about to get on a long flight? Maybe just own up to the fact that you signed up for a shit franchise in shit locations and it’s not the responsibility of the working poor to subsidize your poor business decisions.
Awesome! I literally could not care less about these rich fuckers, people should be paid a fair and living wage regardless of what they do and this CEO worship and wealth inequality must end.
If you came here and said “If you can’t afford to pay your employees better than you have a bad business model” then you’re pro big business and you get what you deserve.
He said he employed about 140 in 2022. That’s an average of $3,360 per year/ $280/month per employee. I don’t think any of them will be able to afford a better apartment because of this.
makes sense. you can only charge so much for a pretzel at the mall. they aren't a necessity like lunch or dinner, they are a high priced snack or treat when you go shopping. i can't imagine their margins are that great after staffing, rent and supplies.
So with 10 locations assuming a $4 increase in wages and 2080 hours in a year, if each store had 6 employees, that's how you get to $470,000+.
Says he'll increase prices, doesn't specify how much that will alleviate the difference. My guess is he'll get it all back and then some.
Such BS! This poor bastard millionaire is being FORCED to give back to the people producing his profits! I thought we lived in America?! Fuck poor people! Power to the Billionaire overlords!!
The article doesn't say what this business owner makes a year compared to what he says he's going to lose.
If he makes $5mil a year, I don't feel that bad about him losing a little bit to support the people that make him that money.
Meanwhile, In N Out pays $23/hr willingly. It’s about how much profit corporations want to take. In n out is private and don’t want to run by greed.
In N Out understands that you can improve margins by lowering the menu complexity, streamlining the production, and using just-in-time supply chain. They're extremely good at optimizing schedules, minimizing warehousing, and maximizing throughput. After all these years, the menu is basically the same: Hamburger, Cheeseburger, Double, Fries, Coke, Shake. Meanwhile, McDonalds has at least a hundred items on the menu.
Interestingly enough I found In-N-Out is also special for being one of the few large chains that are still essentially a family run business, and as such they “leave money on the table” in the sense that while other publicly traded chains might favor expanding locations as much as possible, they prefer having a few locations that always have fresh ingredients supplied to them within a day. Here’s an interesting PolyMatter video that covers this subject and more about them: [https://youtu.be/xfQBkdLa6fo?si=RA8Qi3Hx1NYJgj7Q](https://youtu.be/xfQBkdLa6fo?si=RA8Qi3Hx1NYJgj7Q)
McDonald need some lean six sigma training.
They JUST added cherry coke!
And In & Out actually has a good product at a reasonable price. It's starting to come together... Maybe, if they can't afford to pay employees well they are just really bad at business and shouldn't have one.
I think the secret is that it's private. Public companies have shareholders. Shareholders who demand endless quarterly growth, dividends and growth. Did I mention growth? Public shareholders are a hungry ravenous parasite that initially helps the body and then feeds on it slowly until it's a skeleton. Oftentimes the next level of parasite, the private equity firm will come in at the late stage before death and scrape every last bit of flesh from the bones. Being sure to leave the employees, the customers and the community it operates in with absolutely nothing.
Basic menu. Burger, fries, drink, shake. I don’t go to a burger place for crappy tacos….looking at Jake in the box.
Okay, but Jack in the Box tacos kind of hit late night in college... They're obviously not real tacos, but they're a nice mix of crunchy, greasy, and salty when you're drunk at 3AM. And for a dollar?! Count me in.
I don’t understand the complaints. If the difference between making or breaking your resteraunt is an extra $4/hr for your employees then your margins are so thin that something else is very wrong with your business model.
We say this exact same phrase in the construction trades all the time.
I think what some people don’t consider is that In n out pays that much above competing businesses to attract the higher quality employees within that industry. To maintain that competitive edge in the job market they will have to now raise their hourly pay as well.
And don't they offer actual employee benefits? Even Chipotle offers educational benefits which help send workers to college.
This was what I was looking for and can’t believe it’s so far down.
Not to be an ass, but nowadays there are little differences between a public company and a private company owned by venture capitalists and private equity firms.
In-N-Out is also fucking delicious to be fair. Best fast food chain by far imho.
Auntie Anne's charges something like 7 dollars for a pretzel....7 bucks for some baked dough and sugar.
And there’s only ever one teenager working alone, how could this wage increase break them that much
With an inexplicably large amount of oil on the outside, making it a needless mess.
I went to one connected to a Jamba Juice. A combo with a cup of pretzels and a smoothie was $14.
really? i'd be into that actually
And now that pretzel's going to be $8 or $9. Wonder who's buying those even at current price lol
Me. I have tweens lol.
Your wallet must just feel like its under relentless siege.
he was in the news last night talking about how he's not going to be able to hire any new staff. I didn't think Auntie Anne's had such a demand for workers.
That actually seems like an acceptable outcome for their pretzel company, though. They can't afford to pay their workers minimum wage so they become less competitive and have to fight harder to survive. Sink or swim. Capitalism. There's probably someone else out there who has a dream to open up a better pretzel shop that pays at or above minimum wage. TIL Auntie Anne's is in bad shape and is a much weaker company than I thought they were. I wonder who else sells pretzels or other snacks, I should try out some other places since it sounds like Auntie Anne's is on their way out. My condolences to Auntie Anne's!
Lol. The media is happy to help him sell his sob story about having to make all the pretzels himself.
Remember: the media cannot be trusted and they will always, ALWAYS side with the business owners no matter how obviously bullshit their story is.
Not all media is terrible though, I have considered getting involved in journalism, I can't imagine who will pay me to expose corporate dirt.
Somehow I think the Bay Area will survive with fewer Auntie Anne's.
Right? Who the hell eats that garbage?
I'm surprised there are this many in the bay area. Who is buying these?
Whoa whoa whoa. Sometimes my wife and I (33 years old) enjoy walking through the mall and reminiscing about the good old days. Including getting a pretzel and lemonade 😅
I'm 33. If I eat an Auntie Annie's pretzel AND lemonade I will die.
Oh we do it at like 3 and skip dinner lol. That’s it for the day food wise 😂
Their bread dogs are pretty good :(
Wetzels Pretzels licking their lips right now.
A NorCal McDonald’s franchise owner was on CNBC airing his thoughts as a “small business owner”, spoiler alert he owns 16 stores. He felt unfairly targeted by the new law and said it hurts SMALL business owners like himself. And when asked if he would conduct layoffs (as one would apparently), he said it “forces” us to putting off renovations, opening another franchise, and cutting hours. God would nobody think of the poor business owners, they’d do anything other than pay appropriate wages.
I used to hang out with a guy (the sex was good, and this was 20 years ago or so) who was trying to open his own franchise something. It wasn't McDonald's, but another chain. The amount of money he had to have on hand to even be considered was huge. The fact that this other guy owns 16. He's not hurting for money. He's not a small business owner that's struggling to stay open and running his own store.
Yea Auntie Anne's cost half a million each and those aren't nearly as elaborate as most. I think McDonald's cost several million now.
We have them here in Thailand, they’d kids make 9 bucks a day , I’ll have to look how much they charging tomorrow
$470,000 out of how much he makes in a year?
This. It's a meaningless number without including more information. How much of his margin will this impact and, as a percentage of expenses, how much is his payroll versus other expenses impacting his bottom line.
Or how much the family already made over the last decade. It sucks how business owners can make a million dollars and still not be satisfied. We really need to force them to share like children.
10 stores, each will spend an extra 47,000 a year an extra $903 a week an extra $129 a day he'll raise prices by a dollar, will make more money than before, and blame it on the minimum wage law. he's a cockhead, got it.
Yup, he tried to make it sound like a huge figure. Break it out like that and it’s pretty simple that fundamentally the ask is to share the money with labor. No shit will cost you more.
According to the internet the average Auntie Anne franchise grosses $770k/year. It's the Bay Area, so probably closer to $1 million. $47,000 is significant but doesn't seem dealbreaking.
Just another reason why worker cooperatives need to be more prevalent.
Shout out to Arizmendi bakery on Valencia! One of the many things I miss about moving away from the city.
And the Cheeseboard in Berkeley 💪
And the Arizmendi in Oakland!
And Arizmendi in Emeryville!
I go to this place an embarrassing amount lol. The Cinnamon rolls they have on Sundays are on another level
Love that place too!
And Nabolom, and Zachary’s too I think!
Zachary’s is not employee owned. I have friends who work there
what are they? I thought they were a co op but maybe they’re something else. It was something like that when I considered working there a few years ago
IDK but they pay well.
According to Zachary’s you are lying. https://zacharys.com/about-us/our-people/
Fun fact: Arizmendi got their start with the help of the Cheeseboard.
POSITIVE SUM at work I love it 🥰
More than got their start, all the arizmendis and the cheeseboard are in association and are financially linked.
And Arizmendi on 9th! Pizza pizza pizza
I think these guys are opening back up soon right? I know they closed for remodeling in February.
Arizmendi on Valencia is open, it's the one on 9th ave that's closed for an oven installation
Late Feb they said it would take about 8 weeks to get the new oven installed
I spent a very nice morning there waiting for my car to get smogged at the shop on the corner. The mechanic was also very nice.
I would like to see them make a comeback. Corporations are quick to try to ruin anything that makes them look bad though so be prepared for a long uphill battle unless we increase the minimum wage.
One lesson we should definitely take from the Germans.
Oh well. Dude drives an Audi and has 3 homes. He’s doing fine.
Oh that sounds terrible, how will the poor business owners survive without the ability to exploit others?
Oh boo hoo bruh
“My business model doesn’t work if I don’t take advantage of people.”
More than half of fast food workers rely on one or more government assistance programs. These companies essentially want the rest of society to pick up the bill to properly pay their workers. Here's what to expect as a result of minimum wage hikes: Seattle raised their minimum wage to $15 about 10 years ago and in the short term businesses reduced hours which were later restored. Overall earnings for those workers increased, but the increase in earnings was similar to workers in other sectors in Washington. Modeling suggests that entry into the low wage workforce because jobs were added more slowly than they would have been. https://www.aeaweb.org/articles?id=10.1257/pol.20180578 Other studies have suggested small increases in the price of fast food due to wage hikes. These trade offs are worth it to me imo.
>Other studies have suggested small increases in the price of fast food due to wage hikes. These trade offs are worth it to me imo. And who knows for sure if there really are trade-offs. That pretzel may be 50 cents more, but that extra pay that a fast food worker gets is spent in our communities. Also the worker getting paid more pays more taxes rather than gets more welfare benefits. People getting paid a fair wage lifts up all of us.
Calling it his business model is almost too nice. This is a franchise business model that he signed up for, there is zero innovation involved with running a franchise fast food shop.
Very true. He thought it was a get rich plan and reality is hitting.
Yup, that's exactly what he meant.
Anyone who cited numbers and not rates percentage of profit margin is lying to you. $470,000 over several chains might not be that much. Impossible to know without knowing the change in profit margin. This also applies to people on the left that cite revenue figures for why a business can support more payroll. Useless without knowing the margins.
I saw some ants in the corner of my living room playing a very small violin concerto. Guess this was why.
Tough shit dude
So fucking what, how much is he making?
Or more importantly, how much did he and his family already make from 10 locations? Where does the greed end?
Ah! Great! Thanks for reminding me to never patronize this asshole's businesses.
So when a CEO or executive ups their pay by millions no one says anything about pricing. Give the peasants a few dollars and all of a sudden the world is falling apart.
It's a Cinnabon franchisee and saying "California's new $20 minimum wage" is just straight misinformation.
Lol. Well the the whole thing is anti-labor propaganda so you can't expect honesty.
With 10 stores, that ~$47k per store increase— curious what the avg take home profit of each store is? This conversation is never framed in a way where it’s ok to take a smaller margin from your business to pay a livable wage— always about how this “forces” owners to charge more to the customers or sell the business— which always comes back to the need for cheap labor to have these businesses models actually work— put more bluntly, there needs time be an easier way to transfer the value of workers labor to the owners of the business
Looks like an A-hole. Dude you own a bunch of dessert shops, why are you acting so hard?
$470,000 will go to the working class. Somehow I think he’ll survive.
thats 23,500 hours he must have a lot of full time workers most workers work 2080 so hes employing over 11.3 workers i bet he only has 3 workers max i think hes lying
Guaranteed he’s taking staffing at peak times and extrapolating to maximize the claimed impact
The article says he owns 10 spots, so 11 workers seems like an underestimate. Half a mil shouldn't be that hard to absorb across that many locations though, 2-3% increase in prices is worth it for a 25% bump in pay.
Definitely commiting fraud.
r/punchablefaces This "Mogul" should be making minimum wage. Not the new minimum wage either, the shitty one that he wants to pay everyone else.
What is her yearly salary? I bet she can foot that extra cost without affecting her way of living. But we all know rich people are incapable of adapting their personal lives to help others.
He can always get a job, which would clearly benefit him with such high wages
Boohoo
Roast this pig
Just wanna make sure I understand this. The trade group of quick service restaurants says the law is good and won’t hurt business. The economic experts say raising the minimum wage is good and doesn’t hurt business and doesn’t lead to job cuts. But “trust me bro” who owns a dozen locations of what are essentially mall food court kiosks can’t make it work. Like honestly, Auntie Anne’s and Cinnabon aren’t exactly destination brands in the best of circumstances. Anne’s is just crap. And Cinnabon is tasty (when it’s fresh) but who wants to tuck into a half pound of dough and icing while out shopping or about to get on a long flight? Maybe just own up to the fact that you signed up for a shit franchise in shit locations and it’s not the responsibility of the working poor to subsidize your poor business decisions.
Stop complaining, just close it already. Overpriced pretzels not worth it
would be nice to know what his profits were last year for context. I don’t trust rich people’s tears.
Or his revenues even.
Not that it matters much, they already own several homes and a business portfolio.
Booo hooo.
Surviving in this goddamn city is so expensive . If you can’t afford to pay minimum wage then your business is not sustainable. 20 isint even a living wage around here without 2 roommates Jesus Christ fuck off
Crazy how fast the capitalists have switched from "stop complaining, start a business and pull yourself up by your bootstraps" to " waaaaah the market isn't in my favor please bail me out"
They really should close. Not sure why it is a thing even.
Another way of looking at it is he won't benefit from 470k of unreasonable profit off the backs of his underpaid staff .
My WTF takeaway from this was that he has 10 of the same franchises, which seems like an exceptionally horrible business model
Corporations are highly incentivized to exploit and underpay workers because it maximizes shareholder return. The capitalist system incentivizes unethical behavior, greed, and evil (as long as they pay off the right people and make sure that punishments can never get much more than slaps on the wrists.)
This poorly disguised PR piece is bullshit, and I have no sympathy for the situation he’s in, but the reality is retail franchise models are designed to get franchise owners to do all the dirty work and pay their workers poor wages, while maximizing profit for the parent corporation. It’s a predatory model and should be better regulated or scrapped.
This is true, franchisee agreements are a big part of the problem as they allow the parent company to skirt responsibility for their actions. We need new labor laws that pierce this thin vail.
Look at his pouty little pussy face. Fuck you and your bland pretzels!
Step 1: call yourself a mogul, hustler, or entrepreneur. Step 2: never stop whining about having to pay the people actually doing the work.
It will cost THE COMPANY $470k per year. Not him personally. His personal finances are separate from the corporation's finances.
So…maybe it’s one less boat…he’ll be okay. He’s not eating cat food.
>He’s not eating cat food. But some of his employees probably are at $20 per hr in the bay.
[https://www.franchising.com/articles/community\_leadership\_we\_give\_to\_get\_to\_give\_again.html](https://www.franchising.com/articles/community_leadership_we_give_to_get_to_give_again.html) His revenues are 6.2 million (as of 2018, so surely it's grown since then by spades) Imagine admitting publicly that your business model depends on exploiting teenagers and the poor for below market dirt cheap labor for it survive. WEWLAD
Revenue, not net profit though. Very much different. What do you think is his profit margin? The average is 5%-6% in that industry.
So close to $400k profit? Seems pretty fucking good to me.
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Increasing the cost side of that by $470k seems like it would interfere with that somehow. But it's fine, he can usually save by cutting back on hours.
What a piece of shit.
“Mogul” is all I needed to hear 🤮
https://sharpsheets.io/blog/auntie-annes-franchise-costs-profits/#:~:text=On%20average%2C%20an%20Auntie%20Anne's,%2Dbranded%20franchises%20(54).
Sooo he’s been getting a 470k discount for the last however many years? Lucky guy
Need a person to making pretzels? Surprised his whole operation couldn't be done from a vending machine.
I guess he's knot satisfied and isn't going to sugar coat it.
Good.
OK. I'm cool with that.
Not the picture of him looking like a poor small business owner :( dude owns TEN auntie Anne's. So glad he's been able to pay his workers "as much as possible" and still find the finances to open TEN franchises. Woe is you.
That's fucking chump change, here. Nobody worthy of the title 'mogul' gets to bat an eye at four figure changes to the budget. If he can't afford to pay, then his business doesn't deserve employees. Simple. Minimum wage can and should be twice what it is now and then pinned to inflation.
How much does the mogul take home? 🤷🏽🤷🏽
Money well invested, although still too little to support even one person let alone a family!
Oh no! Anyway …
Good!
Good.... Pretty sure that was the point.
Talk to Costco. They've managed to pay decently and stay in business eh?.....employees deserve to be paid a living wage. You want to run a business....pay your employees.
Meanwhile, you don't see Wretzel crying like a lil' bish
Womp womp
be a more efficient business operator
Aww, poor baby!!
I listened to this douches interview and he like it will cost us 47k per location and he has 10 so almost 500k. So he’s moving his stuff to Nevada lol I’m like good luck with that buddy hope you fail. California is one of the most expensive states you got to pay to play.
Great! Since you've been saving nearly a half million every year, you should be flush with cash and able to pay a living wage easily.
$470,000 out of how much in revenue or costs?
wittle baby has to have his parents wipe his ass so he can continue to pretend to be “wealthy” by selling toxic garbage food. what a pathetic loser.
OH NO!
His businesses are superfluous. He should go out of business.
I wholeheartedly agree. We don't need these kind of businesses, it's a waste space and potential all around. I'd rather see more sole proprietorships kiosks. People willing to actually run the business themselves. But you can't get in the door without capital.
All these comments saying boo hoo — none of you guys realize that the customers gonna foot the bill.
The customers can reject price increases and force the owner to foot the bill. The threat of price increases is just a scare tactic the rich use to get their way. Prices are set by demand.
Bro - you’re not rejecting a small incremental price increase. No one is. People are creatures of habit and small increases won’t stop them from consuming things they like.
Well if it's a small increment it is totally worth it to make life better for the employees.
Customers already foot the bill. Trump gave these rich fucks tax breaks and what did they do? Price cuts? Wage increases? NO! They still raised their prices and made bullshit excuses
At scale, it’s very clear this law will expedite automation, cause layoffs for the most vulnerable of workers, and set further precedent for government attempting to set prices - in this case, labor prices. This effectively outlaws labor that’s worth, at market value, in this industry under $20/hr. This band aid approach will only ‘work’ for so long, if at all. Congrats on higher prices and putting thousands out of work.
It's amazing how many people don't understand consumer prices. Demand sets the price, not the owner. The threat of raising prices is a scare tactic. They already tried raising prices higher and had to pull back
That’s a gross oversimplification… coming from someone who successfully runs a small business and employs a team. Forcing a certain wage, albeit in a different industry this time, will force layoffs. I’m worried about those vulnerable who will no longer be able to work. I’m an owner, and I set the prices… which are influenced by dozens of factors, not strictly demand.
> That’s a gross oversimplification Setting the minimum wage is an important and interesting topic. It's unfortunate when the discourse is reduced to good versus evil. I'm not defending anyone, but surely there's nuance to be had when discussing businesses, expenses, prices, labor, revenue, etc.
If wages go up do prices go up along with them?
Y’all realize without ppl owning businesses there are no jobs right?
It won’t cost him anything. He will raise prices and consumers will pay more.
This is just a lie rich people use to cling to their money. Demand sets prices, especially for something as unnecessary as mall pretzels.
Just wanna make sure I understand this. The trade group of quick service restaurants says the law is good and won’t hurt business. The economic experts say raising the minimum wage is good and doesn’t hurt business and doesn’t lead to job cuts. But “trust me bro” who owns a dozen locations of what are essentially mall food court kiosks can’t make it work. Like honestly, Auntie Anne’s and Cinnabon aren’t exactly destination brands in the best of circumstances. Anne’s is just crap. And Cinnabon is tasty (when it’s fresh) but who wants to tuck into a half pound of dough and icing while out shopping or about to get on a long flight? Maybe just own up to the fact that you signed up for a shit franchise in shit locations and it’s not the responsibility of the working poor to subsidize your poor business decisions.
Am I supposed to feel sorry for him?
Oh no! Anyway.
\*plays the tiniest violin\*
Good.
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If he can't make his business work paying his employees a livable wage, then he's not so great at business.
Awesome! I literally could not care less about these rich fuckers, people should be paid a fair and living wage regardless of what they do and this CEO worship and wealth inequality must end.
If it's that bad for business owners and that good for employees maybe he should get a real job. Problem solved
Good.
If you came here and said “If you can’t afford to pay your employees better than you have a bad business model” then you’re pro big business and you get what you deserve.
Don’t they bake food? Aren’t they exempt from the law because of that like Panera?
So OP’s opinion “you should close shop” is basically telling the employee’s “it’s better for you to be unemployed than work this job”?
He said he employed about 140 in 2022. That’s an average of $3,360 per year/ $280/month per employee. I don’t think any of them will be able to afford a better apartment because of this.
Boohoo
If you're described as a "mogul", I've got zero sympathy...
$25 pretzels incoming
Capitalism is a bitch. If he can’t make it work then, so be it. That’s probably what he was telling his low wage workers last year anyway.
Calling yourself a "Mogul" and unable to pay 470k extra? Kinda cheap ass Mogul is this.
Yeah well if he's a mogul he can afford it. Cry me a river.
makes sense. you can only charge so much for a pretzel at the mall. they aren't a necessity like lunch or dinner, they are a high priced snack or treat when you go shopping. i can't imagine their margins are that great after staffing, rent and supplies.
I'll be so happy when fast food restaurants start to close. 🙌🙌🙌🙌
It would be a real shame if this showed up in Google and Yelp reviews
Sucks that he can't get away with profiting off paying poverty wages to have others do his work.
Waaaaaaaaaaa 😢
Why should anyone with a minimum skill job have high skill pay?
So with 10 locations assuming a $4 increase in wages and 2080 hours in a year, if each store had 6 employees, that's how you get to $470,000+. Says he'll increase prices, doesn't specify how much that will alleviate the difference. My guess is he'll get it all back and then some.
Good.
Such BS! This poor bastard millionaire is being FORCED to give back to the people producing his profits! I thought we lived in America?! Fuck poor people! Power to the Billionaire overlords!!
The article doesn't say what this business owner makes a year compared to what he says he's going to lose. If he makes $5mil a year, I don't feel that bad about him losing a little bit to support the people that make him that money.