Julie
Jargon's article, Chipotle Makes a New Kind of Play for Labor, appears
on the front page of section B - Business and Tech, August 24, 2015.
She reports on a
planned mass hiring day - September 9th. Chipotle plans to hire 4,000
people on the single day increasing their workforce by nearly 7%.
The
article features a graph of wage growth for limited-service restaurants vs.
the entire private sector. The source is Bureau of Labor Statistics.
LSR workers have seen wage growth of 6.77%
in the 2.5 year period ended this June vs. 5.37% for the entire private
sector.
.
I checked on the Restaurant
Investor Report for closing rates in the first half of 2015 for fast
casual Mexican/Latin restaurants. The closing rate was far below other sectors.
Chipotle's
closings are a mere 1/8 of 1% (.00125). Almost all Chipotle locations remained in business during the six month report period.
Independents and regional chains
operating casual dining Mexican/Latin concept closed 4.83%. The entire Mexican/Latin fast casual chains group saw a closing rate of 1.46%. Mexican/Latin fast casual independents closed 4.36%.
Monday, August 24, 2015
Saturday, August 22, 2015
Seattle Area Restaurants Face Higher Wages
Fox News ran an interesting article, written by Dan Springer, a month ago on their website in the Politics section:
Seattle sees fallout from $15 minimum wage, as other cities follow suit by Dan Springer
The article focused on the impact of a higher minimum wage - $15 per hour.
In his article, Mr. Springer delved into the actions taken by restaurants:
"Some restaurants have tacked on a 15 percent surcharge to cover the higher wages. And some managers are no longer encouraging customers to tip, leading to a redistribution of income. Workers in the back of the kitchen, such as dishwashers and cooks, are getting paid more, but servers who rely on tips are seeing a pay cut.
Some long-time Seattle restaurants have closed altogether, though none of the owners publicly blamed the minimum wage law."
With regard to the issue of long-time Seattle restaurants closing altogether, there is a tick upward in closings reported by RestaurantData.com in the new Restaurant Investor Report.
In general, Seattle has a vibrant restaurant industry. The report is very interesting with regard to independently owned full service restaurants, including regional chain concepts.
As of June 30, 2015, the report showed the 6 month closing rate for long-time (over 3 years in business) full service restaurants increased by 46% from 2.7% in the second half of 2014 to a 3.9% rate in the first half of 2015.
A solid 93.4% of full service restaurants owned by sole proprietors and regional chains remained in business.
Seattle sees fallout from $15 minimum wage, as other cities follow suit by Dan Springer
The article focused on the impact of a higher minimum wage - $15 per hour.
In his article, Mr. Springer delved into the actions taken by restaurants:
"Some restaurants have tacked on a 15 percent surcharge to cover the higher wages. And some managers are no longer encouraging customers to tip, leading to a redistribution of income. Workers in the back of the kitchen, such as dishwashers and cooks, are getting paid more, but servers who rely on tips are seeing a pay cut.
Some long-time Seattle restaurants have closed altogether, though none of the owners publicly blamed the minimum wage law."
With regard to the issue of long-time Seattle restaurants closing altogether, there is a tick upward in closings reported by RestaurantData.com in the new Restaurant Investor Report.
In general, Seattle has a vibrant restaurant industry. The report is very interesting with regard to independently owned full service restaurants, including regional chain concepts.
As of June 30, 2015, the report showed the 6 month closing rate for long-time (over 3 years in business) full service restaurants increased by 46% from 2.7% in the second half of 2014 to a 3.9% rate in the first half of 2015.
A solid 93.4% of full service restaurants owned by sole proprietors and regional chains remained in business.
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