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View Diary: Don't Worry "Papa John": We Understand (191 comments)

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  •  I actually don't see anything wrong with simply (2+ / 0-)
    Recommended by:
    elwior, RDemocrat

    passing additional costs on to consumers.  Factoring in cost of goods sold is a standard practice when identifying price points for products, and, unless you're in an extremely labor intensive business, is unlikely to add much to final costs no matter what labor related expense you're adding.

    Especially if you're in a business that mainly serves low-wage employees, you ought to be rejoicing in such things as mandatory minimum wage increases, because that means all of those minimum wage workers now have more money to buy your products.  So what if you have to pay more too?  If your labor costs are 1/3 of total expenses, when you have to tack on a 10% raise, you just raise your prices by 3.5% and you actually come out ahead.  All your competition will likewise be raising prices to cover the increased labor costs, and more people will have 10% more disposable income and will probably be buying even more of your products even at the slightly higher prices.

    So there was no need for 'Papa' to be a dick and talk about closing restaurants or firing people.  Just add on that measly 15 cents to the cost and keep quiet.

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