This could be us 24/7 365 but you workers keep playing.
I mean, I’m guessing this is just the gross profits for one day with no factoring in overhead costs, as in insurance, rent, power/water bills, taxes.
Truth is once you factor in all that the pay bump you’d get from collecting profits directly instead of paying your boss isn’t that much. This is a fact that bosses like to exploit, but it ignores a couple of factors. One, that bump is split between a number of people, so the boss is still taking a pretty penny. Two, all that shit I listed above is shitty rent seeking that shouldn’t exist under socialism. Three, at the end of the day socialism isn’t about getting paid more, it’s about worker control of the economy, the workers taking over one business doesn’t mean much if they still pay for rent and groceries to capitalist. If the workers control most/all of the economy the fact you don’t personally take that much in doesn’t matter because you’ll have better
imagine we do the revolution but accidentally let all the landlords keep leeching.
Yep, even a worker owned co-op still has to pay rent to a commercial landlord or at least property taxes for "services"/protection money (cops, and really insurance is this too as you said)
I mean, I’m guessing this is just the gross profits for one day with no factoring in overhead costs, as in insurance, rent, power/water bills, taxes.
If that's the case then it's not the restaurant's profit that was shared, but its revenue.
But yeah, I guess it's not that unlikely that the person who wrote the post used the wrong term. That much surplus value would be insane, especially for a restaurant.
At this particular restaurant, absolutely. I have always been under the impression that margins on small business restaurants are tiny tho so :shrug-outta-hecks:
Small business restaurant owners still do just fucking fine for themselves.
I worked at a thirty person capacity vegan place and the owner took an international trip twice a year. Those were good times cause it meant she wasn't at the restaurant but then she'd act like she was one of us when it was convenient.
The tough part is you still need startup capital, plus you need organized workers prior to there even being a workplace.
Say it costs $100K to open a pizza place (this is probably low-balling it for many places). How easy is it to organize 20 pizza workers who can each chip in $5K?
There's operating costs as well like power and food cost and stuff, so closer to 40-50 an hour, which is disgusting as well.
$3-4 per slice, like maybe $20 per pie, and dinner orders, they probably get a lot of business. Sounds pretty typical for a pizzeria in a good location
I guess it could be a busy night too. Forgot that profits aren't fixed. Throw tips on that and I can see it.
I don't know, i mean, unlike your average small bussiness tyrant this fucker clearly 100% knows what he's doing. If anything he gets an extra day.
There's something to appreciate about someone actually knowing what is going on and what they are doing.
Restaurants always say that but that's cus they don't include owner salaries & bonuses, high management salaries & bonuses, marketing, and expansion expenses.
Ah, with salaries/amortization true, but bonuses would be exactly profit margins I assume, or do they keep cash in restaurants name?
From what I remember (i had a neighbor who was a former high level manager at a restaurant) they'll basically run at 3% profit to account for slow periods/off seasons but anything above that gets pumped into expansion to new locations or bonuses for people high up in the groups.
So if they made like a 3% profit margin + $1m they'll divide up that $1m into bonuses for people high up in the company.
I hope that makes sense.
Edit: also "business trips" to somewhere nice on the company dime where they just go eat and drink at a bunch of different restaurants.
they just go eat and drink at a bunch of different restaurants.
and it's deductible "market research" so it also lowers the company's tax bill
Restaurants still deal with a lot of cash transactions, so a good portion of that can go right under the table or into the owner's pocket so legal cash remains under the restaurant. Losses can be juked easy too cause it's hard to verify what food is sold and what sits and goes bad. A lot also scam grants and shit to get started.
If you put more profit on paper, you pay more in taxes. Of course they're going to operate such that their books come out to only a small margin.
Every small restaurant cooks the books fucking hard. Source: I've worked in small restaurants for a decade
Especially if you still have a significant amount of customers still paying cash.
Not like anyone was going to but I've had several owners make sure no one declared their tips come tax time
(For anyone who doesn't know, this lets the business report pay less in taxes, too.)
No restaurant profits are super high because all the food is bought in bulk
Yeah, aside from dry goods the price difference for bulk food isn't that great unless you have way more fridge/freezer space than any restaurant. You don't hit good bulk deals until you're like, grocery store level
Thread is full of people who don't know what they're talking about.
Yeah, most small restaurants that last a couple years have owner that is making a pretty solid living off it and absolutely none were poor to start with. You have to be prepared to hemorrhage money for the first year or so if you want any hope. Regardless they don't deserve any sympathy. A capitalist who fails is still a capitalist.
A capitalist who fails is someone who needs to GET A JOB, SLACKER :hahaha:
You asking journalist to use the correct words for things? That's kinda delusional
lol no, I'm telling everyone else to stop taking precise meaning from headlines especially.
I'm not sure, but I'd say they vary an awful lot. Like a "small restaurant" with 25 employees in the middle of a big city with enough starting capital to buy ingredients in bulk and the best equipment would probably make this kind of margin, but ones with 5 employees and little or no capital might be more around that.
This is just gross sales and tips, not profit. Never, ever read a headline for literal, precise meaning.
https://www.wkyc.com/article/news/local/findlay-pizzeria-owner-gives-entire-day-of-profits-to-employees-to-show-his-appreciation/512-5fa193d2-b88a-44ea-9351-b61af44c35f8
That's what the owners will tell you.
Those poor, squeezed restaurant owners.
But but but, uhhh, RESTAURANTS RUN ON RAZOR-THIN PROFIT MARGINS
Aw shit, uhh PIZZAS WILL COST $50 IF WE RAISE THE MINIMUM WAGE $1
Given the absolute shit state of 1.) journalism and 2.) financial education in the US, I wouldn't be surprised to learn that this isn't a distribution of profits but of gross revenue.
edit: yep.
You're right, profit sharing wouldn't yield $78/hour, but it'd still be a hell of a lot more than what restaurant workers are paid now.
Pizza places have better margins than most restaurants but the point still totally stands. I would start a co-op pizza place in a heartbeat.
Anyone want to start a co-op pizza place? lol
yes
Domus Gaius. Specialty pizzas named the Bordiga, the Malatesta, the Togliatti...
holy fucking shit lmao and this is just profits, not revenue. insane to think about.
It is in fact revenue. $6300 in menu prices and $1200 in tips, 220 orders across a little less than 100 labor hours in a day.
