Shake Shack to shut 6 California locations, including 5 in LA, Blame state’s $20 minimum wage hike

[Redwood]

Happened here in Houston in the Montrose area

 

[RageKage]

That's fine, they left the FREE market open for someone who can, fyi, robots and AI aren't what's hot in the restaurant industry despite what these businesses and Republicans against a living wage claim. Ppl detest grocery store checkout, think they will go for food prep automation en masse now?

 

[IIVI]

In N' Out >

In N' Out also been paying fast food workers high wages for decades.

You can't compare the amount of traffic any burger place gets to In N' Out here.

 

[BaggerofTea]

how do they deduce "under performing"

this is why ideologies like anarcho syndicalism exist

 

[Apollo Creed]

In N' Out >

In N' Out also been paying fast food workers high wages for decades.

You can't compare the amount of traffic any burger place gets to In N' Out here.

they also aren't doing global expansion so can't compare.

 

[Deltron]

well In N Out has 0 lines now at their main location in Oakland as they also closed this year

still crazy that's the only in-n-out to ever close down.

there's an in-n-out near my area and it stays busy

 

[Ghost Utmost]

Y'all realize $20 is damn near minimum wage now in most states anyway?

CA and NY are the most expensive states in the country. If $20 is barely making it in TN or SC.. that shyt will never make it in NY or CA.

I don't necessarily believe in a $20 min wage cause entry level fast food jobs are not really meant to raise a fam on. If a full grown adult needs a living wage from Wendy's.. they become a manager and put in 20 hrs of overtime per week to keep their household together.

Entry level menial jobs are for hs or college kids or if you're retired and just need a supplement to your pension and social security.

Anyway.

$20 in CA is like $10 in MS.

 

[Professor Emeritus]

well if they have just say 6 employees per day (probably more) at an average of $25 per hour (managers, shift leaders and assistant managers probably get paid more than the $20 a hour minimum wage that standard employees get), and open 10 hours a day - thats $1,500 per day on employees alone. Not including rent ($20-50k per month, lets just call it $30k per month) - thats another $1k a day, plus PG&E another $3000 per month, business liability insurance another $1500-3000 a month, materials/cost of goods, paying someone if something breaks, terminal/pos service fees

theyre probably looking at around $3-5k a day minimum, per day, per location to operate in LA

how much do you think fries should be knowing this now ?

So all that math to say they need just 20-25 individual customers an hour to break even? Or about 10 orders for 2-3 people each?

They made 20% profit margin on their sales last year, $200 million in profits on $1 billion in revenue.

 

[Wild self]

Just the beginning. If you think you deserve $20 an hour to flip a frozen meat patty on a dirty grill then bless your natural heart.

McDonalds workers in all 50 states are making close to $20 now, in 2024

 

[Wild self]

So all that math to say they need just 20-25 individual customers an hour to break even? Or about 10 orders for 2-3 people each?

They made 20% profit margin on their sales last year, $200 million in profits on $1 billion in revenue.

Don't let dude con you into thinking that greed is good. He is a corporate bootlicker that said that it is OK to wipe off feces from Harvey Weinstein as long as it provided a future opportunity.

 

[itsyoung!!]

but they also have a responsibility to pay their workers a wage that reflects the cost of living.

says who?

Fast food companies make billions in profit,

Shake Shack doesnt make millions. We are discussing shake shack. Theres also a record of stores, including fast food places closing down at rapid rates.

It's not about making zero jobs; it's about making sure the jobs that do exist aren't leaving people in poverty.

My first job was when I was 14 or 15 and I worked at Jack In The Box for $6 a hour... this was around 20 years ago. Its gone from $6 to $20. I went from Jack In The Box, to Mervyns, to Champs Sports to AT&T and to a banker at Chase All by the age of 25 youngest banker in the area and now, 14 years in, a successful business owner. I havnt clocked into a job since early 2013 and ive lived hell of a life

issue is kids/lazy people dont want to do this process anymore.

I still see hiring signs every business, other businesses closing down. This is not about wages from the employee perspective, this is laziness and unrealistic expectations.

One is necessary for a healthy society, while the other is a detriment to it.

Many would argue that society was healthier when we didnt cater to the lowest dominators of idiots who believe that fast food should be a livable wage job. Before social media, there wasnt this big push for high min wages, people knew these were starter jobs or jobs to fill inbetween while you looked for an actual career. No society in history has ever thrived worrying about the bottom. Druggies, junkies, lazy people, catering to this only leading to where we are at today.


Keep in mind the $20 isnt just for fast food restaurant workers. This applied to all service based employees, including clubs, bars, etc.

 

[Wild self]

says who?

Shake Shack doesnt make millions. We are discussing shake shack. Theres also a record of stores, including fast food places closing down at rapid rates.


My first job was when I was 14 or 15 and I worked at Jack In The Box for $6 a hour... this was around 20 years ago. Its gone from $6 to $20. I went from Jack In The Box, to Mervyns, to Champs Sports to AT&T and to a banker at Chase All by the age of 25 youngest banker in the area and now, 14 years in, a successful business owner. I havnt clocked into a job since early 2013 and ive lived hell of a life

issue is kids/lazy people dont want to do this process anymore.

I still see hiring signs every business, other businesses closing down. This is not about wages from the employee perspective, this is laziness and unrealistic expectations.

Many would argue that society was healthier when we didnt cater to the lowest dominators of idiots who believe that fast food should be a livable wage job. Before social media, there wasnt this big push for high min wages, people knew these were starter jobs or jobs to fill inbetween while you looked for an actual career. No society in history has ever thrived worrying about the bottom. Druggies, junkies, lazy people, catering to this only leading to where we are at today.


Keep in mind the $20 isnt just for fast food restaurant workers. This applied to all service based employees, including clubs, bars, etc.

Good for you

You seem to forget the thousands of other hard workers like yourself that never gotten their big break, who essential died or disappeared in uncharted capitalism. Bootstraps BS led to the death of more workers than you dare to care about.

 

[itsyoung!!]

So all that math to say they need just 20-25 individual customers an hour to break even? Or about 10 orders for 2-3 people each?

They made 20% profit margin on their sales last year, $200 million in profits on $1 billion in revenue.

20% profit margin, majority im guessing from their locations outside of California, correct? 20-25 individual customers a hour is crazy to expect 7 days a week, 365 days a year. Ive worked fast food when I was a teenager, near a damn freeway in CALIFORNIA and their be entire hours we saw 0 people walk in. This was Jack In The Box. Theres slow times of business and busy times of business, the issue is when the busy times arent reliable then your margin is fukked because those bills are still going to hit.

Don't let dude con you into thinking that greed is good. He is a corporate bootlicker that said that it is OK to wipe off feces from Harvey Weinstein as long as it provided a future opportunity.

Harvey Weinstein is a piece of shyt I never said that I also think most girls was consent in his degenerate ways though but if hes guilty of worse then let him rot in jail

 

[itsyoung!!]

You seem to forget the thousands of other hard workers like yourself that never gotten their big break,

My big break was walking around with my resume and dropping it off to managers, even if they said apply online id still shake their hands and made sure they got my resume. Who knew being dedicated to improving your life would be considered a big break

I came from nothing. You probably came from a good upbringing, from everything I see you post, you just a lazy mafukka

 

[West Coast Avenger]

Ppl check for SS like that? I though I&O had a stranglehold in Cali?

It still does....you don't see the same lines at shake shack as you do at Inn & Out....