>Mostly, it's labor. Not only does $9.50 hourly, plus tips work out to a fair amount of money for front of house staff (my partner was horrified to learn we could not do a tip credit). But the more the front of house makes, the more our valuable back-of-house staff demands in pay (or tipshare tribute). At a premium, you can't afford to lose your core cook staff, you have no room to negotiate salaries down 'until we get stabilized,' and meanwhile they have three other prime job offers waiting. The labor costs alone were enough to sink us, especially once we got to the taxes.
It is not like overnight the average pay of waiters and kitchen people doubled or increased 50%, more or less that pay has remained the same over two-three years. Either the hourly pay was underestimated or more people were needed than planned.
And the "we could not do a tip credit" coming out as a surprise?
And "surprise", the kitchen brigade wants some money to be on par with the waiters?
And - again "surprise" - you have to pay taxes?
The "unexpectedly expensive renovations"?
Hey, you took months of making business plans, negotiating and what not, no matter how expensive is the renovation it cannot come out "unexpected", you should have put some allowance (10%-20% at least in a project of this kind) for unforeseeable added costs.
Anyway the business plan was "wrong" on the "other" side, the income, simply it could not reach the target, either because it was set too high or because you weren't capable (for whatever reason) to attract enough customers and serve the intended number of meals.
It is not like overnight the average pay of waiters and kitchen people doubled or increased 50%, more or less that pay has remained the same over two-three years. Either the hourly pay was underestimated or more people were needed than planned.
And the "we could not do a tip credit" coming out as a surprise?
Here:
Minimum Wages for Tipped Employees
https://www.dol.gov/whd/state/tipped.htm
2014 9.10 US$
2015 9.25 US$
2016 9.75 US$
2017 9.75 US$
And "surprise", the kitchen brigade wants some money to be on par with the waiters?
And - again "surprise" - you have to pay taxes?
The "unexpectedly expensive renovations"?
Hey, you took months of making business plans, negotiating and what not, no matter how expensive is the renovation it cannot come out "unexpected", you should have put some allowance (10%-20% at least in a project of this kind) for unforeseeable added costs.
Anyway the business plan was "wrong" on the "other" side, the income, simply it could not reach the target, either because it was set too high or because you weren't capable (for whatever reason) to attract enough customers and serve the intended number of meals.