This doesn't really address your question, but it's related to the minimum wage job issue.
To give you an idea of why restaurant jobs tend to have low pay. The answer is profit margins. New laws trying to raise the minimum wage in CA hit these low profit margin businesses hardest. In places like San Diego, CA restaurants have been passing the new higher minimum wage on to consumers. This has really outraged a lot of progressives who want those "fat cat" business owners to take it out of their big profits.
The math of this.
"With all the new California higher minimum wage requirements kicking with the start of the New Year, many Democrats are outraged that restaurants are passing those costs on to customers, sometimes tacking on a 3% labor charge on the bill -- a charge that is rapidly catching on in the city of San Diego, to pay the city's new higher city minimum wage. San Diego now has a $11.50 minimum wage -- the minimum in the Golden State is now at least $10.50. More such mandatory raises are scheduled in coming years....
-- http://www.sandiegouniontribune.com/…/sd-fi-restaurants-min… ).
Liberals insist that owners should pay these higher costs out of their huge business profits.
So I have a question for my readers..:
"On a dollar's worth of sales in a full service restaurant, what percent of a restaurant bill (ignoring the sales tax) is profit to the greedy owners?"
Silly question, of course....I'll provide the answer: Less than 4% is profit -- ignoring the 60% of restaurants that fail within 3 years.
To be specific from the article below: "Full-Service Restaurants at all levels spent about 32 percent of each dollar on the cost of food and beverages, 33 percent on salaries and wages, and from 5 percent to 6 percent on restaurant occupancy costs. Profit margins, however, varied according to the cost of the average check per person. Those with checks under $15 showed a profit of 3 percent. Those with checks from $15 to $24.99 boasted the highest profit margin at 3.5 percent. Finally, those with checks of $25 and over had the lowest profits, at 1.8 percent."
FOLLOW UP QUESTION: "If the 3% wage increase is NOT cranked into the customer's bill, how much profit will the owners get then?" (Wait patiently for their answer. Could be a long wait, I admit.)
EXTRA CREDIT QUESTION: "If the higher labor cost is not passed through to customers -- or the workers are not replaced by automation -- and given that the owners would thus no longer make ANY profit --how long will the restaurants remain in business?" - Quote from Richard Rider