Let's say we raised everybody there to a $15/hr wage.
We'd end up adding $778 to labor for the day.
More than doubling! That sure sounds like a lot!
But hang on a second.
Lemme do some quick back of the envelope math about wages.
On a busy day at the pizza place, we'd have the following crew:
Drivers: $2/hr Tip Wage - 44 man-hours
Insiders: $8/hr - 20 man-hours
Managers: $12/hr - 22 man-hours
For a total of ~$512. Aiming for ~15-20% of sales. /
Let's say we raised everybody there to a $15/hr wage.
We'd end up adding $778 to labor for the day.
More than doubling! That sure sounds like a lot!
But hang on a second.
For 3k, we're selling 300. We've got to divide up that 778 between the pizzas.
That raises the price of each pizza from $10 to $12.59.
"That's... well, not huge, but it's still more money!"
The vast majority of the people we had been selling that pizza to weren't making $15 an hour before. We were in a college town, that manager wage of $12/hour was a /good/ wage. WE were buying that pizza.
The cost of the pizza is lower for a driver.
The driver was probably, with tips, making 10-15/hour, but that depends on how good the night is - some nights, it might not be minimum wage.
So, $7-15/hour. The pizza costs probably more than an hour of work.
Likewise, for the manager, 50 minutes of labor. It's a few seconds more expensive now, but it's still right about ~83% of an hour.
And all for an extra $2.59 per pizza, if the only place we're shunting this cost is direct to the customer.
If we get rid of tips? 20% was pretty standard. So now, it's only .59 more.
