Company flourishes with minimum wage increase

tater

Superstar
Joined
Sep 9, 2013
Messages
6,517
Reputation
2,263
Daps
23,626
So I constantly see companies and business owners complain about the increase in minimum wage and the fear tactics they try and yell at consumers. This company has proven it can work. Now I think $15 may be a bit steep for minimum wage but there should definitely be some type of adjustment. I mean we see the fed wanting to raise interest rates and them touting the lack of inflation like it's a bad thing (hoping it will rise), yet there are numerous opponents to increasing minimum wage.

Anyhoo, :salute: to these people.

2 Years After This Restaurant Started Paying Workers $15 an Hour, Here's What It Looks Like

Here's What's Happening 2 Years After This Restaurant Started Paying Workers $15 an Hour

By Zeeshan Aleem

September 14, 2015


Whenever $15 minimum wage laws have been adopted anywhere in the United States, the increase is followed by a predictable course of events: Low-wage workers cheer, while the industries that employ them jeer, warning that their businesses will suffer.

In cities like Seattle and San Francisco, business interests have rallied against increasing the wage floor to $15, arguing that the hike will be devastating for their companies and force them to fire workers. In New York, leaders in the fast-food industry have vehemently opposed an increase of the sector's minimum wage to $15.

But on the outskirts of Detroit, where the minimum wage is $8.15, one fast-food restaurant has been voluntarily paying its workers $15 an hour for two years, and business is thriving.

Moo Cluck Moo was founded by Brian Parker, Harry Moorhouse and Jimmy Schmidt in the spring of 2013. They initially sought to pay above-average wages, and set their base pay at $12. But a few months later, when they saw the Fight for $15 — the national protest movement for a $15 minimum wage as well as stronger union rights — garnering national attention, the owners decided to bump their pay even higher. Since then, employees at their two restaurants in suburban Detroit have been paid a minimum of $15 an hour.

After they raised their workers' wages, Moo Cluck Moo's business didn't go south. The company didn't lay off workers, make their burgers outrageously expensive or find themselves unable to manage costs. Instead, since the increase, the business has grown steadily while keeping employee turnover low. They're turning a profit and expect to open up new locations as early as next year.

Mjk5YTVkMTBjNCMvMkZIakFhaHhpbkNSTjBsTjJreEFJMW1NZ1BzPS8xN3gzMjY6MTUxOXgxMjEwLzkwMHg1MzAvZmlsdGVyczpxdWFsaXR5KDcwKS9odHRwOi8vczMuYW1hem9uYXdzLmNvbS9wb2xpY3ltaWMtaW1hZ2VzL25qeXltZjF2dTg2OTB2NXlxa29peWRobndkemoxd2RxaXVxOWdpa2s5dm5wMXc0bHNoZ2l4Z295Z3Jwcm15NWwuanBn.jpg

Source: Courtesy of Moo Cluck Moo
The story: The owners of Moo Cluck Moo paid their first employees $12 an hour out of a sense of fairness and to attract employees who would feel invested in the company.

"At the time, we felt it was the right thing to do," co-founder Parker told Mic. "We thought, we don't have to pull every penny of profit out of the till — we can spread the wealth, and share it with the team."

The owners felt the high wage was justified because of the high expectations they have for their employees. At Moo Cluck Moo, all workers are trained to do everything, from preparation to cooking to working the cash register. The skill required to pull it all together is unique for a fast-food restaurant that's expected to whip up meals in minutes. From the gluten-free hamburger buns to the aioli, all ingredients are fresh and made in-house. Parker says the work that goes into crafting high-quality, quickly made healthy food is challenging, and the pay should reflect that.

"If food is so important to us — if it's the most important thing for our survival — then why would we allow ourselves to go into a place where it's being prepared and served by the lowest rung on the ladder, in terms of pay scale?" Parker said.

The Detroit metropolitan area is still reeling from deindustrialization, with one of the worst unemployment rates in the country. That slack in the labor market puts a downward pressure on wages, since desperate workers are not in a position to bargain for higher pay. Employers tend to take advantage of this.

But Parker and his co-founders determined their compensation based on their attitude on the importance of taking both food and workers seriously. When they saw fast-food workers going on strike and protesting for a $15 minimum wage in 2013, they decided that it wouldn't be too much of a stretch to match that. About half a year after launch, they shifted their base pay to $15 an hour.

kvz26d4gzznj66joe1andqltiuwg0cptlqrzbhnp2ww27onphxbmy6hbblffua7p.jpg

Co-founder Brian Parker, second from left, and three Moo Cluck Moo employees
Source: Mic/Courtesy of Moo Cluck Moo
The wage hike didn't force them to lay off workers or increase menu prices. Instead, Parker says that he and his employees have relentlessly focused their attention on maximizing efficiency in everything from food preparation to the way orders are processed. Shaving seconds off the time it takes to make food or tweaking the size of meals to match patterns in customer consumption helps control costs. While their focus on natural food makes the shelf lives of their ingredients far shorter than those of their competitors, it also decreases cooking time.

What it's like for the workers: Ahmed El-Masry, 27, who began working for Moo Cluck Moo when it opened and has worked his way up to become a manager, says the $15 pay tangibly increased his quality of life. Despite having worked for the food industry for years, El-Masry told Mic Moo Cluck Moo's pay increase outpaced his previous income.

"It was much easier to pay my bills," El-Masry said. "And it made it a lot easier to make my girlfriend to nice places, as well as go out with my family."

For some employees, the higher wage has allowed them to think of the job as a pathway to career rather than a temporary way to pay the bills. Maurice Chapman, who has been with the company since the spring of 2014, says the $15 wage floor means he doesn't need to juggle multiple sources of income for the first time since he began working in the food industry.

"On this wage, you can rely on just one paycheck," Chapman told Mic. "I don't have to get a second job."

What it means: Moo Cluck Moo's success at turning a profit while paying high wages might puzzle some of its competitors, but it's not exactly a miracle. There's a great deal of research that shows that increasing pay lowers turnover and boosts productivity and worker satisfaction. That means that higher labor costs are offset by the ability to attract, train and retain higher quality workers, as well as devote fewer resources to training new hires.

It all works out so that Moo Cluck Moo can afford to charge customers reasonable prices for their meals. Their quarter-pound Moo Burger costs $4.79. A Quarter Pounder from a local McDonald's is $3.99 — just $0.80 cheaper.

Moo Cluck Moo is doing well enough that they're talking to investors and looking to expand to new locations in the coming year. Parker says that one thing is mandatory for the new restaurants, wherever they may open: They must pay their workers $15 an hour.
 

At30wecashout

Veteran
Supporter
Joined
Sep 2, 2014
Messages
38,426
Reputation
19,545
Daps
178,890
:salute:As long as businesses factor in long-term employee satisfaction, paying more can work. Lord knows whenever i hit a lick on a low paying job, even if i was putting my ass 100% into the work, i was always thinking about the next step. I left 3 jobs while promotions were on the table, simply because the promotions come with negligible raises, far more responsibility, while another place would pay me more for the same or even less work. The most money i ever made was coming from the easiest 8 hours of sitting on my ass ever. Meanwhile for minimum wage, i would have to deal with customers running their mouths, messes, understaffing, and when i need them most, my hours being cut.

People disagree, but with high wages, folks gotta shyt or get off the pot. On the other hand, if im working my ass off and still struggling to pay bills, why should i go above and beyond? Im looking for that upgrade.
 

tater

Superstar
Joined
Sep 9, 2013
Messages
6,517
Reputation
2,263
Daps
23,626
:salute:As long as businesses factor in long-term employee satisfaction, paying more can work. Lord knows whenever i hit a lick on a low paying job, even if i was putting my ass 100% into the work, i was always thinking about the next step. I left 3 jobs while promotions were on the table, simply because the promotions come with negligible raises, far more responsibility, while another place would pay me more for the same or even less work. The most money i ever made was coming from the easiest 8 hours of sitting on my ass ever. Meanwhile for minimum wage, i would have to deal with customers running their mouths, messes, understaffing, and when i need them most, my hours being cut.

People disagree, but with high wages, folks gotta shyt or get off the pot. On the other hand, if im working my ass off and still struggling to pay bills, why should i go above and beyond? Im looking for that upgrade.


Exactly a lot of money spent in a company is training and attaining new hires. This is a large portion of the budget. Staving off these costs by hiring workers, training them and KEEPING them because you pay them more will cut costs in the long run. You will also attract higher quality workers because they know there is always someone waiting to take their job and they need to stay up to par or they've got to go.
 

At30wecashout

Veteran
Supporter
Joined
Sep 2, 2014
Messages
38,426
Reputation
19,545
Daps
178,890
Exactly a lot of money spent in a company is training and attaining new hires. This is a large portion of the budget. Staving off these costs by hiring workers, training them and KEEPING them because you pay them more will cut costs in the long run. You will also attract higher quality workers because they know there is always someone waiting to take their job and they need to stay up to par or they've got to go.
God:shaq2:You dont have to tell me. My walgreens job: constant turnover, rampant shrink, employees stealing items, new hires calling off a few times during the 90 days :dahell: meanwhile, i was practically being punished for sticking around, cause we were constantly understaffed, while people worked at-will till there next job and just disappeared. A lot of places have that "be lucky you have a job" outlook, but when they are paying damn near nothing, it isnt hard to find something that pays a little bit more. Those background checks and paid trainning sessions are not free. You would think companies would fight to retain talent. Then they wonder why their best talent does a couple years, gets a managers position for 6-8 months, then transfers over to a high paying company that asks less of them. With benefits:mindblown: People say im tripping when i say ive had 15 jobs over the past 2 years, but i was collecting experience from most of them, and upgrading in pay and perks with each one. It isnt smart to be loyal nowadays. You have to go where the winners are as often as you can.
 
Last edited:

Couth

I gave her D she got mad
Joined
Jul 9, 2014
Messages
8,519
Reputation
1,985
Daps
24,950
True. Its has to be adjusted for every market, but anyone paying that far above average will never be short applicants with something to offer.
if they make 15 dollars minimum wage that will be the average. Hilarity will ensue.
 

At30wecashout

Veteran
Supporter
Joined
Sep 2, 2014
Messages
38,426
Reputation
19,545
Daps
178,890
if they make 15 dollars minimum wage that will be the average. Hilarity will ensue.
Average for that company, sure. The only real issue being people wanting to quit jobs that actually benefit the economy simply because a burger joints pays more for what can turn put to be less work. Depends. Its really a strange thing to be that far above market average when you ar simply serving food.
 

tater

Superstar
Joined
Sep 9, 2013
Messages
6,517
Reputation
2,263
Daps
23,626
Average for that company, sure. The only real issue being people wanting to quit jobs that actually benefit the economy simply because a burger joints pays more for what can turn put to be less work. Depends. Its really a strange thing to be that far above market average when you ar simply serving food.

Right. I don't necessarily agree with food service workers being paid this much, unless they're back of house cooking. Front of house workers like a sommelier or something of that nature takes extensive training, so these people also should also garner more wages. Servers and the like IMO, should not be making $15/hr, but I definitely agree with the premise of people making more money in the workforce.
 

Dameon Farrow

Superstar
Joined
Jan 19, 2014
Messages
16,420
Reputation
4,347
Daps
55,330
Exactly a lot of money spent in a company is training and attaining new hires. This is a large portion of the budget. Staving off these costs by hiring workers, training them and KEEPING them because you pay them more will cut costs in the long run. You will also attract higher quality workers because they know there is always someone waiting to take their job and they need to stay up to par or they've got to go.

A lot of businesses have legit lost sight of this. You have to eventually pay a wage that will compete with someone that will give them less hassle for more pay. If you are gonna half ass pay folks when you could be paying them more, don't be surprised if they don't always stick around. Key words are when you could be, of course. Folks got bills to pay. I suggest a side hustle though. Preferably something you really love so it could be an escape for you.
 

Rekkapryde

GT, LWO, 49ERS, BRAVES, HAWKS, N4O...yeah UMAD!
Supporter
Joined
May 1, 2012
Messages
160,710
Reputation
32,535
Daps
545,544
Reppin
TYRONE GA!
A lot of businesses have legit lost sight of this. You have to eventually pay a wage that will compete with someone that will give them less hassle for more pay. If you are gonna half ass pay folks when you could be paying them more, don't be surprised if they don't always stick around. Key words are when you could be, of course. Folks got bills to pay. I suggest a side hustle though. Preferably something you really love so it could be an escape for you.

There are some companies that do understand this. But that is one thing that my old company's HR Manager told me that I'd never forget.
 

Will Ross

Superstar
Bushed
Joined
May 5, 2012
Messages
24,714
Reputation
-6,068
Daps
59,390
The thing is are the hiring a lot of people are relying on a few people?
 

the cac mamba

Banned
Joined
May 21, 2012
Messages
111,880
Reputation
14,215
Daps
317,031
Reppin
NULL
the fact that i see people caping for these rich white republican cocksuckers who hate on min wage increases always has me fukkin weak :dead:

if you're paycheck to paycheck, then every dollar you make is being put right back into the economy :heh: instead of sitting in someones bank account. im not a communist but it should be 10 or 11 bucks and guess what, the fukkin country would be better off
 

wickedsm

Auntie Mozelle
Supporter
Joined
Jul 26, 2015
Messages
14,566
Reputation
12,769
Daps
92,578
Let's not forget the impact of the positive pr.
I would be happy to spend my money with a company that respects and treats their employees well.
I am also positive that this has an absolute positive measurable impact on customer experience .
 
Top