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Inflation or Deflation ahead?

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  1. #131

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    Quote Originally Posted by Skyhook:
    Been reading various articles about city's that have had substantial property price increases over the past decade. Seems now, young people that used to be employed in said CBD to serve coffee/food etc of said city's, just aren't applying for jobs there due to the fact that they cannot afford the rents asked to be able to live close to work/locally.

    Be it, NYC, Melbourne, Sydney or Sanfrancisco, the F&B industry is now suffering a staff shortage. A few things are responsible for this, low wages in the USA and the casualisation of staff here in Australia, that never gives them enough to actually save any money or any feeling of job secure permanency.
    The business model of the F&B industry is completely out of whack in the U.S. Servers have to tolerate arsehole customers because they depend on tips to actually earn any sort of money. The cooks and other "back of the house" workers don't get to share in the tips and are underpaid. Customers complain about paying $8 for coffee drinks and $15 for avocado toast. Restaurants had an extraordinarily high rate of failure even before the pandemic. Most surviving restaurants are just barely making money. It's hard to find an economic winner in this business model.
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  2. #132

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    Quote Originally Posted by huja:
    The business model of the F&B industry is completely out of whack in the U.S. Servers have to tolerate arsehole customers because they depend on tips to actually earn any sort of money. The cooks and other "back of the house" workers don't get to share in the tips and are underpaid. Customers complain about paying $8 for coffee drinks and $15 for avocado toast. Restaurants had an extraordinarily high rate of failure even before the pandemic. Most surviving restaurants are just barely making money. It's hard to find an economic winner in this business model.
    I worked in bars during Uni. The "back of the house" gets a fixed % of the gross sales per day. But the % comes out of the waiter/waitresses/bartenders tip. So if the server takes the excess of that house cut. (ie. server made average of 18% tip, house gets 2% fixed. Her net tip is 16%).

    I made hella good money bartending at 18-22. Tax free (shhh).
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  3. #133

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    Quote Originally Posted by D.YU:
    I worked in bars during Uni. The "back of the house" gets a fixed % of the gross sales per day. But the % comes out of the waiter/waitresses/bartenders tip. So if the server takes the excess of that house cut. (ie. server made average of 18% tip, house gets 2% fixed. Her net tip is 16%).

    I made hella good money bartending at 18-22. Tax free (shhh).
    I can assure you few if any back of the house restaurant works get a % of gross sales. In a few cases tips are pooled from front-of-house workers and distributed to everyone (that isn't management) at the end of the night. The mark-up for booze is a beautiful thing for the F&B industry.

  4. #134

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    Quote Originally Posted by huja:
    I can assure you few if any back of the house restaurant works get a % of gross sales. In a a few cases tips are pooled and distributed at the end of the night. The mark-up for booze is a beautiful thing for the F&B industry.
    Most of the places I worked at had fair house rules for kitchen/back staff. Not sure if this is applicable to USA.

    I recall making average 300CAD a shift up after giving my cut back to the house/assistants. At the peak (in clubs fridays/saturdays only), I made 500CAD net after giving house 1-200.

    Thinking back, those were the days! Making 3-5K CAD a month (tax free) as a young Uni student. To make 5k/month NET salary in Canada after tax, you would need to making 8-9k/month on paper.
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  5. #135

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    Most of the places I worked at had fair house rules for kitchen/back staff. Not sure if this is applicable to USA.
    Does Canada have something like the UK TRONC thingy?

  6. #136

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    Quote Originally Posted by shri:
    Does Canada have something like the UK TRONC thingy?
    No idea what that is...

    In Canada, its not a legal requirement to share tip/cut to the house or kitchen staff. But I think most places have their own rules.

    Also, servers/bartenders will ALWAYS tip the kitchen even if there are no house rules. This is because we get hungry and want free food lol.

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  8. #138

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    Quote Originally Posted by huja:
    On the other side of COVID-19, do you foresee inflation or deflation? Several friends went with inflation without much thought . . . .

    In 2019, the year before covid-19 emerged, the average month-on-month increase in consumer prices in America was 0.2%. That was marginally lower over the course of 2020, when activity briefly shuddered to a halt and then roared back to life. But in 2021, as the recovery gained altitude, prices shot up by an average of 0.6% month-on-month.
    https://www.economist.com/finance-an...OWl2qFO3kmpiPI

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  10. #140

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    Speaking of pay raises...

    I suspect many of the employees are also compensated in stock which is outperforming inflation.


    Wagner did hint that the company’s compensation budgets “reflected” the higher cost of labor that comes with increased prices, according to CNBC. However, he said that the company would rather pay any increased wages based on performance rather than do an increase across the board.

    The Verge: Google tells employees it won't raise everyone's wages to keep up with inflation.
    https://www.theverge.com/2021/12/10/...record-profits

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