A Minnesota Restaurant Is Putting The Cost Of A Minimum Wage Increase On Customer Checks

[ErikJ]

Last edited Thu Aug 7, 2014, 02:40 AM - Edit history (1)

A Minnesota restaurant has started charging a fee to offset a minimum wage hike.
The Oasis cafe in Stillwater is charging customers an extra 35 cents, reports CBS Minnesota.

Minnesota recently raised the minimum wage for tipped employees. Oasis told CBS that the change would cost the restaurant about $10,000 a year.

Patrons of the restaurant are complaining on its Facebook page.

"If you cannot afford to pay your employees, maybe you cannot afford to run a restaurant," one man who identified himself as a former customer said.

Numerous people called for a boycott.

"You're essentially blaming customers for the increase when you charge for it the way you do," one Facebook commenter wrote.

Eater points out that restaurants have also implemented fees to cover increased healthcare costs.

One Florida restaurant started charging an additional 1% this year.

Here's a receipt with the surcharge, via local news station WCCO.



Read more: http://www.businessinsider.com/restaurant-charges-minimum-wage-fee-2014-8#ixzz39gM8oGfH

[TreasonousBastard]

1. It just seems so chickenshit...

Rent, taxes, the price of potatoes... Everything goes up and sometimes you have to raise prices to make it worth while staying in business.

But this just seems so childish, churlish, and just plain chickenshit whining.

[CatWoman]

56. I read comments on their FB page

and that restaurant is in Michelle Bachmann's district.

[bluestateguy]

2. They're just having politically motivated temper tantrum

So just like a child having a tantrum, sometimes you just have to let it run its course.

[TDale313]

3. Oh, poor baby.

Ya might actually have to pay your employees a bit more. Not an actual living wage or even a reasonable COLA, but an extra dollar or two an hour. So you're gonna piss off your customers and let the whole world know what an asshole you are because "Wahh!!! Not fair!!!" Well, screw you.

[gerogie2]

4. How to lose customers

Many years ago I worked at a private Industrial Electric supplier and there was some $1k per year city tax added. The owner, a multi-millionaire, decided to put a $1 charge on each sale to pay for the tax. That lasted about two weeks because all the electrical contractors were b*tching about the charge. The business cleared $60k+ per month in profit.

[Journeyman]

5. Is that all? 35 cents? Wouldn't be much more to give them a living wage, then, would it?. . .

Maybe another dollar?

So instead of tipping twice the tax, we all pay another buck or so and the workers are assured a living wage? Who could be against this idea? . . .

[CBGLuthier]

16. I would expect a business to increase their prices to cover the expense

but to spell it out as a fee and focus on the reason is a dick move. Just raise the price of a few items by a small amount like hyou do whenever anything gets more expensive including labor costs.

In the social media age doing shit like this will kill your company as they will soon find out. The Oasis will be drying up.

[yeoman6987]

41. Not a great move

But hopefully the workers begin to look for other jobs. They will be the losers in this again. Nobody ever thinks about the workers in these boycotts.

[Jeff In Milwaukee]

17. I'm sort of thinking the same thing...

This might be a good idea to show customers who little it costs to pay your server a better wage.

$0.35 on a $21 check is sort of...meh

[kysrsoze]

54. $.35 seems like a bargain to me. No big deal.

[dballance]

6. For a place that charges $8 for a bacon cheesburger that seems silly.

Idiots. They don't realize how they are reenforcing the fact that paying people a minimum wage is not all that expensive. Thirty-five cents on an eight dollar burger is chump change.

[WhollyHeretic]

25. It's even sillier than that. It's an extra 35 cents on a $21 bill.

[dballance]

60. Exactly! If it were .35 on a check of a dollar or two I could see getting upset.

.35 on a check of $21 is not even something anyone who can afford and $8 burger will notice.

[msongs]

7. bacon cheeseburger and waffle fries? doesn't sound like a healthy restaurant nt

[Sherman A1]

8. A good way to tick off the customers

my local auto repair shop has a sign that due to the increases of health care he will be raising his labor prices. I was talking to him when his bill came in for health insurance and he said it went up 25%.

[dembotoz]

9. love it when a business goes out of its way to tell me not to shop there

[mmonk]

27. +1

[madokie]

10. By doing so they show that it actually doesn't cost them that much

sorry bastids ought to be boycotted for not paying a better wage on their own accord without having to be forced too. Then they come out with a hissy fit, f* 'm

[Cerridwen]

11. line 13; form 1120 - line 8; form 1120S - deductions; wages

Form 1120 - http://www.irs.gov/pub/irs-pdf/f1120.pdf

Line 13; Deductions against taxable income (of an incorporated C corp), Salaries and wages

Form 1120S - http://www.irs.gov/pub/irs-pdf/f1120s.pdf

Line 8; Deductions against taxable income (of an incorporated S corp), Salaries and wages

This is by needs, an extremely simplistic response to a business owner who is lying or is amazingly ignorant of tax law and definitely needs a new CPA who understands business taxes. If they are not incorporated (C, S or LLC) they are especially stupid.

It would appear that the more they pay in wages and salaries, the more they are able to deduct against their taxable income. In short, if done correctly, it would be a wash.

The same can be said for health care costs as those are on line 24, form 1120; Employee Benefit Programs and line 18, form 1120S; Employee Benefit programs also under Deductions against taxable income.

Now, as I noted above, this is simplistic to the extreme. Decades of congresses playing havoc with US tax code has created 10s of thousands of pages of code that is so byzantine the Byzantines would be speechless. However, it's also true that a talented and experienced CPA who specializes in taxes could ensure higher wages (or higher payments toward health care/insurance) would do little if any damage to their "bottom line." Wages and salaries are considered "the cost of doing business."

Perhaps the business owner(s) needs to take up another hobby. Running a business appears to be beyond their, uh, skill set.

[dsc]

13. in fairness that presumes the business makes enough profit to get the full write off

but if they don't then they aren't paying any income taxes at all.

[Cerridwen]

14. "...if they don't (make enough profit) then they aren't paying any taxes at all."

Then they are still lying that a wage increase negatively effects their "bottom line," that is, their tax bill.

That was part of why I said, "This is by needs, an extremely simplistic..." and "Now, as I noted above, this is simplistic to the extreme."

It would be possible but horrifically complex and long to write all the exceptions and permutations regarding tax requirements, policies, and laws under which businesses operate. It would also require access to the business' financials and tax returns. You'll notice I also didn't include information about state and local taxes that may apply to this business. Nor did I discuss depreciation, lease/rental, equipment, etc.

I see an opportunity here for a CPA to recruit a new client as this business owner(s) appears to be ignorant of even the basics of tax law.

[joeglow3]

35. I am a tax CPA and can't follow what you are saying

Even if a company is operating at a tax loss, they can still be cash flow positive due to non-cash expenses like depreciation/amortization. However, an increased cash expense may not affect your tax bill in this instance, but it still affects your cash flows.

[B Calm]

12. I stopped eating at a local restaurant when they displayed a picture of George W Bush dancing

with his wife at his inaugural ball.

This is worse!

[joeglow3]

36. Wow. Must sucks to immediately cut out 50% of all businesses out there

Do you dump friends just as easily? Do you quit jobs as quickly?

Now, if I see proof they are contributing to causes I oppose, I would consider taking my business, but if I find a restaurant with great food, great prices, great owners and great employees, I am not going to dump them over a picture.

[B Calm]

39. LOL. Do you shop at Hobby Lobby?

[joeglow3]

40. LOL. Did they just put up a picture of Bush dancing with his wife and nothing else?

[B Calm]

43. You have to remember, this was just after Bush and the Supreme Court stole the election.

[Justice]

15. Should just have adjusted prices - never good to show it as a separate fee

[99Forever]

18. Guess what The Oasis cafe in Stillwater.

We live in the area and eat out often. Guess where we will NEVER go to eat.

Fucking brilliant advertising plan you've got there.

[MineralMan]

19. That's a political statement on that receipt. It's also one that

will tell a helluva lot of their customers that the owners are assholes. It's not good to let your customers know you're an asshole. They might decide to patronize the restaurant down the street. I know I would.

[Nye Bevan]

20. Why not just increase the prices of the menu items a little?

That would raise the money needed without provoking a backlash.

[mercuryblues]

21. then they

would have to pay for new menus.

Cheap and stooped. owners.

[Nye Bevan]

22. Ah, didn't think of that. Tightwads (nt)

[mercuryblues]

24. the

crazy part is that menu items would only have to go up a .01 to .05 cents to cover the cost of the raise. Which in turn would also raise the tip a little bit.

But no. These owners are actually trying to screw their employees with this ploy. They may get an hourly raise, but their tips will not increase because he is basically saying it is a type of tax.

[joeglow3]

37. I can understand not wanting to incur thousands of dollars to print new menus

This is why restaurants try not to increase prices all the time.

That said, his "fee" is income regardless of how he wants to classify it. It appears he is not including this in the amount subject to sales tax. He may have an issue with a state auditor when they come in.

[Springslips]

45. If they can't manage a ever changing menu.

They have no business running a restaurant. You have to change menu all the time. There's the changing cost of food, the adding or deleting of dishes, and specials that change weekly. If you are too slow for shinny new menus all the time, you can easily get away with a folder design that holds printed pages. Changing that would cost pennies. Menu changes-- go to a PC, edit your word doc, print, presto.

Some business' fail not because of government or min wage, but simple because the owner is bad at business.

[randome]

23. No class at all. Like most whiny Conservatives, they can't keep up with the rest of the world.

[hr][font color="blue"][center]A ton of bricks, a ton of feathers, it's still gonna hurt.[/center][/font][hr]

[Yavin4]

26. Why don't we just bring back slavery

Why pay people anything at all. People should be forced to work for free forever. It's a honor and privilege to serve the wonderful job creators.

[MohRokTah]

28. Minnesota State Sales Tax agents need to investigate this restaurant.

They are not taxing the fee, meaning that is goods or services going untaxed.

The restaurant is a sales tax cheat.

[joeglow3]

38. Ha. I just said the same thing above

Good eye.

[BillZBubb]

29. Boycott time!

[Fla Dem]

30. They could raise all their prices by 15 cents and easily cover the increase.

So the average bill; drink, sandwich, side would generate the 45 cents to cover the increase in wages. Much ado about nothing, Simply RW, (we hate the black guy in the Whitehouse) shenanigans.

[Brigid]

31. Minnesota restaurant will soon go out of business.

Stupid, churlish act.

[B Calm]

32. EIGHT BUCKS for a Bacon Cheeseburger. How much damn profit is that!

[Brigid]

34. Wow. I hadn't looked at the prices for the food items.

Eight bucks for a bacon cheesburger?

[oldhippie]

42. How much is their building rent?

Electricity? Water? City taxes? Other expenses? Cost of materials? Insurance?

What IS their profit on a bacon cheeseburger?

[B Calm]

44. That's why I asked how much profit.

DUH!

[oldhippie]

50. How much ...

.... damn profit. Profit is evil. Profit is to be damned.

[B Calm]

51. LOL

[L0oniX]

33. ...and print the owners net worth too. Show a pic of the owners car and home too....

and maybe the pool, boat, private school, golf club membership card, etc.

[cbdo2007]

55. LOL, I love how all business owners are stereotyped here as being super rich.

I know plenty of people who own small businesses and very few of them are rich, especially not restaurant owners.

[B Calm]

58. Do they put the cost of minimum wage increase on customers checks?

[B Calm]

61. I love how business owners stereotype the minimum wage working poor as high school students

working their first job.

[Capt. Obvious]

46. Deju vu

Didn't we have this thread month(s) ago?

[joeybee12]

47. If it's not printed or noted anywhere so the guests are made aware of this...

Refuse to pay...and sue the bastards.

[old guy]

48. It's a crappy joint and their prices have always been high for food that is nothing special.

[Xyzse]

49. Why the F, does a restaurant even put that as part of a receipt?

All it does is show how much of a whiny, greed, @ss, basserd that restaurant is.

Just raise the prices, as needed, don't need to denote what it was for.

Dumb.

[Uben]

52. My current boycott list

Red Lobster, Olive Garden, McDonalds, SubWay, and Applebee's.

I don't even remember why I'm boycotting some of them, I just know they did something I disagreed with at some time and I vowed to never eat there again. Its all they understand.

I'm also boycotting Walmart because the cheap assed Walton's make US subsidize THEIR WORKERS! Talk about American traitors! They shouldn't even be allowed to do business in America! Capitalist scum! When the pitchforks come out, the Waltons will be running in fear.

[Bettie]

53. 35 cents is a pretty small amount to pay...they're pointing out their own pettiness

What is wrong with people? I hate the "I've got mine now screw you" attitude so many seem to have these days.

Then again, I always, according to my few republican friends, over tip. There is one couple I have to ensure leave the restaurant before me or they will take some of my tip and pocket it because they don't think servers deserve good tips.

We don't go out with them much, but once in a while, they are in a group that we are in.

[Orsino]

57. Childish. n/t

[ck4829]

59. How are they going to offset that Waahmbulance Fee?