CHARLES: ANOTHER SPINOFF.
STUART: A SPINOFF OF FIVE.
WATCH OUT, ASHLEY.
THIS -- RESTAURANT IN NEW YORK
CITY WANT TO ADD A SURCHARGE.
BUSINESS OWNERS SAY THEY ARE
GETTING KILLED BY AN INCREASE
IN THE MINIMUM WAGE, THEY ARE
OUT OF BUSINESS WITHOUT A
SURCHARGE.
THE CEO OF APPLE METRO RUNS I
DON'T KNOW HOW MANY APPLEBEE'S.
DO YOU NEED A SURCHARGE?
>> NOT SURE A SURCHARGE WORKS
BECAUSE THE CONSUMER IS ALREADY
CEILING WITH REGARD TO THE FOOD
INDUSTRY, ALL THE OTHER NEW
ENTRANTS, PREPARED FOODS AT
SUPERMARKETS ETC. FOOD
COMPANIES THAT SEND YOU FOOD
YOU NEED TO PREPARE QUICKLY AND
ALREADY SEPARATING OURSELVES
FROM GROCERY STORES AND OTHER
PREPARED FOOD ENTRIES INTO THE
FOOD INDUSTRY AND IF THAT
SEPARATION GETS GREATER AND
GREATER WE INCENTIVE PEOPLE NOT
TO GO INTO RESTAURANTS.
HAVING SAID THAT, IT IS A
DESPERATION MOVE BECAUSE OF THE
ADMINISTRATION HERE AND IN NEW
YORK AND THE STATE.
STUART: IS THE HIGHER MINIMUM
WAGE AND OTHER RESTRICTIONS
IMPOSED, IS IT THAT BAD THAT IT
COULD DRIVE SOME RESTAURANTS
FLAT OUT OF BUSINESS?
>> I THOUGHT ABOUT COMING ON, I
KNEW THE SUBJECT, DON'T WANT TO
SELLECK A BUSINESSMAN THAT IS
HARPING AND WRAPPING ABOUT
LABOR ETC. ETC..
IT IS WORSE THAN THAT BAD.
IT IS WORSE THAN THAT BAD AND
HE WAS WHITE IS WORSE THAN THAT
BAD.
MINIMUM WAGE WAS, WENT UP TO
$11 AN HOUR.
TWO YEARS LATER, LABOR WILL
HAVE HIT MINIMUM WAGE IN THE
FOOD INDUSTRY AT $15 AN HOUR.
IT IS APPROXIMATELY 40%, 38%.
I AM OFF A LITTLE BIT, 38%.
WE ARE IN THE WORLD CAN ANYONE
WITHSTAND A 30% INCREASE IN
LABOR IN A TWO YEAR. GO OF TIME
AND SURVIVE.
STUART: IF IT IS COMMON TO ALL
RESTAURANTS IN THE CITY WHY
DON'T THEY ALL RAISE PRICES BY
WHATEVER PERCENTAGE THEY HAVE
TO RAISE THEM?
>> THE CONSUMER IS ALREADY
BANGING HIS OR HER HEAD ON THE
CEILING WITH REGARD TO WHAT IS
GOING OUT, WHATEVER THE
EXPERIENCE IS.
THE CASUAL BUSINESS, A
TRADITION IN OUR SPACE, THE
CASUAL DINING SPACE, THAT WAS
THE REFLEX.
YOU HAVE AN INCREASE IN
COMMODITIES, INCREASING LABOR,
YOU RAISE THE PRICES.
AT THIS LEVEL, AT THIS STAGE,
WE ARE IN A SPACE THAT IS VERY
DELICATE IN TERMS OF BALANCE.
WE SPEND IN ORDER KNOW IT MEANT
AMOUNT OF TIME DECIDING ON 1%
OR 2% INCREASE, A VERY THIN
MARGIN BUSINESS AND PEOPLE
DON'T RECOGNIZE THAT.
WHEN PEOPLE SAY IN APPLE STORES
WE WILL PAY $15, THEY ARE
SELLING A HIGH TICKET ITEM WITH
A HUGE MARGIN.
THEY ARE SELLING THOSE ANIMAL
WAGE PEOPLE SELLING AN IPHONE
FOR $1000, WE SELL A MEAL FOR
$15.
OUR MARGINS ARE PAPERTHIN.
FOR US TO RAISE LABOR IN TERMS
OF THESE KINDS OF INCREASES WE
DON'T HAVE THAT.
FOR AN APPLE STORE TO RAISE
$1000 PHONES, $15 OR $20 THEY
SHOULD PAY THEM $30 AN HOUR.
STUART: WE UNDERSTAND THE
PROBLEM AND THANKS FOR TELLING
US ABOUT IT.
I WANT TO TELL OUR VIEWERS THAT
ON FRIDAY WE WILL TALK TO THE
TWO GENTLEMEN WHO ARE
RESTAURANT OWNERS IN NEW YORK
WHO SUPPORT SURCHARGES, THEY
SAY THEY ARE READY HAD TO CLOSE
TWO OF THEIR LOCATIONS BECAUSE
OF THE HIGHER MINIMUM WAGE
ALREADY IMPOSED AND MORE
COMING.
>> THERE ARE RESTAURANTS
CLOSING LEFT AND RIGHT.
I'M NOT SAYING I'M AGAINST THE
SURCHARGE, I'M SAYING SOMETHING
NEEDS TO BE DONE, SURCHARGE MAY
BE AN ANSWER.