THAT MEANS MORE THAN 750,000 OF
THEM WONT SEE A PAY BUMP.
THIS IS HAPPENING AS BUSINESSES
ACROSS THE COUNTRY ARE DEBATING
RAISING WAGES.
BANK OF AMERICA ANNOUNCED THEY
WOULD BOOST THEIR MINIMUM WAGE
TO $25 PER HOUR.
ONE ICE CREAM SHOP IN PITTSBURGH
COULD NOT FILL OPEN POSITIONS SO
THEY RAISED THEIR STARTING WAGE
FROM $7.25 TO $15 HOUR AND NOW
THEYRE CHALLENGING OTHER
BUSINESSES TO DO THE SAME THING.
WE HAVE THE CO-OWNER OF THE ICE
CREAM SHOP.
WHEN I TALK ABOUT RAISING
MINIMUM WAGE I HEAR YEAH, BUT
YOUR LOCAL ICE CREAM SHOP CANT
PAY PEOPLE MORE THAN $7 AN HOUR.
YOU CAN, YOU DID, AND ITS
WORKING.
>> YES, FIRST OF ALL I WANT TO
SAY THANK YOU FOR SUPPORTING
SMALL BUSINESSES AND HAVING
SMALL BUSINESSES ON YOUR SHOW.
I WOULD SAY THAT THERE IS A LOOP
GOING ON HERE THAT WE ARE
CLOSING.
IF WE HAVE BEEN LOYAL TO OUR
EMPLOYEES THAT PAYS BACK IN
TERMS OF IMPROVING BUSINESS.
>> WHAT HAPPENED WHEN YOU RAISED
YOUR STARTING BUSINESS TO $15 AN
HOUR WHAT HAPPENED?
>> WE RECEIVED OVER 1,000
APPLICATION.
I THINK 250 APPLICATIONS OFF OF
FACEBOOK.
WE STOPPED COUNTING ONCE WE
REACHED 1,000.
WE RAISED THE 15 POSITIONS.
>> HAS TURN OVERCHANGED SINCE
THEN?
THERE IS TONS AND TONS OF TURN
OVER AND PEOPLE DONT STAY LONG.
RETRAINING EMPLOYEES, FINDING
NEW EMPLOYEES?
>> YES, ESPECIALLY IN THE
RESTAURANT BUSINESS TRNOVER IS A
BIG DEAL AND THE OTHER ISSUE IS
BURNOUT.
A LOT OF PEOPLE WORK TWO AND
THREE JOBS AND PEOPLE ARE
REPORTING TO WORK IN A BETTER
MOVE.
THINGS LIKE THAT THAT YOU DONT
ALWAYS ACCOUNT FOR.
>> THAT MAKES THE QUALITY OF
WORK BETTER, YOU BASICALLY
DOUBLED YOUR PAYROLL.
>> YES AND NO.
FROM A TOP LINE PERSPECTIVE WE
HAVE MORE PEOPLE COMING INTO OUR
SHOP AS A RESULT OF RAISE OG OUR
WAGE BECAUSE PEOPLE WANT TO
SUPPORT A BUSINESS THAT IS
TAKING CARE OF THEIR EMPLOYEES.
ALSO OUR COSTS ARE GOING DOWN AS
A RESULT OF LESS TURNOVER AND WE
HAVE NOT RAISED PRICES.
I HAVE NOT NOTICED A DIFFERENCE
ON OUR BOTTOM LINE.
>> IS IT A FAIR ARGUMENT TO SAY
THAT YOU DONT HAVE A BUSINESS
MODEL THAT WORKS IF YOU CANT
RUN A BUSINESS PROFITABLY AND AT
THE SAME TIME PAY PEOPLE A
LIVING WAGE?
>> I AGREE.
YOURE CHALLENGE OTHERS TO
CHANGE THEIR BUSINESS, WHY HAVE
THEY.
>> I HAD TO STUDY THIS IN DEPTH
AND REALLY THINK THROUGH HOW I
WAS GOING TO MANAGE THIS.
AND ALSO FACING THE CHALLENGE OF
RIGHT NOW IN THE MARKET, BETTER
EMPLOYERS ARE PAYING HIGHER
WAGES.
SO I WAS LOSING SOME OF MY BEST
EMPLOYEES TO BETTER EMPLOYEES.
SO WHEN I FIGURED OKAY HAVING
BETTER PEOPLE BACK, BET ERE
CUSTOMER RETENTION, CHURN IS
LOWER AND THINGS LIKE THAT YOU
HAVE TO CALCULATE AND THINK
ABOUT ALL OF THE ITEMS FOR A
FORECAST.
ITS NOT JUST STRICT DOUBLE BOOK
ACCOUNTING.
YOU THINK V TO THINK ALL ABOUT
COMPREHENSIVE PARTS OF THE
BUSINESS AND TAKE IT ALL INTO
ACCOUNT.
>> I HAVE TO ASK YOU WHATS YOUR