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That is exactly correct and why inflation is out of control. A business is not just about profit taking. A business also has to operate in appreciation of its employees.
Labor is an expense and because the pay rate increases doesn’t mean the consumer automatically receives an increase in costs. Where do business owners stop practicing greed so much as viability. When a business owner experiences cost increases that does not give permission to pass it on to the consumer.
It is called an economy, not an exorbitant profits practice. Honestly, where is this strange permission for a power grab over consumer costs come from? Hasn’t it gone on long enough?
What is also interesting in this article is that the owner didn’t bother to look for other methods of cost reduction until the wages went up. That is an example of poor and possibly lazy b management that could have afforded the wage increase sooner than was legislated.
Employees should not be reliant on “tipping” for their most reliable income. Tipping is a practice for good or superior effort in attending to customers. Tipping is earned and not simply granted automatically by an employer as part of an employee’s wage.
