People laughed at Pizza Punch owners John Puckett and John Soranno two years ago when they raised their minimum wage to $10 an hour for entry level employees and $13 for management. Predictions of their demise were heard from the usual sources. Of course, that didn't happen.
Instead, their company is doing quite well. In fact, they've opened two more restaurants bringing the total to 10 now in the Twin /Cities area. Puckett said the higher wages did not cause Punch to increase prices. He also said it “has had a big impact culturally in the company.” He said that retention of employees is up, which helps them save money on hiring and training. He estimates the average worker in the front — cashiers and waiters who are often students — work about three years, while the kitchen workers average five years of employment, which is very high for this transitory industry. “Our retention is light years ahead of most restaurants,” Puckett said.
“We just weren’t getting the quality of applicant before. Now we have a lot more applications that we don’t have jobs for. If you pay people more, I think you can demand more. When we did this, we got everybody together and said, we need to blow people away with our service.”
Asked about those strange, angry calls when he increased raises, Puckett laughed.
“The cynics didn’t win,” he said.
Yet this is just one example in one state. It's also a micro examination. To find a macro example, one need look now further than Seattle which, one year ago, mandated a $15 an hour minimum wage. Those same critics claimed that unemployment would skyrocket as businesses would not be able to retain employees. When the law was passed, Seattle's unemployment rate was 4.4 percent. Today it's 3.7 percent.
I think their prediction on this Labor Day 2015 was not correct:)
No comments:
Post a Comment