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TIP THE KITCHEN INITIATIVE - LIVABLE WAGE
This approach was driven, in part, by the idea that everyone in our restaurants needed to make above a "livable wage." Ok, so what is that? What is a livable wage?
A quick google search delivers you here: https://livingwage.mit.edu/counties/45019
This approach was driven, in part, by the idea that everyone in our restaurants needed to make above a "livable wage." Ok, so what is that? What is a livable wage?
A quick google search delivers you here: https://livingwage.mit.edu/counties/45019
2/ But as with so many things these days, the term "livable wage" has been politicized and weaponized. Bernie Sanders has spent much of his career championing a raised minimum wage, and workers rights to help achieve livable wages for all Americans. https://www.independent.co.uk/news/world/americas/us-politics/bernie-sanders-minimum-wage-parliamentarian-b1809917.html
3/ Whether you like Sen. Sanders or not, he (and many others) have raised the issue into the daily political discourse
If interested the attached article discusses the pros and cons of increasing minimum wage (fwiw, i'm in favor of $15/hr min wage) https://www.forbes.com/advisor/personal-finance/minimum-wage-debate/
If interested the attached article discusses the pros and cons of increasing minimum wage (fwiw, i'm in favor of $15/hr min wage) https://www.forbes.com/advisor/personal-finance/minimum-wage-debate/
4/ A big challenge in understanding what this term means is that "livable" may mean something different for different people.
And as this inevitably leads to partisan shouting matches, at 5SG we decided to just define it ourselves
And as this inevitably leads to partisan shouting matches, at 5SG we decided to just define it ourselves
5/ What's livable is not only location specific, as the MIT graph outlines, but also, what one does for a living should be considered. Far too often restaurant workers have accepted below livable wages as passable, resulting in, amongst many negative things, an unstable industry
6/ So our most simple definition of a livable wage - A wage you can live with. In Charleston that means above the national average for rent, food and transportation; the three largest expenditures for most people.
The annual income we decided on is: $39,600.00/year AFTER taxes
The annual income we decided on is: $39,600.00/year AFTER taxes
7/ lets do math (expenses are monthly) -
$1,100 1 bedroom apt
$500 groceries
$350 parking/transportation
$400 utilities (incl cell)
$350 misc expenses
$350 spending money
$250 health insurance
$39,600.00 on the nose
https://www.zillow.com/homes/for_rent/
$1,100 1 bedroom apt
$500 groceries
$350 parking/transportation
$400 utilities (incl cell)
$350 misc expenses
$350 spending money
$250 health insurance
$39,600.00 on the nose
https://www.zillow.com/homes/for_rent/
8/ To have an after-tax take home of $39,600.00 a person has to earn about $52,500.00.
For hourly employees working a 40 hour week, thats the equivalent of $25.25 per hour.
For hourly employees working a 40 hour week, thats the equivalent of $25.25 per hour.
9/ (disclaimer; we acknowledge that not everyone will reach the same gross number based on our proposed costs. But after polling our staff, management, and using our own experience as reasonable humans, this seems to be an imperfect, but solid budget)
10/ OK so we have our number; $25.25/hr
Almost all full time positions in the front of house of our restaurants can, and usually do make this much money per hour....generally a lot more.
There are servers @TempestCHS who will make double my first management position salary.
Almost all full time positions in the front of house of our restaurants can, and usually do make this much money per hour....generally a lot more.
There are servers @TempestCHS who will make double my first management position salary.
11/ Its worth nothing that our service staff makes $5/hr...which is double the "market" rate. This means a clear majority of their incomes are funded by gratuities from guests. 
"verrrry interesting" - thinking emoji
"verrrry interesting" - thinking emoji
12/ Now to the back of house, what do their incomes look like. Here's a pre-covid snapshot of the "market"
Executive Chef $70k+
Chef de Cuisine $50k-70k
Sous Chef $35k-55k
Lead Line $15-$18/hr
Line Cook $12-$16/hr
Prep Cook $12 - $20/hr
Dishwasher $10 - $15/hr
Executive Chef $70k+
Chef de Cuisine $50k-70k
Sous Chef $35k-55k
Lead Line $15-$18/hr
Line Cook $12-$16/hr
Prep Cook $12 - $20/hr
Dishwasher $10 - $15/hr
13/ Translating all of those hourlies to annual take homes, based on a 40 hour work week:
Lead Line: $31k - $37k
Line Cook: $24k - $33k
Prep Cook: $25k - $41k
Dishwasher: $20k - $31k
Lead Line: $31k - $37k
Line Cook: $24k - $33k
Prep Cook: $25k - $41k
Dishwasher: $20k - $31k
14/ If you are a sole wage earning parent in a family of 4, $26,500 is the threshold for the poverty line.
The "marketplace" for Culinary work in restaurants was more or less AT the poverty line, or just a tick above it pre-covid for almost ALL positions https://aspe.hhs.gov/2021-poverty-guidelines
The "marketplace" for Culinary work in restaurants was more or less AT the poverty line, or just a tick above it pre-covid for almost ALL positions https://aspe.hhs.gov/2021-poverty-guidelines
15/ That's and absolute disgrace, and honestly I am ashamed that I ever took part in an economic system that was so horribly unfair to anyone, much less the people that make the product that everyone comes to restaurants for.
BUT...
BUT...
16/ there have been MANY times along the way that, in spite of being outwardly successful, my groups stores had trouble being profitable. The first 2 years @5ChurchCHS come quickly to mind.
To immediately jump to the "greedy owner" conclusion is faulty https://twitter.com/PatWhalenNC/status/1386271600815788035
To immediately jump to the "greedy owner" conclusion is faulty https://twitter.com/PatWhalenNC/status/1386271600815788035
17/ I cannot just raise every staff members rate to $25.25/hr, we would likely be insolvent, and we are more successful economically than most
Its an impracticality to assume that the restaurant industry can change by just raising prices and then raising wages congruently
Its an impracticality to assume that the restaurant industry can change by just raising prices and then raising wages congruently
18/ there is a cap to how much people will be willing to pay to dine out. But that cap is different for everyone.
Some of our guests can afford a bottle of Dom Perignon, some can afford a pint of Guinness...likewise some people can leave an 18% tip, others 22%+
Some of our guests can afford a bottle of Dom Perignon, some can afford a pint of Guinness...likewise some people can leave an 18% tip, others 22%+
19/ So what if we found a way to get more money in the pockets of those that need it the most, spent only by the people most able and willing to do so, without losing market share and only increasing operational expenses 1%* (projected) ?
20/ WE believe a livable wage is an idea; a wage you can live with. You can do your job, provide, have some pleasure, have some security, and most importantly, believe you have value in the world.
If you can't have those things, then you're not really alive
If you can't have those things, then you're not really alive
21/ ....and simply put, WE can't live with that.
PS/ Anecdotally, @chefjamielynch and I were discussing this thread in the context of our overall strategy and it occurs to us that there are kitchen workers whose wages are less than 15/hr.
Or, there were. Retroactive to 4/26 there aren't anymore. $15/hr is our new min wage.
Or, there were. Retroactive to 4/26 there aren't anymore. $15/hr is our new min wage.
