Monday, 11 April 2016

Would You Like Another Big Helping Of Consequences?

Caffe Nero will no longer provide its staff with a free lunch while on shift following the introduction of the new National Living Wage.
 Well, that's a turn up for the books! Gosh. Who could have predicted this?
The company said the change in wages, which came into force on 1 April, will have a “significant financial impact of the business” and they are therefore looking into new ways to cut down on costs.
 *munches popcorn*

Oh. Sorry. That was a bit insensitive...
...staff told BBC Newsbeat their food choices were now being restricted.
No they aren't. You can eat whatever you want. It's just that now, you have to pay for it.
One claimed: "Before the National Living Wage increase we were allowed to order whatever we wanted off the menu.
"Now we're only allowed to order a plain margherita or a plain cheese and tomato pasta. Any additional toppings we have to pay for at cost price.
"The staff don't seem to be very happy about it as it was one of the benefits of working there."
But other people thought that they knew best. They thought that the benefit of working there should be a 'living wage'. They thought that companies - which exist to make a profit, after all - would swallow the cost.

They were wrong. As anyone with half a brain could have told them.

8 comments:

Antisthenes said...

You are very good at getting to the nub of controversial actions. Indeed the reference to half a brain is exactly that. It does seem that the majority of the population has had a lobotomy. Many of the so called intelligent and the academically and politically wise appear to have had the same surgery. If anybody thought differently than that the minimum wage is a poor idea and those who it is designed to help would be those who in the end would benefit least. Then they are barking mad or at least very stupid. Adopt socialist/progressive/lefty ideas and you can be sure that the outcome will be bad and not that intended. They do not have half a brain however in fact they have no brain at all.

James said...

I was arguing about this with a lefty friend on Facebook at the weekend. I pointed out that surely it was a scandal that previously their employees were paid so little they could not afford their own lunches and their employer had to provide them instead. Now that has been corrected and they are earning more, the subsidy is no longer required.

"Oh but don't you see, it means they are no better off overall" he wailed.

Well no, because now they can afford to buy the ingredients to make their own lunch and eat during shift breaks, far cheaper than the overpriced plastic tat that Caffe Nero sells.

He is also one of these "moar tax, moar revenue" types who believes all tax is wonderful. I then asked why he objected to Caffe Nero being able to reduce their operating costs by by not having to subsidise staff food, thus potentially improving profitability (and increasing the amount of corporation tax they must pay).

Never mind the fact that replacing free food (an untaxed benefit in kind) with increased wages means they contribute more to our poor impoverished hospitals (his words) thanks to increased employers NI payments.

Basically it was a fun weekend.

Bucko The Moose said...

""at cost price""

They should be able to afford it then, with their new pay rise.

Anonymous said...

Bunny,

Instead of putting up wages by government edict how about reducing the cost base for those on a low wage, by reducing their taxes and duties on essential goods. Make the government smaller and lower costs, you don't need a 'living wage'.

John M said...

Coffee shops are a bit of a special case but frankly any business which takes about 7p of raw materials and marks it up to over £3 can easily afford to pay the living wage

The Stigler said...

John M,

But it isn't 7p of materials. It's 15p of beans. Then there's water... supply and heating and plumbing. Those cups, new and replacement don't come for free. Nor does the machine that makes the coffee. Or the machine that washes it. Or the toilet where you expel it. Or the person that cleans that along with the floor and tables. Oh and of course, those chairs and tables. And when you sit there drinking your coffee with a sugar (mustn't forget the sugar and stirrer cost) and use the wifi (another cost) looking out of the window (that someone had to clean and may have been fitted, and if broken, claimed on insurance, another cost), you might like to think about who built the cafe and put a roof on it.

I did some rough sums and reckoned that the new wage is the equivalent of Nero losing 10% of their £24m profit. Ok, it's affordable, but it's hardly a light amount of money.

Anonymous said...

You are a fool if you think coffee shops reap huge profits because 7p of raw ingredient is taken away from £3 cup price and the resultant is profit. Wages and rent plus the cost of regulation leaves very little profit on that £3 cup.

Canberra quack

JuliaM said...

"It does seem that the majority of the population has had a lobotomy. Many of the so called intelligent and the academically and politically wise appear to have had the same surgery. "

That 'long march through the institutions' clearly paid off... :/

"Basically it was a fun weekend."

*high fives you*

"Make the government smaller and lower costs, you don't need a 'living wage'."

But what would all the media graduates do..? ;)

"...but frankly any business which takes about 7p of raw materials and marks it up to over £3 can easily afford to pay the living wage"

If people will pay it, why not?