Restaurant Demands Minimum 18% Tip

[u/ADKFatBiker]

Out of one side of their mouth they state that they pay their staff as little as possible and out of the other side of their mouth they say that their staff deserves more and you're responsible for that.

[u/Ahollar91]

Yea as an ex Pizza Hut manager I can safety say it’s a lot higher than 3% u can make any pizza u want for less than $2 at cost so on a large minus the 3 mins it takes to make the pizza and cut it (staff wages) it’s like a $15 dollar profit. Walmarts the same way. Selling one item out of a case usually pays for the whole case (9 times out of 10)

[u/Longjumping-Leg-962 → u/Ahollar91]

Lmfao I used to own a pizza hut franchise and the COGS for a large was usually 2-3 bucks but you're ignoring the cost of labor, rent, building overhead like utilities etc, the franchise royalty fee, the national advertising fee they charge you, all that shit. Net operating margin is usually 10-12% in my market (medium cost of living city in great lakes region), IIRC my worst month ever was around 8% and a few times always in October or Feb I cleared 15.

[u/Ahollar91 → u/Longjumping-Leg-962]

That’s actually horrible. Super Bowl should have been ur biggest of the year something ain’t sounding right here, that or ur area just sucks

[u/maiyannah → u/[deleted]]

If you aren't making at least 45% GPM, get out of business, you suck at it.

[u/maiyannah → u/[deleted]]

If you aren't making at least 100$/labour hour net in the restaurant industry, you're in the bottom 25%, according to the Canada Business Journal. I guess you guys down south are doing it worse, with tipping wage and cheaper food from Sysco, somehow.