Red Lobster and Olive Garden WON'T Cut Jobs

[02Ram54]

Just wanted to make sure you noticed.

 

They claim that they market tested more part time employees and satisfaction dropped at those restaurants.

 

Since they only have about 25-30% of their workers on full-time now, I imagine the intense consumer backlash to their decision had more to do with it.

 

In any case, to conservatives I say:

 

"Congratulations! The market worked!"

 

[marvel]

I long to live in a world where businesses can openly state how a regulation or mandate by government can hurt them without ignorant Americans getting mad.

[rockmom]

I long to live in a world where businesses can openly state how a regulation or mandate by government can hurt them without ignorant Americans getting mad.

 

There are places like that in the world...just not in America.

[02Ram54]

I long to live in a world where businesses can openly state how a regulation or mandate by government can hurt them without ignorant Americans getting mad.

I think many people throughout history have longed to live in a world where almost everyone agreed with them.

[PurplePride92]

I long to live in a world where businesses can openly state how a regulation or mandate by government can hurt them without ignorant Americans getting mad.

 

I long to live in a world where we can all disagree on things without being labeled ignorant.

[marvel]

In response to 02Ram: not what I am talking about.

 

The idea that an individual can start his own business from scratch -- from the bit of savings they may have -- and then making it into a multi-million dollar company is a relatively new idea. You don't see that idea throughout history. What we have seen is government telling individuals what they must do when it comes to their household and/or livelihood. That has been every governments status quo.

[marvel]

I long to live in a world where we can all disagree on things without being labeled ignorant.

 

You get mad at businesses for simply stating that the healthcare mandate will cost them money and force them to cut employees.

 

To me, that is ignorant.

[doomer]

I have found :cool:amusement (liked) in too many posts already on this thread. :lol:

[doomer]

Just wanted to make sure you noticed.

 

They claim that they market tested more part time employees and satisfaction dropped at those restaurants.

 

Since they only have about 25-30% of their workers on full-time now, I imagine the intense consumer backlash to their decision had more to do with it.

 

In any case, to conservatives I say:

 

"Congratulations! The market worked!"

 

 

That is good news and it will continue to work if left alone. The risk is that there is a higher labor cost to the restaurant that then must be pushed to the consumer in the form of a price increase. If the restaurant business is a demand-elastic market, then the higher price will yield lower volume as consumers take their business elsewhere. Then, did the price increase offset the volume loss? The volume loss will THEN precipitate the job loss. Not predicting this, just stating economic reality.

[rockmom]

 

That is good news and it will continue to work if left alone. The risk is that there is a higher labor cost to the restaurant that then must be pushed to the consumer in the form of a price increase. If the restaurant business is a demand-elastic market, then the higher price will yield lower volume as consumers take their business elsewhere. Then, did the price increase offset the volume loss? The volume loss will THEN precipitate the job loss. Not predicting this, just stating economic reality.

 

On paper...in reality nothing has really stopped Americans from dining out for a long period since the Great Depression. Managed correctly, the increases necessary in pricing will be minimal (eg.....14/pizza). The industry has passed along the increase in costs associated with food and fuel prices with no long-lasting detriment.

[PurplePride92]

You get mad at businesses for simply stating that the healthcare mandate will cost them money and force them to cut employees.

 

To me, that is ignorant.

 

To each his own. I refuse to believe that a multi million dollar company can't survive unless it cuts employees so it can cover healthcare costs. If that makes me ignorant then so be it. I've said it a thousand times, the company I work for will continue to make millions and millions of dollars without cutting employees and will comply with the healthcare mandate as well. All these multi million dollar corporations need to follow the Corning Incorporated business model. Maybe then they won't have to cry anymore.

[marvel]

To each his own. I refuse to believe that a multi million dollar company can't survive unless it cuts employees so it can cover healthcare costs. If that makes me ignorant then so be it. I've said it a thousand times, the company I work for will continue to make millions and millions of dollars without cutting employees and will comply with the healthcare mandate as well. All these multi million dollar corporations need to follow the Corning Incorporated business model. Maybe then they won't have to cry anymore.

 

The business most likely can survive....if it is big enough. The central problem is that government is telling a business what it must do. I have a huge problem with that. The goal of any business is to make a profit, therefore they are going to focus on the consumer. Not you. The business wants to make a profit. It does that by creating a good product. It has a good product by having good workers. It has good workers because they are probably happy with what they do and how the business treats them. Businesses have incentives to treat their employees right. Nowhere should government be involved. Its really not hard to comprehend.

 

These corporations ''need'' to or they should? I take it you would love a mandate stating that every business should follow the corning business model.

 

Multi million/billion dollar corporations are the way they are because of government intervention. Which is what you are always advocating for.

[doomer]

On paper...in reality nothing has really stopped Americans from dining out for a long period since the Great Depression. Managed correctly, the increases necessary in pricing will be minimal (eg.....14/pizza). The industry has passed along the increase in costs associated with food and fuel prices with no long-lasting detriment.

 

Then they do not face a demand-elastic market...at least within certain thresholds. OR, it could be the case that other factors, differentiation, loss of other competitors, population growth, changing lifestyles have offset the loss of volume associated with increased prices. That is a fact we will never know. IF we, hypothetically speaking, had two Olive Gardens right across the street from each other....which one would most people frequent...the higher or lower priced restaurant...assuming everything else is equal?

 

Point is...in business a cost increase is a cost increase. If one can make it up by increasing prices...one should have done that anyway! The business has been losing an opportunity.

[rockmom]

 

Then they do not face a demand-elastic market...at least within certain thresholds. OR, it could be the case that other factors, differentiation, loss of other competitors, population growth, changing lifestyles have offset the loss of volume associated with increased prices. That is a fact we will never know. IF we, hypothetically speaking, had two Olive Gardens right across the street from each other....which one would most people frequent...the higher or lower priced restaurant...assuming everything else is equal?

 

Point is...in business a cost increase is a cost increase. If one can make it up by increasing prices...one should have done that anyway! The business has been losing an opportunity.

 

The hospitality industry is demand elastic, but like gas consumption, Americans still find a way no matter what the cost. :lol:

[PurplePride92]

The business most likely can survive....if it is big enough. The central problem is that government is telling a business what it must do. I have a huge problem with that. The goal of any business is to make a profit, therefore they are going to focus on the consumer. Not you. The business wants to make a profit. It does that by creating a good product. It has a good product by having good workers. It has good workers because they are probably happy with what they do and how the business treats them. Businesses have incentives to treat their employees right. Nowhere should government be involved. Its really not hard to comprehend.

 

These corporations ''need'' to or they should? I take it you would love a mandate stating that every business should follow the corning business model.

 

Multi million/billion dollar corporations are the way they are because of government intervention. Which is what you are always advocating for.

 

 

How am I always advocating for government intervention? Oh, that's right because I am ignorant and don't agree with the almighty marvel. I'll be glad when you become President of the United States and save us all from our own ignorance.