Quote:
Originally Posted by John Mercier
The market is whatever is supply/demand equilibrium is.
So if one establishment is paying more... even if you feel that it is ''over market''... but that establishment is moving forward; and another establishment is paying what you feel is ''market'' but it is moving backward... then what you feel is appropriate ''market'' is not accurate.
If a business doesn't pay enough to acquire the number of employees it needs to service its customers, it must either pay more to acquire the employees that it needs or reduce its customer demand.
Most managers come from a theory that reducing customer demand is bad. So they are caught on the wheel that they must pay more to acquire the employees that they need or go out of business.
In the past, managers would look to make employees more efficient... more productivity; but that is largely easier to do with industry rather than service. Service productivity is less about flow management and more about training and enticement.
Think of that in a restaurant as more like waiting tables... the more tables and turns you can handle... the more you can make in tips.
The backroom staff can be managed like industry... a type of production line... but their enticement (pay/salary) is usually static.
Large international hotels have handled this by including tips in the bill. A tip for the waitstaff (as some people do not tip or tip well) and a surcharge/tip for the backroom staff. The more food they prepare... the more they can make.
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There's a shop in Wolfeboro where the tip jar has a sign that says "support our workers".
Raising the logical questioh, "Why don't you support your own workers?"