The Straight Story
Dominos Stores Closing; More than 100 Laid Off , franchise owner sites high min. wage as one reason
Eight Domino's pizza stores are closing the Reno area, according to franchise owner Brandon Jones.
Jones said it's hoped just one store may remain open. However, it appears the following locations are closing: Greenbrea in Sparks, Robb Drive in West Reno, Fallon, Fernley, Sun Valley, Stead and Susanville. Jones said the Fernley store shut down last week. He said he shut down a store on Vista Boulevard four months ago. The other closures were expected to be effective Sunday.
Jones said the latest closures leave 120 to 130 people out of a job.
"I sure don't want these employees to be without a job for long, it's very unfortunate we're talking about 130 or so employees I know how it feels to be without a job because I'm without one too," Jones said.
He said business is down about 40 percent from two years ago. Jones said increases in the minimum wage have also made it difficult to be profitable. Jones said he owes Domino's $80,000 and was forced to close his stores.
http://www.kolotv.com/news/headlines/37428554.html
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4820256&mesg_id=4820256
Sales go down. Payroll goes up by artificial interference by gov't. People lose their jobs.
We all know that's what happens.
But when you're married to an ideology rather than reality, you get reactions like this:
Occam Bandage
1. If his business was only profitable through underpriced labor, then it deserves to close. Other, better-paying jobs will open up because of the increased spending by other workers seeing a raise. No study has ever shown a negative employment effect caused by minimum wage increases.
ogneopasno
Response to Reply #1
7. Exactly. If his margin was so thin that that put him over the edge, he wasn't running his franchises well anyway.
lumberjack_jeff
57. Causality.
I could believe that he was put out of business by the shitty economy. I don't believe that, given the shitty economy, it was the minimum wage that put him out of business.
pending
Response to Reply #1
62. true. But those employees didn't deserve to be laid off either
Now they aren't receiving any wage at all.
It seems that maybe a requirement should be put in place that bars employers from laying off employees for 6 months after a minimum wage increase, to close this loophole.
xchrom
4. he's a liar -- and he was gonna say that no matter what.
katusha
9. it has nothing to do with his mismanagement eh?
sure, blame the workers for your failings as a businessman.
He didn't blame the workers, he blamed the artificial increase in wages as mandated by the gov't.
Idiot.
madokie
14. skimmed a little too much off the top there didn't you buddy
**** him. I wonder how many of his workers were undocumented workers?
soonerhoosier
27. He is specifically grousing about the minimum wage increase.
If it were the case that the presence of service worker unions was driving up the wages of his non-union employees, I'll bet he would be sure to grouse about that.
JHB
24. Franchise (monopoly supplier) also "makes it difficult to be profitable" in the face of a 40% downturn in business. You can't economize or make deals with Corporate.
Hell, in a 40% downturn, ANY expense "makes it difficult to be profitable". If you are still profitable you must have been gouging the hell out of your customers.
I wonder how many forclosures he had in his delivery areas. And how many are barely staying above it? That's the sort of stat you'd want to know with a business based on people paying $10-20-more a pop for convenient mediocre (at its best) pizza and NOT looking for ways to economize and save a few bucks.
Here's a hint, Brandon: put Democrats in office. Then enough people will have money to spare that your francises won't go bust.
Putting Dems in office was what caused him to have to lay off employees, dolt.
NCevilDUer
28. He cites min wage as A reason, not THE reason, and also says business is down 40% over two years. IOW, it's the collapsing economy that is causing the failure, and his political POV tells him to blame the min wage. The fact is, even if the min wage had not increased, he would still be dealing with a 40% loss of business and would still be going under.
Funny, he didn't mention $4 gas as having anything to do with going $80k in debt on the franchise, when the business is entirely dependent upon deliveries. I betcha, he instituted a minimum charge for making deliveries to make sure each trip was worth it, and in doing so lost 10% of his business right there.
greyhound1966
37. Business drops 40% and the franchise fees remain, but it is the minimum wage...
ColbertWatcher
53. What an ass.
He's closing down because his customer base has no money for pizzas.
Dumbass.
At least this primitive is signing his name at the bottom of his posts now.
Lot of comments about how bad Domino's Pizza is, but that's not the point.
Another wonderful example of how Democrats/liberals claim to care about the small business man, but when he tells them why he can't continue to employee people, or any number of things that don't fall in line with their political POV, then the small busines owner is to be belittled and mocked.
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