Does Minimum Wage Increase Help Or Hurt The Appraisal Business?

[ucbruin]

@Randolph Kinney

You ignore the 400% increase in rent, the high cost of begin located in Boston, the changing tastes of restaurant goers, Faneuil Hall losing its appeal as a tourist trap, competition from new restaurants....

And you read the article....
And all you see is....
"...including an increased minimum wage. 'It’s very unfortunate, but the costs are too high,' he said.""

That's rather pathetic....

 

[ucbruin]

No but the straw that broke the camel's back was the increase in the minimum wage, according to the article.

Again, no it wasn't....
Where in the article did it say wages were the last straw?
I admit I could have missed it....

 

[Randolph Kinney]

No it wasn't....

Owner Ark Restaurants says the Faneuil Hall outpost is no longer financially feasible because of rising costs and the loss of customers to fresher, edgier destinations.

At the same time, he told local media, the bottom line has been hurt by soaring labor and insurance costs.

https://www.restaurantbusinessonline.com/operations/boston-landmark-durgin-park-set-close

Strange, you can't acknowledge what is published in the various news sources.

 

[Randolph Kinney]

@Randolph Kinney

You ignore the 400% increase in rent, the high cost of begin located in Boston, the changing tastes of restaurant goers, Faneuil Hall losing its appeal as a tourist trap, competition from new restaurants....

And you read the article....
And all you see is....
"...including an increased minimum wage. 'It’s very unfortunate, but the costs are too high,' he said.""

That's rather pathetic....

Did you know the owner tried selling the restaurant for a year before he closed it? Read this source:

Weinstein said the restaurant’s fate has been in doubt for about a year, but left open the possibility that a buyer would emerge to keep the landmark open.

At the same time, he told local media, the bottom line has been hurt by soaring labor and insurance costs.

https://www.restaurantbusinessonline.com/operations/boston-landmark-durgin-park-set-close

 

[Randolph Kinney]

Again, no it wasn't....
Where in the article did it say wages were the last straw?
I admit I could have missed it....

Demise of Durgin-Park a symptom of challenges facing small restaurants

The impending closing of the venerable Faneuil Hall institution Durgin-Park has shed a harsh light on a growing crisis Boston restaurants face under pressure from skyrocketing rents, rising costs and rampant competition.

Manager Kenneth Thimothee said the state’s new minimum hourly wage, which rose from $3.75 to $4.35 for tipped workers and from $11 to $12 for other employees, is partially to blame. And Durgin-Park will not be the only high-profile restaurant that will close this year, said Bob Luz, president and CEO of the Massachusetts Restaurant Association.

“We’re going to have a number coming up in the not-too-distant future,” Luz said, although he declined to say which ones.

“There’s more competition, so it keeps you on your toes and makes you put your best effort forward. But I think the novelty of the Seaport is balancing off now.”

If so, it could be because of soaring rents there, one expense the Union Oyster House hasn’t had to worry about because its owners also own the property, Malinn said.

https://www.bostonherald.com/2019/0...mptom-of-challenges-facing-small-restaurants/

Too bad you only see what you want to see and you have no business sense either. Cost of operating a minimum wage business has gone up and as such, stores have closed and will close. Many articles out there for you to read.

 

[DTB]

I agree Overimprovement!

Once I was assigned to appraise just such a house across from a very busy family owner fast food place. The house was the only non commercial building for 2 blocks and was legal non conforming. I knew the house the minute it rolled out of the FAX machine. Had a helluva time convincing the lender that it's HBU was commercial and to re-assign.

It was exact same situation as you describe.

 

[ucbruin]

Costco joins Amazon with $15 minimum wage, putting pressure on Target and Best Buy

http://m.startribune.com/costco-joi...ng-pressure-on-target-and-best-buy/506899532/

Since $15/hour is now a reality at Amazon and Costco....

Shall we start the countdown to their bankruptcy?
Let's keep a focus on them....

I hope it doesn't happen but it would be a sign....

 

[ucbruin]

Oyster House/Durgin-Park

Location Boston/Boston
Business Restaurant/Restaurant
Established 1826/1827
Emp wages $12/hour/$12/hour
Property Own/Rent
Status Open/Closed

Pair data is limited but I do recognize one major difference between the 2 restaurants....

 

[J Grant]

Demise of Durgin-Park a symptom of challenges facing small restaurants

The impending closing of the venerable Faneuil Hall institution Durgin-Park has shed a harsh light on a growing crisis Boston restaurants face under pressure from skyrocketing rents, rising costs and rampant competition.

Manager Kenneth Thimothee said the state’s new minimum hourly wage, which rose from $3.75 to $4.35 for tipped workers and from $11 to $12 for other employees, is partially to blame. And Durgin-Park will not be the only high-profile restaurant that will close this year, said Bob Luz, president and CEO of the Massachusetts Restaurant Association.

“We’re going to have a number coming up in the not-too-distant future,” Luz said, although he declined to say which ones.

“There’s more competition, so it keeps you on your toes and makes you put your best effort forward. But I think the novelty of the Seaport is balancing off now.”

If so, it could be because of soaring rents there, one expense the Union Oyster House hasn’t had to worry about because its owners also own the property, Malinn said.

https://www.bostonherald.com/2019/0...mptom-of-challenges-facing-small-restaurants/

Too bad you only see what you want to see and you have no business sense either. Cost of operating a minimum wage business has gone up and as such, stores have closed and will close. Many articles out there for you to read.

You don't realize your own links don 't attribute the closings to min wage issues, rather to HIGH RENTS and competition? While wages are a factor they are not the driving factor. Also the chain restaurant and fast food boring menus and meat centric and unhealthy fried etc are to blame , people are starting to shun that food,

You need to find other articles to cherry pick to support your view

 

[ucbruin]

You don't realize your own links don 't attribute the closings to min wage issues, rather to HIGH RENTS and competition? While wages are a factor they are not the driving factor. Also the chain restaurant and fast food boring menus and meat centric and unhealthy fried etc are to blame , people are starting to shun that food,

You need to find other articles to cherry pick to support your view

RK is not stupid....
He just believes the rest of us are....