Minimum Wage Rises $1.05 an Hour, How Does That Cause $8 Coffees? Can Anyone Explain The Math on That

AustriaBargain on 18/06/2022 - 18:19

Been reading a lot about business owners complaining about the minimum wage increase. And I don't really understand how they can say it'll hurt them so bad or increase prices of products so much. I know other factors will increase prices, like war in Europe, supply chain, etc. but they specifically cite the minimum wage increase as the cause. If they charge $5 for a coffee now and would like to raise the price to $8 in response to the wage increase, then their workers would have to be making one coffee every three hours. The math just doesn't add up. $1.05 per hour divided by the number of coffees made on average per hour should add just a few cents to a cup. If paying just a few more dollars per hour for your staff breaks your business then you're already on the verge of bankruptcy. Plus if you're already paying minimum wage then it shows that you would like to pay your employees even less, if the law let you.

I saw one cafe owner who says he already pays his employees 20% above award claim that the minimum wage increase will somehow hurt him, despite being under no obligation to raise his employees pay because it's already nowhere near minimum wage.

Now I know some food businesses are actually very friendly and cruisey with their staff and let them work at a gentle pace, which I think is fantastic because a good work environment should be kinda relaxed imo, so the minimum pay increase will hurt them more than other businesses that drive their employees like work horses. But even then we're still talking just a few cents per item made/sold.

What does anyone else here think of it? Is anyone here making minimum wage or employee minimum wage employees?

Education & Work

Comments

  • randomusername2017 on 18/06/2022 - 18:23
    +49

    Isn't coffee already $8?

      • SydStrand on 18/06/2022 - 21:48
        +6

        Ah yes, miss one payment to Tony Soprano and Bean Squeeze gets the "shame if anything happened to it" talk.

        • TEER3X on 20/06/2022 - 08:06
          +2

          Not for nothing, but it's called Bada Bean for a reason

          • ProjectZero on 20/06/2022 - 11:24
            +1

            @TEER3X: If that's not copyrighted, I'm stealing that for a cafe name or something lol

      • WhyAmICommenting on 19/06/2022 - 07:53
        +39

        lol why even make the post then?

        • LFO on 19/06/2022 - 15:58
          +3

          Need to hate someone?

      • AndyC1 on 20/06/2022 - 17:07
        +2

        Troll post then if OP has no idea how much coffee is.

    • pharkurnell on 18/06/2022 - 19:55
      +6

      Not on this planet.

      • brendanm on 19/06/2022 - 13:06
        +22

        The selfish are wanton

        How exactly is buying things you can afford, selfish?

        • Gandalf the Grey on 19/06/2022 - 13:10
          -6

          Depends, are you buying things for yourself or for others? Some people are struggling to pay for the basic necessities while others are splashing their cash as if it is nothing.

          • brendanm on 19/06/2022 - 13:40
            +1

            @Gandalf the Grey: What does that have to do with selfishness?

          • brad1-8tsi on 19/06/2022 - 15:54
            +6

            @Gandalf the Grey: But if you earn good money, spending it is how trickle down economics works.

            If me and 60 other reasonably well-off folk that went to Fable 2 weeks back and spent $150 each on food and booze didn't go then the Turkish waiter that we had wouldn't be able to afford to pay for his engineering degree. Getting that degree would then allow him to enter a similar field to mine so that he earns enough to blow his cash at another expensive restaurant and help another waiter fulfil their dreams.

            People need to spend their money and keep the economy moving

            • Drakesy on 20/06/2022 - 12:31

              @brad1-8tsi:

              People need to spend their money and keep the economy moving

              And this is why low interest rates and high house prices were never a good thing.
              People saving up for bigger mortgages sapping the economy of circulating funds.

              THANKS RBA and the coalition!

            • Techie4066 on 25/06/2022 - 01:20
              +1

              @brad1-8tsi:

              trickle down economics works.

              Mhmm.

          • juki on 19/06/2022 - 17:24
            +3

            @Gandalf the Grey: hasnt the world always been like that ?

            when i see young aussies have cars, 3 meals a day and not even finishing their maccas compared to when i was that age where i am from i am also envious of their luck, just be grateful for what you have, we often overlook that.

          • baldur on 19/06/2022 - 21:36

            @Gandalf the Grey: You make zero sense.

            • cunningdrew on 21/06/2022 - 10:12

              @baldur: Meanwhile, in the northern end, people are dying from crocodile attacks!

          • [Deactivated] on 20/06/2022 - 10:39
            +1

            @Gandalf the Grey: At least they aren't wasting hours listening to epic sax music

        • juki on 19/06/2022 - 17:19
          +5

          what does selfish are wanton even mean, isnt that a fried chinese dumpling?

        • brendanm on 19/06/2022 - 16:52
          +15

          The truth is, the vast majority of Australians, including the vast majority of OzBargainers, are rolling in money.

          You are deluded. Look at the median wage.

          Tax the rich, terminate middle class welfare, redistribute the wealth.

          The people in the top tax bracket already pay more than a third of total income tax. What "middle class welfare"? Why "redistribute the wealth"? Why should people who have earnt money, have it taken off them?

          • lonewolf on 20/06/2022 - 11:48
            +3

            @brendanm: Not sure i agree on the part of tax payments as in, most of the wealthier people i know have got good accountants that get them to actually pay a lot less tax than they are meant to. Its more the middle income people that end up paying a lot of their income away on tax.

          • leiiv on 20/06/2022 - 14:01
            +3

            @brendanm: Most of the people in the top tax bracket are the middle class.
            The ultra upper class can be in any bracket, the bracket does not matter to them.
            The wealth needs to be redistributed because the ever increasing gap between the rich and the poor creates imbalance in the society.

            • brendanm on 20/06/2022 - 14:39
              -1

              @leiiv: There is always a gap. Always has been, always will be.

        • Harold Halfprice on 19/06/2022 - 17:37
          +20

          The truth is, the vast majority of Australians, including the vast majority of OzBargainers, are rolling in money. They could easily afford $25 cups of coffee.

          Wtf are you smoking?

          • AuSlade on 20/06/2022 - 14:22

            @Harold Halfprice:

            Wtf are you smoking?

            $25 cups of coffee….

            I buy coffee out on occasion, but have a preference of grinding my own beans and making it at home, it's much more cost effective. That and I don't have to ask if they have lactose free milk and decaf. $5/cup is generally ok, but not several times a week every week.

        • MikeKulls on 20/06/2022 - 09:34
          +6

          A lot of down votes on this but I'm doing OK financially and I agree. Australia is getting richer and the very rich are getting a larger and larger slice of the pie. This is the big problem today. If we took more money from the rich and actually helped the less well off more then australia would be a better place.

          • lonewolf on 20/06/2022 - 11:48
            +3

            @MikeKulls: This is true, the divide between the rich and the poor is definitely growing.

        • Buckshot on 20/06/2022 - 10:45
          +4

          I can tell you that as someone in a comfortable (rolling in it is subjective) dual-income situation with two six-figure incomes, I definitely would NOT be buying a $25 cup of coffee. Give me Lavazza instant or beans from my local roastery, thank you.

          • ankor on 20/06/2022 - 20:41
            +1

            @Buckshot: If your local roastery isn't selling $25.00 cups of coffee then they aren't hipster enough.

            • Buckshot on 21/06/2022 - 11:22
              +1

              @ankor: That's what I get for living in the inner metro suburbs of Perth and not Vaucluse :P

        • baldur on 20/06/2022 - 19:32

          I agree. This is a bargain website and people pay 700 dollars for headphones and call them a great deal.. Lol.

          • Buckshot on 21/06/2022 - 11:27

            @baldur: It's a great deal if they're usually $1300!

      • raiseyoursteaks on 19/06/2022 - 19:36
        +2

        It's been happening for generations. People can't afford rice in some countries and some are complaining about how expensive coffee.

    • HeWhoKnows on 19/06/2022 - 16:49

      People will simply buy their coffee at places with reasonable prices
      There are so many shops selling good coffee now.
      Word will get around very quickly where the best place is to buy your coffee
      That should place a cap on the cap price

      • pongky on 20/06/2022 - 11:25

        a small coffee is still hovering around low $4's here in the western suburbs of melbourne — where is it $8!??

    • srhardy on 20/06/2022 - 10:36

      241-coffeclub or nick the nesscafe43 instants (available for free everywhere if your a collector)

  • Simoneee on 18/06/2022 - 18:38
    +47

    There's always $1 7-Eleven coffee….

    • Jimothy Wongingtons on 18/06/2022 - 23:41
      +26

      Don’t forget 711 already publicly said there’s no limit on how many shots u put in for the $1 either (other than filling the cup up). Counter guy still gives me a dirty look but never pulls me up it.

      • tryagain on 19/06/2022 - 12:56

        Where did they say this, I normally do a a $1 short black and a $1 flat white in a $2 cup so I am not gaming the system.

        • baldur on 19/06/2022 - 21:43
          +1

          So if you do 3 or more you would be gaming it.

          • inasero on 22/06/2022 - 09:00

            @baldur: My ozbargainer way - dispense two double shots in a $1 cup which has been surrounded by another cup on the outside, and top up with hot water

            When back at the office, divide the contents into the two cups and top up with milk (from the workplace of course) and microwave one of them, saving the other for later…et voila! $0.50c regular flat white!

      • KBZ on 19/06/2022 - 23:08

        How do you add an extra shot or even a short black? For the 711 ive been to it only lists the size of coffee (1 ,2 ,3 dollar)?

      • Guerilla89 on 19/06/2022 - 23:23
        +7

        Dude, it's so much easier than that. Just push $3 flat white and then hit cancel when the cup is almost full. All you have to do is tap the screen during fill and then hit the "x". I used to get a $3 fill up on a $2 cup until it got to 2/3rds full and hit cancel and fill it up with cold milk so the coffee is actually drinkable.

        • McSquintus on 20/06/2022 - 09:07

          Considering I swore off 7/11 coffee this weekend due to it tasting like watered down milk, this is brilliant. Ty

          • Erwark on 20/06/2022 - 17:30

            @McSquintus: This seems to depend on the store and how the machine is maintained. The one I used to go to (until I moved) is still consistently great. The one I'm closer to now is bland as shit.

            So see what other stores are like.

        • Craze on 20/06/2022 - 14:43

          Great tip, thanks for sharing. Although personally I find having a double shot in $1 cup is a tad bit too bitter for me, so have gone back to just single shot.

    • RecklessMonkeys on 19/06/2022 - 12:48
      +3

      Perhaps that's why they can't afford to pay their staff.

    • barcer on 19/06/2022 - 19:46
      +2

      I put a shot of coffee in my hot chocolate. $2 mocha.

  • cameldownunder on 18/06/2022 - 19:02
    +41

    Give anyone an excuse ( Covid, Ukraine, Flue, 5G) and they rise price.

    • wlqrichard on 19/06/2022 - 10:34
      +5

      And majority of the time the revenue increases yearly after using all these excuses.

      • baldur on 19/06/2022 - 21:44

        If you are rich, it's so easy to be richer.

        • Daz91 on 20/06/2022 - 11:05
          +2

          99% of people would turn a million dollars into zero dollars within 5 years

          • baldur on 20/06/2022 - 11:50

            @Daz91: Not If they earned that money. If they have that money through inheritance or lotto, then you could be right.

  • Nubbin on 18/06/2022 - 19:12
    +16

    That's like 2k per year per full-time employee. Probably not a big deal for profitable businesses. Though many rich people are notorious misers so it makes sense they'd complain regardless

    • AustriaBargain on 19/06/2022 - 01:13
      +27

      Should the government be keeping minimum wage very low in order to support unprofitable business models?

      • Dack Smith on 19/06/2022 - 12:34
        +38

        Politicians get 2.75% pay rise on top of massive salaries - “we deserve it because we work hard sitting in parliament”

        CEOs get 50% pay rise and stock options on top of huge salaries - “the shareholders love us and reward us”

        Waiters getting $1 pay rise - “businesses, the economy and the world will end”

        If the minimum wage increased by $2, my god people would be pissing their pants and jumping off cliffs…… it’d be the super duper apocalypse end of days death waaaaaaahhhhhhhhhhh

        • faithdealer on 19/06/2022 - 14:50
          +4

          I don't get the whinging about the pollies' below inflation pay rise. Fair enough if you hate them but like everyone else they shouldn't get their pay cut by inflation.

          • BobLim on 19/06/2022 - 16:29
            +11

            @faithdealer: The whole structure needs to be re-baselined against comparable economies internationally - AU pollies are way overpaid

          • smartazz104 on 20/06/2022 - 12:17

            @faithdealer: Yeah but their actual, total pay is already high enough. When you look around at society and what the parties have done for the people, you wonder how much of that money they have actually earned…

            • Gladioli on 20/06/2022 - 18:46
              +2

              @smartazz104: Low pay for politicians only encourages the type who expect to gain wealth via alternative means through their role. Pay politicians well and you increase the likelihood of quality people sticking with what can be a difficult job.

              • goldiep on 20/06/2022 - 19:18
                +2

                @Gladioli: "Low pay for politicians only encourages the type who expect to gain wealth via alternative means through their role" - you're right. It's not like our politicians do anything dodgy/unethical/abuse their power…

                Where is that ICAC again…?

                • Gladioli on 20/06/2022 - 22:05

                  @goldiep: Yep, obviously there is still an opportunity for dodgy people, and a subsequent need for good oversight and good individual engagement in democracy

              • smartazz104 on 20/06/2022 - 22:45

                @Gladioli: Well we had Turnbull, who was already wealthy; that didn't work out did it…

  • sjj89 on 18/06/2022 - 19:18
    +37

    Big business is full of bs
    Most “inflation” is just caused by business increasing prices to maintain profit %
    And an employee costing $1 more per hour, vs suppliers increasing prices 10-30%…

      • sjj89 on 19/06/2022 - 09:10
        +30

        I do.
        6 ft staff

        • SBOB on 19/06/2022 - 09:20
          +93

          That's very selective hiring if they are all the same height ;)

          #imperialjokes

          • sjj89 on 19/06/2022 - 10:57
            +17

            @SBOB: We’re highly discriminatory

          • 900dollaridoos on 19/06/2022 - 12:47
            +23

            @SBOB: I support the practice. Everyone is always looking out for the little guy these days, bout time the 6ft guys caught a break.

          • blehgg on 20/06/2022 - 10:38
            +2

            @SBOB: Shelf stacking business

        • twjr on 21/06/2022 - 17:02

          That sounds like a good name for a modelling agency.

    • Vater Woods on 19/06/2022 - 12:47
      +4

      I agree, i manage a miccro business. Currently paying 20% above minimum wage.

      The pay increase does not affect much, but the cost is crazy. With one most used stock gone up 88% and due another increase in July, second most used stock gone up by 58% and another price increase letter saying another 4% in November.

      PS: Not Cafe making coffees.

    • SlavOz on 23/06/2022 - 18:52
      -1

      Small businesses were forced to shut so Woolworths and Coles can grow their sales by 500% over the last 3 years, I don't blame them for wanting to cash in on the money train.

      Why should the megacorps be the only ones who get to profit? I say, good for the cafes. They have every right to recoup the money that was stolen from them during COVID lockdowns.

      Maybe we should shut down the mega corporations for 2 weeks to flatten the wealth curve and let the small businesses catch up. Who's with me?

  • Sum-Ting Wong on 18/06/2022 - 19:19
    +26

    Perhaps it’s not just the wage of the coffee shop employees increasing.

    It may lead to an increase in the wages of:
    * the workers at the farm producing the milk
    * the workers at the company producing the cups and lids
    * the workers involved in the import of the coffee
    * the drivers delivering the supplies

    Whilst it’s unlikely that any/many of those workers would be on minimum wage, any upwards wage pressures can compound to increase a business’ costs in other ways.

    • AustriaBargain on 18/06/2022 - 19:21
      +16

      Only if the workers at the farm, the coffee cup factory, the importers, and truck drivers are all on minimum wage. And if they are all on minimum wage then that justifies the increase even more imo, because you'd be waiting for the cows to come home before they voluntarily increase those wages.

      • Soluble on 18/06/2022 - 21:19
        -1

        Are workers on awards not getting an increase? It's not just a min wage increase

      • Screamingeagle on 18/06/2022 - 22:20

        Only if the workers at the farm, the coffee cup factory, the importers, and truck drivers are all on minimum wage

        What is now stopping those workers who are not on minimum wage from saying "I want a payrise because I can go elsewhere, do an easier job for the same money?"

        • DemocracyManifest on 18/06/2022 - 23:02
          +1

          People are easy to replace in unskilled jobs, even if desperate the boss will step in and work

        • AustriaBargain on 19/06/2022 - 01:09
          +8

          If they are currently making $27 an hour, then I guess they are welcome to quit their jobs and starting making $21.05 an hour making hundreds of coffees all day with steam in their face?

    • RecklessMonkeys on 19/06/2022 - 12:50

      Do any of these guys drink coffee?

  • boomramada on 18/06/2022 - 19:23
    +1

    What size coffee are we talking about ?

    • Jugganautx on 18/06/2022 - 19:28
      +1

      Vente

      • Eeples on 18/06/2022 - 22:10
        +1

        Vente = 20

        Still not sure of the size.

        • pformag on 19/06/2022 - 18:12

          20oz

          • FrozenFred on 19/06/2022 - 22:45
            +5

            @pformag: Whats that. I only know mills and litres

            • zestorer on 20/06/2022 - 14:07
              +2

              @FrozenFred: 20oz is a pint. Unless you're in south Australia where its 15 oz. If you order a a schooner at a pub you get 15oz. Unless you're in south australia where you'll get a 10oz. What happens if you want a 20oz beer in S.A.? You ask for an Imperial Pint.

              20oz is about 568ml. You're welcome.

    • pharkurnell on 18/06/2022 - 19:56
      +5

      Garbage bin size with a paper straw from McCrap

    • jizmo on 18/06/2022 - 22:40

      About $8 worth but shit and over priced

  • rektrading on 18/06/2022 - 19:49
    +39

    Easy fix.

    Stop spending money on coffee. The shops that don't adapt will go broke.

    • Bargain-er on 19/06/2022 - 08:50
      +6

      My local cafe raised 20% price n i had been supporting them during covid. Sub par customer service so now i make my own cfe so it is a very possible scenario. I would still support them if their service was better tho. Now i just drive a bit further if I want a feel good coffee.

      • spacemannn on 19/06/2022 - 23:32
        +2

        Why would you support a store with sub par customer service to begin with? They either improve or fail and another store will take their place, new store will make better coffee and have better customer service. If not, they'll also fail. No one should be obligated to support crappy stores just because they're "local". One aspect of capitalism I really like.

        • poglet on 21/06/2022 - 15:01
          +1

          It's not made clear from the post but it sounds like Bargain-er is saying that the store had good service when he starting going there, so he was happy to support them. Then at some point the service became subpar so he made a decision to stop supporting them.

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