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Can a worker-owned restaurant work?

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Re: Can a worker-owned restaurant work?

#261

Post by nraynaud »

asdff wrote: post #222

This model really should be expanded to just about everything. Revenue per employee ratio at Apple is $2.4 million a person or so. If that company were to shift from the present shareholder model to a cooperative model, its not hard to imagine labor seeing some substantial gains. Having more money in the part of the economy that actually circulates more of their income would probably bring on wider economic benefits…

It’s a bit complicated, those companies can’t really borrow money (because the bank can’t seize the capital and fire the management of things go south). A friend of mine had her coop buy its HQ, that means the workers/owners had to personally borrow the money.

Re: Can a worker-owned restaurant work?

#262

Post by MuffinFlavored »

exabrial wrote: post #88

Yes, absolutely, but there are pitfalls: * Somehow finances have to work, which is usually a harsh reality for some. Ex: Hey we can't pay workers $250/hr without raises prices to above what customers are willing to pay * Consumers despite "Least common denominator" which is often the result of "design by committee". Usually consumers are after something niche, unique, artistic, and creative, which is the inspiration…

> * Somehow finances have to work, which is usually a harsh reality for some. Ex: Hey we can't pay workers $250/hr without raises prices to above what customers are willing to pay

This is one of the most interesting parts of business to me. How do a bunch of people below the "head honcho/top dog" collectively agree "you're right, I don't selfishly look out for myself and think I'm worth $99999999/hr, that person does more than me and their skillset is worth more than mine, I will bow out and not contend to ask for more than them an hour"

From there, you get hierarchy

You'll have one person paid the most at the top, and it trickles down

In worker owned, the people at the bottom... why are they ok with being paid "relatively" the least? Why don't they feel like their work is entitled to as much as those making more than them? How are they ok with not looking out for their own self interest at all times?

Re: Can a worker-owned restaurant work?

#263

Post by klooney »

mitchbob wrote: post #237
the_af wrote: post #217

The pizza restaurant (gourmet pizza, not crap) around the corner where I live is workers owned. The previous owner went bankrupt and left his employees hanging out to dry, so they took ownership of the place. Not sure about the legal situation (e.g. whether they bought the restaurant from the owner or what) but it's been workers owned for the past few years and doing well, judging by how full it always is. I eat and…

Zachary's? https://zacharys.com/

https://cheeseboardcollective.coop/pizza/ and https://www.arizmendibakery.com are coops.

Re: Can a worker-owned restaurant work?

#264

Post by hot_gril »

magicalist wrote: post #245
hot_gril wrote: post #184

Earlier quoted context omitted.

Here's the reduced-down version: You get some stake for free when you join, it entitles you to a fraction of the profits while you're there, and you lose it if you quit or get voted off the island according to some bylaws. Stake also gives you voting power for hiring new employees (including managers), and how much stake to give them. And nobody can buy shares, especially those who aren't employees. To simplify thing…

The takes in this thread are so funny. Oh no, what if they have too much money and there aren't owners siphoning it off disproportionate to their value? People might fight over it! Or they might have to plan on steady operating income, but how can they do that if they didn't go through the rigorous schooling that the ownership class does?

Non-employee owners vs employee owners taking extra profits, same problem. Difference is the un-democratic owners can more easily reinvest to expand the business instead, and in many cases they do.

Re: Can a worker-owned restaurant work?

#266

Post by bentt »

I'd prefer the term Owner-Worked... because once you're an owner, you shouldn't be able to just think of yourself as a "worker". It's about taking responsibility for more than your assigned role. That's what owners do.

Re: Can a worker-owned restaurant work?

#267

Post by sudosysgen »

Aunche wrote: post #195
SamWhited wrote: post #107

Earlier quoted context omitted.

In my experience the opposite is almost always true: > Somehow finances have to work, which is usually a harsh reality for some At most places I've been involved in the workers are more careful with money because they are standing together and want the business to succeed. They have transparency into the finances, so they know what's possible and try to make sure not to go overboard. > Consumers despite "Least common…

> At most places I've been involved in the workers are more careful with money because they are standing together and want the business to succeed. This doesn't contradict anything GP said. Worker owners are careful with company money because they have to be, due to being invested into it. That's a responsibility that not everyone wants, especially when an organization approaches the scale of tragedy of the commons.…

Worker co-ops aren't less likely to expand because of risk, it's because more employees diluted the pie, so they don't have an incentive to grow for the sake of growth, but only if there are significant economies of scale or social need.

Re: Can a worker-owned restaurant work?

#268

Post by myman »

Reads like a convoluted business which has rolled into a near scam. $1,000 to own a part of the business. That business doesn't generate profits...

Are they surviving because people inject $1,000 of their money to the business?

Re: Can a worker-owned restaurant work?

#269

Post by [deleted] »

ROTMetro wrote: post #163
carabiner wrote: post #114

Earlier quoted context omitted.

What is "reasonable," what is "fair." These words signify a death spiral in wage discussions. The reality is that businesses cannot increase prices forever and have a market that still wants to pay them. If I sell burgers for $10k and they're shit burgers then I'd make no money and have to shut it all down. Just like my friend who shut down his cabinetry business because he was paying his employees more than himself…

What you are referring to is a zombie business. It does not offer enough value so it can only survive via low wages, something that is not guaranteed and is externally controlled. I think banks should does including this measure when it comes to financing. If have to pay your people below market wages to survive you don't have a business, you have a zombie that can't only survive as a parasite on others. Figure out h…

[deleted]

Re: Can a worker-owned restaurant work?

#270

Post by popinman322 »

MuffinFlavored wrote: post #262
exabrial wrote: post #88

Yes, absolutely, but there are pitfalls: * Somehow finances have to work, which is usually a harsh reality for some. Ex: Hey we can't pay workers $250/hr without raises prices to above what customers are willing to pay * Consumers despite "Least common denominator" which is often the result of "design by committee". Usually consumers are after something niche, unique, artistic, and creative, which is the inspiration…

> * Somehow finances have to work, which is usually a harsh reality for some. Ex: Hey we can't pay workers $250/hr without raises prices to above what customers are willing to pay This is one of the most interesting parts of business to me. How do a bunch of people below the "head honcho/top dog" collectively agree "you're right, I don't selfishly look out for myself and think I'm worth $99999999/hr, that person does…

Everyone is different and has different motivations. We don't all think the same way, either.

Some workers just want a stable, sane work environment and are willing to compromise on pay for other benefits. These same people are typically willing to let others do more work for more pay because it makes their own lives easier.

One possible approach: you could do an exercise where everyone gets $N imaginary dollars and they can bid to not do certain tasks. The bid against each task is then the compensation for that task.

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