This week i decided to talk about the environment of San Francisco that is currently affecting the business sector. As of July 1st, the minimum wage has increased to 14 dollars an hour. By July 1st, 2018, the minimum wage will be increased again to 15 dollars an hour. This has completely changed the way businesses run and a lot of employees are losing their jobs. A big industry that has been affected by this are restaurants. About 60 restaurants have already closed down in the Bay Area.
The increase in the minimum wage takes tremendous amounts of profit away from companies. Even though it sounds minimal because it is a dollar an employee an hour, the effects are tremendous in the long run. A lot of companies are forced to increase their prices for their services. This can lead to dissatisfied customers and a loss in recurring revenue. There is ultimately a chain reaction from this movement.
In regards to human rights, the wage increase in San Francisco can be attributed to the ridiculously high costs of living in the city. Fourteen dollars is almost doubled the minimum wage from where I am from in PA where the minimum wage is 7.50. However, a small studio apartment in San Francisco can be anywhere from 2000-3500 dollars a month. It’s amazing to think about how different costs of living are in different areas of the nation. It does not make sense to live in the city unless you are making at least 75-100k a year.
The high minimum wage will affect pricing throughout an entire business model and hopefully these companies can adjust to this change in a productive manner.
In regards to my experience, I am stunned it is already July 2nd. It feels like the month of June really flew by. My supervisor Chris the VP of national partnerships wants me to present to him, Tad the CEO of Laundry Locker, and Arik the CEO of Luxer One and Drop Locker. I am extremely nervous for it. I am also excited to provide them with my analysis/suggestions to help them with their companies future.
Until next week,