If other restaurants are getting away with a certain level of exploitation then there’s not a significant monetary incentive for a newcomer to exploit less
Of course there is! The less money the owner takes, the more is available for dropping prices and hiring more easily. Dropping prices brings more business, and paying workers more means better, happier workers.
Businesses compete for business. Improving their offering compared to their competition results in more business going to them.
I don’t know how you can say there’s no incentive here. Do you not see a marketplace as a place of competition, which generates incentives to improve one’s offering?
Why do so many fast food places only pay minimum wage and throw a hissy fit whenever someone proposes raising it? Why don’t they simply pay their workers more?
Cause the workers are expendable and their exploitation has been normalized to the point that there is no monetary incentive to pay more. Yes, there are restaurants that do pay more, but it’s often driven from some other ideology, not just trying to make the most money, and most consumers honestly don’t care. The same consumer will sometimes visit McDonald’s, Chik fil a, or In n Out regardless of workers pay, hell I even know a few gay people that turn a blind eye to owner politics when visiting restaurants. 'Cause at the end of the day people are turning up for convenience or to satiate a particular craving, not because one company pays more.
Of course there is! The less money the owner takes, the more is available for dropping prices and hiring more easily. Dropping prices brings more business, and paying workers more means better, happier workers.
Businesses compete for business. Improving their offering compared to their competition results in more business going to them.
I don’t know how you can say there’s no incentive here. Do you not see a marketplace as a place of competition, which generates incentives to improve one’s offering?
Why do so many fast food places only pay minimum wage and throw a hissy fit whenever someone proposes raising it? Why don’t they simply pay their workers more?
Cause the workers are expendable and their exploitation has been normalized to the point that there is no monetary incentive to pay more. Yes, there are restaurants that do pay more, but it’s often driven from some other ideology, not just trying to make the most money, and most consumers honestly don’t care. The same consumer will sometimes visit McDonald’s, Chik fil a, or In n Out regardless of workers pay, hell I even know a few gay people that turn a blind eye to owner politics when visiting restaurants. 'Cause at the end of the day people are turning up for convenience or to satiate a particular craving, not because one company pays more.