Sir Royalty Income Fund T.SRV.UN

Minimum wage increase

[Robsopinion]

Doug Ford announced a minimum wage increase yesterday effective Jan 1. A huge part of it was eliminating the server wage "discount" this will put extreme pressure on already struggling restaurants including SIR. 

Now this is two sided, on the one side we need the parent company solvent to continue to pay royalties. The second side though is that the only real response to this will be to raise menu prices. It also puts more money into the pockets of restaurant employees, who, from personal experience spend the highest percentage of their incomes in restaurants and bars. 

since we take our cut off the top line sales, as long as SIR remains solvent (likely) we will be able to drive more top line sales, and therefore the royalties that we receive. 

I sure am glad to be kn the side that earns off the top line than the one that earns off the bottom though lol.

[babedinkleman]

This post has been removed in accordance with Community Policy

[Robsopinion]

You are wrong about the make or break restaurants because of the $2.45. Restaurants have always operated on a razor thin margin. That is a huge jump that will be very difficult to absorb. 

[babedinkleman]

This post has been removed in accordance with Community Policy

[Robsopinion]

As much as the government says it wants to control inflation, behind the scenes they know they need it. As wages increase (the guy making $15.00 per hour now, will not be happy with that once that is the new minimum wage, so it's not just the people making minimum that get the wage increase it almost always flows through to most other workers) so do prices. The higher the payrolls the higher

[bcsc]

That is an oversimplification of how the industry currently operates. The vast majority of restaurants pool all tips and in many cases the servers are responsible for paying the percentage to the back of house whether or not they recieve any tip at all. One can only hope that this is the first step in acknowledging that Serving can and should be considered a profession. God knows the difference a

[Robsopinion]

You are very correct about Tip pools and sharing. Typically these can be between 3% and 7%, and this rate comes off of the servers sales total regardless of actual tip received.  I had university educated servers and bartenders in the past pulling in 150k per year and paying tax on 40k worth. That being said, they were amazing staff, who not only gave an amazing guest experience, but also