LAKE WORTH- Last week, one of my favorite hamburger joints closed its doors, another victim of the ongoing “recession.”
http://www.palmbeachpost.com/search/content/business/epaper/2009/05/11/a4b_fuddruckers_0512.html.
I really liked to take the family to Fuddruckers in Wellington. When I read about the restaurant’s demise, it saddened me. It was reasonably priced, there was a great variety of burgers, including veggie, ostrich, and buffalo burgers, and the place had a nice, family atmosphere. When we went there, it was always packed with diners. www.fuddruckers.com
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A fine part of “Americana” is being lost in this “recession” as thousands of “mom and pop” eateries and small franchises nationwide are being driven out of business by high food prices and decreased patronage. They can’t compete with large chains like McDonald’s or Denny’s which operate at much lower margins.
Drive up any main street or suburban thoroughfare in any town or city and you will see empty buildings that once hosted traditional family restaurants, burger joints, “diners, drive-ins, and dives.” It’s very sad.
What was very interesting to me was that a spokesman for Fuddruckers was quoted as saying that the restaurant “got tired of breaking even. They were working real hard to break even."
The restaurant was obviously in business to make money and return a profit on investment. But the statement sounded kind of stupid to me. Why would a restaurant, employing over 40 people, not want to stay in business if they were not losing money? In my mind, if they were staying afloat during very hard economic times, they were actually successful and had a great future. They were also keeping 40 workers gainfully employed.
But that does not matter in this day and age, there is no social or moral responsibility toward employees-business is business, period.
Or open until we close for good?
But there is a cost in this type of thinking to all of us. Forty employees losing their jobs, many of them college students, in fact will have a big impact not only on the individuals being put out of work, but to the viability and standard of living of the local community.
The only answer these days being touted by the Obama Administration for saving small businesses is to reestablish the flow of credit from large financial institution to them (and future tax cuts for small businesses, but they are dwarfed by other tax increases that will hit small businesses).
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/26/AR2009042602838.html
But cheaper credit is not the answer. The whole key to economic recovery to this sector is ending layoffs and closures by providing immediate tax incentives, not more credit, to allow for survival and incremental investment.
Temporary emergency tax breaks and incentives to endangered small businesses would lower margins and help business owners make ends meet.
Furthermore, if wholesale suppliers, landlords and utilities were given tax incentives to pass on in lower costs to endangered small businesses, many distressed businesses could survive these hard times.
Such measures could save thousands of small businesses across the country, including mom and pop restaurants, and be the true jumpstart to economic recovery. It’s not too late.
If the owners of Fuddruckers had been given temporary or emergency tax breaks and incentives after qualifying under parameters that would measure their future viability, they may have been able to achieve the little profit they needed to justify staying open.
Interestingly, a second news item appeared the next day that this Fuddruckers franchise was not paying its workers over $12,000 in wages due to them. All of a sudden too, the owners were now losing $2 million on their investment and were going to file bankruptcy.
So, not only are the workers losing their jobs, but they are getting stiffed out of their wages they had earned. Again, business is business, even if you steal from your workers.
http://www.palmbeachpost.com/search/content/business/epaper/2009/05/13/0513fuddruckers.html.
Emergency tax incentives at all levels of government would also be a start toward promoting responsible business behavior in the future. It is long overdue. There is nothing wrong with rewarding a business owner with lower taxes if they make a commitment not only to building a business, but also toward ensuring their employee’s long term employability and well-being.
Also, a great “change” would be to make the repayment of worker’s wages not paid the first priority in any business bankruptcy. They earned the money and should be paid it.
If you get a stimulus check from the government, spend it at a local restaurant. Order a hamburger and fries, but get a glass of water instead of a soda. Then, give your server a bigger tip with the difference saved. It may be his or her last night of employment there.
That is, of course, if you are not heading to McDonald’s for the only available hamburger in town.
Read Kurly's Belated Mother's Day Message
Check out Kurly's kommentary on the recent Marxist interpretation of historical American History and Presidents
Celebrate Spring reading "Spring Tribute to Tommy"
http://www.palmbeachpost.com/search/content/business/epaper/2009/05/11/a4b_fuddruckers_0512.html.
I really liked to take the family to Fuddruckers in Wellington. When I read about the restaurant’s demise, it saddened me. It was reasonably priced, there was a great variety of burgers, including veggie, ostrich, and buffalo burgers, and the place had a nice, family atmosphere. When we went there, it was always packed with diners. www.fuddruckers.com
Follow Kurly's Daily Komments on Twitter
Read this week's Kurlykomments tweets below
A fine part of “Americana” is being lost in this “recession” as thousands of “mom and pop” eateries and small franchises nationwide are being driven out of business by high food prices and decreased patronage. They can’t compete with large chains like McDonald’s or Denny’s which operate at much lower margins.
Drive up any main street or suburban thoroughfare in any town or city and you will see empty buildings that once hosted traditional family restaurants, burger joints, “diners, drive-ins, and dives.” It’s very sad.
What was very interesting to me was that a spokesman for Fuddruckers was quoted as saying that the restaurant “got tired of breaking even. They were working real hard to break even."
The restaurant was obviously in business to make money and return a profit on investment. But the statement sounded kind of stupid to me. Why would a restaurant, employing over 40 people, not want to stay in business if they were not losing money? In my mind, if they were staying afloat during very hard economic times, they were actually successful and had a great future. They were also keeping 40 workers gainfully employed.
But that does not matter in this day and age, there is no social or moral responsibility toward employees-business is business, period.
Or open until we close for good?
But there is a cost in this type of thinking to all of us. Forty employees losing their jobs, many of them college students, in fact will have a big impact not only on the individuals being put out of work, but to the viability and standard of living of the local community.
The only answer these days being touted by the Obama Administration for saving small businesses is to reestablish the flow of credit from large financial institution to them (and future tax cuts for small businesses, but they are dwarfed by other tax increases that will hit small businesses).
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/26/AR2009042602838.html
But cheaper credit is not the answer. The whole key to economic recovery to this sector is ending layoffs and closures by providing immediate tax incentives, not more credit, to allow for survival and incremental investment.
Temporary emergency tax breaks and incentives to endangered small businesses would lower margins and help business owners make ends meet.
Furthermore, if wholesale suppliers, landlords and utilities were given tax incentives to pass on in lower costs to endangered small businesses, many distressed businesses could survive these hard times.
Such measures could save thousands of small businesses across the country, including mom and pop restaurants, and be the true jumpstart to economic recovery. It’s not too late.
If the owners of Fuddruckers had been given temporary or emergency tax breaks and incentives after qualifying under parameters that would measure their future viability, they may have been able to achieve the little profit they needed to justify staying open.
Interestingly, a second news item appeared the next day that this Fuddruckers franchise was not paying its workers over $12,000 in wages due to them. All of a sudden too, the owners were now losing $2 million on their investment and were going to file bankruptcy.
So, not only are the workers losing their jobs, but they are getting stiffed out of their wages they had earned. Again, business is business, even if you steal from your workers.
http://www.palmbeachpost.com/search/content/business/epaper/2009/05/13/0513fuddruckers.html.
Emergency tax incentives at all levels of government would also be a start toward promoting responsible business behavior in the future. It is long overdue. There is nothing wrong with rewarding a business owner with lower taxes if they make a commitment not only to building a business, but also toward ensuring their employee’s long term employability and well-being.
Also, a great “change” would be to make the repayment of worker’s wages not paid the first priority in any business bankruptcy. They earned the money and should be paid it.
If you get a stimulus check from the government, spend it at a local restaurant. Order a hamburger and fries, but get a glass of water instead of a soda. Then, give your server a bigger tip with the difference saved. It may be his or her last night of employment there.
That is, of course, if you are not heading to McDonald’s for the only available hamburger in town.
Read Kurly's Belated Mother's Day Message
Check out Kurly's kommentary on the recent Marxist interpretation of historical American History and Presidents
Celebrate Spring reading "Spring Tribute to Tommy"
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