How Small Business Owners Can Overcome the Challenges of the Minimum Wage Hike

Small business owners often feel a greater impact from the minimum wage hike than larger corporations. Dilemmas such as absorbing increased operational costs pose as serious obstacles to running a business smoothly. Fast Casual suggests six steps to alleviate the negative impact imposed by the minimum wage increase:

  1. Understand profit margins, projections and business requirements to ensure profitability
  2. Determine permanent hiring vs. contracting decisions for staffing needs
  3. Make good hiring decisions— mistakes can be costly since training/onboarding new employees is a considerable investment
  4. Invest in employees— turnover decreases productivity and increases business costs
  5. Be sure to employ time and cost saving tools to standardize back office tasks. Consider outsourcing to easy affordable services that allow you to focus on growing business not administrative functions
  6. Research competition and adjust price accordingly

Why You Should Put Your Employees First

High school dropout turned restaurant mogul Cameron Mitchell, of Mitchell’s/Columbus Fish Market and Mitchell’s/Cameron’s Steakhouse (sold to Ruth’s Hospitality Group for $92 million), details his journey from the lazy cook in the kitchen to one of the hardest working restaurateurs, reports Fast Casual.

In his keynote speech at this year’s North American Pizza and Ice Cream Show in Columbus, Ohio, Mitchell outlines his priorities when he first started his own restaurant group back in 1992. He explained the importance of first highlighting the company culture and values. “There are two components to opening a successful restaurant,” Mitchell claims. “Number one is having a good strategy. I made  a lot of mistakes, but I surrounded myself with smart people. Number two— the most important piece— is the company’s culture and values.” His core values are:

Two core values:

  1. The associates come first. Mitchell says, “The guest is not the most important to us. I know this isn’t our industry standard way of thinking, but I will tell you in my business we take care of our people. It’s a triangular effect. If we take care of our associates, they take care of our guests, and our guests will take care of our company,” Mitchell said, adding there are “programs and policies” in place to reinforce this value every day.
  2. The answer is always yes. Mitchell’s company’s training policy declares, “The answer is yes is the backbone of our company.” The story that inspired him to ingrain this value is the time is son ordered a milkshake and both the server and manager said “no.” In response, Mitchell ordered a chocolate milk and a la mode ice cream and requested they be blended together.