# How much extra would you/the U.S. pay for good service and worker wages? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [November 15, 2012, 9:37pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131 "2012-11-15T21:37:35Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Leaper](https://avatars.discourse-cdn.com/v4/letter/l/4bbf92/32.png) [@Leaper](https://boards.straightdope.com/u/Leaper)\ **Post date:** [November 15, 2012, 9:37pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/1 "2012-11-15T21:37:35Z")
Many CEOs, especially of chain restaurants, have made statements and taken actions in response to the election last week, including announcing price hikes, layoffs, and limitation of hours, saying it’s due to Obamacare and various other issues that the President campaigned for. This has, obviously, spurred discussion, and a point made elsewhere made me wonder: suppose a restaurant (or even a chain of restaurants - or grocery stores or gas stations or whatever) charged more than their equivalents/equivalent chains, but advertised, proudly and strongly, that this was because they paid better wages and benefits to its workers. Perhaps they would even directly compare this to other places, and argue that you’ll get better service with them because their workers are happier and healthier. Would you go out of your way to patronize such a place? Would the general public? How much more would you be willing to pay in goods and services? How much more would the general public? Assume any truth you like for claimed change in service due to policy, but make your assumption, and reasoning for that assumption, clear. ---
**Author:** ![wheresmymind](https://avatars.discourse-cdn.com/v4/letter/w/91b2a8/32.png) [@wheresmymind](https://boards.straightdope.com/u/wheresmymind)\ **Post date:** [November 15, 2012, 10:23pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/2 "2012-11-15T22:23:19Z")
Probably not much, because there are already competitive restaurant chains that offer employee benefits without making a big deal about it all the time. [Here’s](http://www.isaacsdeli.com/careers.asp) [two](http://www.longhornsteakhouse.com/employment/teammember.asp) from off the top of my head. One’s a small chain of about 2 dozen locations in central PA, the other’s a huge chain with hundreds of locations nationwide. I feel if bragging about your employee benefits became a thing, a bunch of restaurants like these would just come out and say “Hey, we’ve been giving our employees benefits all along, so we can treat our workers well without having to raise prices like those other guys,” thus stealing the thunder from all the other eateries that came out and said “Hey, entrees are a dollar more now because we have to offer our employees health insurance.” ---
**Author:** ![Enkel](https://avatars.discourse-cdn.com/v4/letter/e/df705f/32.png) [@Enkel](https://boards.straightdope.com/u/Enkel)\ **Post date:** [November 15, 2012, 11:00pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/3 "2012-11-15T23:00:44Z")
Hey… there’s a Longhorn near me. I think I’m going to try them this week. Thanks for posting the link! I personally already shop local for anything that I can (most groceries, many tools/equipment that I need, most clothing). Since I don’t use the importers and cheap mega stores, I can’t tell you how much extra I’m paying except that I know I’m getting meat from the butcher for at least $0.10 less per pound than even the closest pricing among the box stores (oh, and mine has been processed in a small, family owned, animal friendly shop that is very, very clean - so I’d be willing to bet that I’m getting less ecoli, etc on my products than the mass butchered crap sold at the box stores… and it is all locally grown and grass fed) ---
**Author:** ![Throatwarbler\_Mangrove](https://avatars.discourse-cdn.com/v4/letter/t/8c91f0/32.png) [@Throatwarbler\_Mangrove](https://boards.straightdope.com/u/Throatwarbler_Mangrove)\ **Post date:** [November 16, 2012, 4:33am UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/4 "2012-11-16T04:33:46Z")
Why is there a need for this sort of thing? 5,000 years ago people figured out it would be easier to just have the government collect a proportionate amount from each of the businesses and use that to help the workers with their healthcare or whatever. That way, workers get healthcare, restaurants can concentrate on making delicious food, everyone wins. ---
**Author:** ![Wesley\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wesley_clark/32/20581_2.png) [@Wesley\_Clark](https://boards.straightdope.com/u/Wesley_Clark)\ **Post date:** [November 16, 2012, 4:40am UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/5 "2012-11-16T04:40:14Z")
The low wage workforce seems like a small % of the budget of most large companies. So I would assume a living wage with benefits would drive up costs 1-5% or so. I would be willing to eat that. Kroger pays their workers better than Marsh, so I try to frequent Kroger. But the prices at Kroger are actually better. I think every dollar/hour in wages and benefits for the low wage workforce at walmart would drive up prices by 0.5%. I think. > **[Study: $12 Minimum Wage Would Have Negligible Effect On Walmart Prices](https://www.huffpost.com/entry/walmart-pay-worker-minimum-wage_n_851115)** > > Study: $12 Minimum Wage Would Have Negligible Effect On Walmart Prices ---
**Author:** ![wheresmymind](https://avatars.discourse-cdn.com/v4/letter/w/91b2a8/32.png) [@wheresmymind](https://boards.straightdope.com/u/wheresmymind)\ **Post date:** [November 16, 2012, 5:34am UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/6 "2012-11-16T05:34:57Z")
> [@Throatwarbler\_Mangrove](#): > > Why is there a need for this sort of thing? 5,000 years ago people figured out it would be easier to just have the government collect a proportionate amount from each of the businesses and use that to help the workers with their healthcare or whatever. That way, workers get healthcare, restaurants can concentrate on making delicious food, everyone wins. I don’t want to come off as one of those jerks who’s constantly yelling “Cite?” but could you point me to a source backing up your claim that socialized healthcare has been common in civilizations since the early Bronze Age? ---
**Author:** ![Acid\_Lamp](https://avatars.discourse-cdn.com/v4/letter/a/d6d6ee/32.png) [@Acid\_Lamp](https://boards.straightdope.com/u/Acid_Lamp)\ **Post date:** [November 16, 2012, 1:35pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/7 "2012-11-16T13:35:54Z")
Yes I would go out of my way to patronize such an establishment, and i would be willing to pay as much as 10-15% more to do so. ---
**Author:** ![Crafter\_Man](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/crafter_man/32/458_2.png) [@Crafter\_Man](https://boards.straightdope.com/u/Crafter_Man)\ **Post date:** [November 16, 2012, 1:42pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/8 "2012-11-16T13:42:34Z")
> [@Leaper](#): > > Would you go out of your way to patronize such a place? No. What purpose would it serve? ---
**Author:** ![Crafter\_Man](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/crafter_man/32/458_2.png) [@Crafter\_Man](https://boards.straightdope.com/u/Crafter_Man)\ **Post date:** [November 16, 2012, 1:46pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/9 "2012-11-16T13:46:43Z")
> [@Wesley\_Clark](#): > > Kroger pays their workers better than Marsh, so I try to frequent Kroger. But the prices at Kroger are actually better. Does that mean Marsh has a higher profit margin? If so, I would rather shop at Marsh than Kroger. When choosing between companies, I would rather give my business to the one that generates higher profits for the owners. ---
**Author:** ![Missy2U](https://avatars.discourse-cdn.com/v4/letter/m/3bc359/32.png) [@Missy2U](https://boards.straightdope.com/u/Missy2U)\ **Post date:** [November 16, 2012, 2:19pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/10 "2012-11-16T14:19:47Z")
I’m sure this isn’t going to be a popular opinion, but frankly, I go where it’s the absolute cheapest for me. Period. I do not have discretionary income that would allow me to do otherwise. I would not pay a premium for someone else’s benefits. Sorry if that seems cold, but it’s the truth. ---
**Author:** ![puddleglum](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/puddleglum/32/137_2.png) [@puddleglum](https://boards.straightdope.com/u/puddleglum)\ **Post date:** [November 16, 2012, 2:29pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/11 "2012-11-16T14:29:57Z")
I would not pay anymore for this. When I worked in a restaurant, neither I nor my coworkers seemed deserving of charity. Nowadays if someone gives me good service I pay them out of my own pockets with a bigger tip, I don’t expect the business owner to do it for me. ---
**Author:** ![Machine\_Elf](https://avatars.discourse-cdn.com/v4/letter/m/82dd89/32.png) [@Machine\_Elf](https://boards.straightdope.com/u/Machine_Elf)\ **Post date:** [November 16, 2012, 3:19pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/12 "2012-11-16T15:19:53Z")
> [@Leaper](#): > > Would you go out of your way to patronize such a place? Would the general public? How much more would you be willing to pay in goods and services? How much more would the general public? Assume any truth you like for claimed change in service due to policy, but make your assumption, and reasoning for that assumption, clear. As a nation, we already support this to a limited degree with the enforcement of various labor laws, including minimum wage and minimum age. Some companies are promoting additional good treatment of employees with concepts like [fair trade](http://en.wikipedia.org/wiki/Fair_trade); people who buy fair-trade goods have basically chosen to pay more than market price for a product with the explicit knowledge that the extra cost goes toward (among other things) better treatment for the producers. However, paying extra for better treatment of employees is really only an option for people who have plenty of disposable income - and that’s not many folks these days. In my town (Ann Arbor) the two Whole Foods stores have plenty of customers, but I think the vast majority of people in this area shop at stores that compete exclusively on price, e.g. Kroger and Meijer. ---
**Author:** ![silenus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/silenus/32/166_2.png) [@silenus](https://boards.straightdope.com/u/silenus)\ **Post date:** [November 16, 2012, 3:40pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/13 "2012-11-16T15:40:27Z")
What **Acid Lamp** said. I would go out of my way to patronize such a place. Luckily, In-N-Out is already one of them! ---
**Author:** ![billfish678](https://avatars.discourse-cdn.com/v4/letter/b/7bcc69/32.png) [@billfish678](https://boards.straightdope.com/u/billfish678)\ **Post date:** [November 16, 2012, 4:07pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/14 "2012-11-16T16:07:14Z")
> [@Missy2U](#): > > I’m sure this isn’t going to be a popular opinion, but frankly, I go where it’s the absolute cheapest for me. Period. I do not have discretionary income that would allow me to do otherwise. I would not pay a premium for someone else’s benefits. Sorry if that seems cold, but it’s the truth. Thats fair enough. But there is difference here. You ain’t doing it because you are cheap or uncaring. You are doing it because you are poor. And even then it is a matter of degree. In another thread about Papa John’s Pizza owner having a tizzy about providing health care somebody claimed it would cost an extra 15 cents or so per pizza to give the pizza delivery guys health insurance. Now, is your budget so tight that 15 cents on say a 15 dollar pizza is going to break the bank? And or would you calculate your tip down to a few pennies to make sure you didn’t overpay or underpay? Note these questions aren’t so much directed at you as the population at large out there. Also. If people/employers who could pay employees in general a bit more DID do so people like you might not be on such a tight budget in the first place 🙂 ---
**Author:** ![Enkel](https://avatars.discourse-cdn.com/v4/letter/e/df705f/32.png) [@Enkel](https://boards.straightdope.com/u/Enkel)\ **Post date:** [November 16, 2012, 4:16pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/15 "2012-11-16T16:16:35Z")
> [@puddleglum](#): > > When I worked in a restaurant, neither I nor my coworkers seemed deserving of charity. Why are health benefits charity for someone working in a restaurant but not charity for someone working in a higher paid profession? Do restaurant workers earn enough tips to cover open market health insurance? That’s a heck of a lot of tips. ---
**Author:** ![Hermitian](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hermitian/32/470_2.png) [@Hermitian](https://boards.straightdope.com/u/Hermitian)\ **Post date:** [November 16, 2012, 4:22pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/16 "2012-11-16T16:22:07Z")
Chick-fil-a does this. They hire better staff, pay them more, and customers get better service. Apparently it is successful, even being closed a day of the week. People are willing to pay a premium for it. ---
**Author:** ![Machine\_Elf](https://avatars.discourse-cdn.com/v4/letter/m/82dd89/32.png) [@Machine\_Elf](https://boards.straightdope.com/u/Machine_Elf)\ **Post date:** [November 16, 2012, 4:36pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/17 "2012-11-16T16:36:07Z")
> [@Enkel](#): > > Why are health benefits charity for someone working in a restaurant but not charity for someone working in a higher paid profession? Because well-qualified restaurant workers are easy to attract, even when you offer a low wage and no health benefits. If an employer is offering health benefits in that situation, it’s because they’re a nice guy, not because it’s necessary. For other professions - doctor, lawyer, engineer, etc. - qualified applicants are rarer; it becomes necessary to offer higher salary and health (and other) benefits in order to attract applicants. ---
**Author:** ![Sattua](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sattua/32/11906_2.png) [@Sattua](https://boards.straightdope.com/u/Sattua)\ **Post date:** [November 16, 2012, 4:54pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/18 "2012-11-16T16:54:29Z")
My answer is no, I wouldn’t patronize a business just because it treats its employees better. If that better treatment results in a better customer service experience, then yes I would go there. ---
**Author:** ![Thudlow\_Boink](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/thudlow_boink/32/320_2.png) [@Thudlow\_Boink](https://boards.straightdope.com/u/Thudlow_Boink)\ **Post date:** [November 16, 2012, 4:58pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/19 "2012-11-16T16:58:08Z")
> [@puddleglum](#): > > I would not pay anymore for this. When I worked in a restaurant, neither I nor my coworkers seemed deserving of charity. Nowadays if someone gives me good service I pay them out of my own pockets with a bigger tip, I don’t expect the business owner to do it for me. Is it “charity” if your employer pays you more (or gives you more benefits) than the bare minimum they could get away with giving you? ---
**Author:** ![Grrr](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/grrr/32/146_2.png) [@Grrr](https://boards.straightdope.com/u/Grrr)\ **Post date:** [November 16, 2012, 5:02pm UTC](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131/20 "2012-11-16T17:02:51Z")
Yes. Forget about health care. I’m all for going the European route. Where in, the owners pay the servers a decent wage, the customer pays a higher price and nobody has to worry about tips. [Next page](https://boards.straightdope.com/t/how-much-extra-would-you-the-u-s-pay-for-good-service-and-worker-wages/641131.md?page=2)