A few years ago I was staying at an AirBnB in Carlsbad/Oceanside
A few years ago I was staying at an AirBnB in Carlsbad/Oceanside. I wandered down to a little coffee shack/breakfast place across the street from the beach. As I sat out front, enjoying my cup of coffee, I thought, "this is exactly what I want to do with my retirement... I want to buy this shack and pay some 17 to 20 year olds to make people coffee and pancakes". While that sounded great in my vacationing mindset, the reality is far more soul-crushing. Upon returning home I started doing some back of the napkin math on what it'd actually take to run a place like that. 3 or 4 employees at $20 an hour (this is California), plus insurance, plus... well all the other stuff it takes to employ a human. That's before I even consider food and supplies. Coffee at 2 dollars a cup, pancakes at 8 dollars a plate. Could we sell enough even to make payroll? Forget any profit. I believe this is why we're seeing the sunset on the little mom-n-pop businesses. There's no way these folks can pay living wages. …
Original discussionThe Coffeeshop Fallacy196 source comments · at import