SYRACUSE, N.Y. (NCC News) – The owner of one of Syracuse’s most lauded burger joints believes workers will eventually choose businesses like his over large, national chains.
Randy Beach, the owner of Ale ‘n’ Angus pub in downtown Syracuse, said that he can only go so far as to increase wages and offer benefits. He said that bigger companies, such as McDonald’s, Walmart, and Amazon can keep affording to offer higher pay, while small businesses don’t have the same capacity.
“They can come [to Ale ‘n’ Angus], and we typically start them out at minimum wage or a server minimum wage, whatever the minimum wage happens to be,” Beach said.”They can go there and make $15, $16, $17, $18 an hour.
“And, we’re just a small guy, we can’t pay stuff like that.” he added. “And, for what we’re selling, especially with the way that the labor rate is going up anyway, I’ve had to raise my people just to keep them. So, I can’t raise my menu fast enough or hard enough to get that money back.”
Beach believes that while it has been hard for businesses like his to attract workers, workers will realize the value of working for a small, local shop rather than a big box store or fast-food chain. He said that a couple of employees who he’s hired recently have expressed that sentiment.
“They’re willing to come work here and work for less money and have more hours and stable hours than they are to go there and get less hours and more money,” Beach said. “So, it’s kind of coming back around a little bit.”
Carl Schramm, a labor economist at Syracuse University, said what’s happening in the current job market in regards to increasing wages is positive, but it could possibly bring negative effects as well.
“The only reason that [wage increases] may not be a great thing is that you see a lot of subsidy for people to stay out of the labor market,” Schramm said. “So it’s artificially driving up what a franchisee might have to pay for somebody to be at the window at McDonald’s. And, if the federal government can’t continue that [COVID] subsidy, then that bubble breaks. Those wages are likely to go down because people will be looking around for jobs.”