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Fast Food joint pays $12 per hour – ‘the way it should be!’

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Via: The Daily Beast

On Thursday I called one of Moo Cluck Moo’s founders and owners, Harry Moorhouse, to find out why he pays what he pays and how he makes it work. Moorhouse, who cops to being in his 60s and has worked in business development for a bunch of corporations, and his partner, Brian Parker, had a simple idea: affordable burgers and chicken sandwiches made out of quality ingredients and pitched to working-class customers. Working with their friend, chef Jimmy Schmidt, who was a columnist for Gannett newspapers, they came up with a brief, basic menu with a slight twist: natural beef, no hormones, sunflower oil for frying. And pay would start at $12 an hour. “I wasn’t tuned in to the whole living-wage movement.” Moorhouse told me. “We just felt that, for a variety of reasons, it was the right thing to do.”

Given the dire employment situation in the Detroit area, Moo Cluck Moo could easily have staffed up paying minimum wage.

But the founders think that, as in many other realms, you get what you pay for when it comes to labor. “What we found is that they are much more tuned in to their jobs,” Moorhouse said of his staff of 12. “They work a lot more efficiently. They take direction pretty easily.” Given raises, he says the average wages at Moo Cluck Moo, where hamburgers start at $3 and chicken sandwiches go for $5, are about $14 per hour.

“Quite frankly, these people work really hard, and a lot of them are really talented—they just haven’t gone to the University of Michigan, for a variety of reasons.”

http://www.thedailybeast.com/articles/2013/08/02/a-fast-food-joint-thrives-even-by-paying-12-an-hour.html

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The single outpost doesn’t do breakfast, doesn’t have tables or a drive-through, and completes about 130 to 150 transactions a day. It is on track to notch sales of between $700,000 and $800,000 annually, which is somewhat less than a typical McDonald’s in the area. It’s also profitable. “We’re paying all the bills out of the cash register,” Moorhouse said. The company is looking at a location for a second unit.

Moorhouse says he believes he can turn a profit on low costs and higher wages because he has a different business model than the giants. “We don’t have a corporate overhead, and our CEO isn’t making $50 million a year,” he said.

August 3, 2013 - Posted by | Uncategorized | , , , , , ,

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