[HN Gopher] Can a worker-owned restaurant work?
       ___________________________________________________________________
        
       Can a worker-owned restaurant work?
        
       Author : georgeoliver
       Score  : 73 points
       Date   : 2023-08-27 06:16 UTC (1 days ago)
        
 (HTM) web link (southseattleemerald.com)
 (TXT) w3m dump (southseattleemerald.com)
        
       | [deleted]
        
       | aaronbrethorst wrote:
       | The Seward Cafe in Minneapolis has running successfully as a
       | "cooperatively owned, collectively operated restaurant and
       | community-oriented venue" for 49 years.
       | 
       | https://www.sewardcafe.com
        
         | TylerE wrote:
         | Green on pink is now my new least favorite color combo. Thanks,
         | I hate it!
         | 
         | Edit: I encourage downvoters to actually try to read the linked
         | page before downvoting me. It's incredibly unreadable.
        
           | dsr_ wrote:
           | MacBook M1, afternoon sunlight behind me but not directly
           | glaring. Brightness is at about 60%.
           | 
           | It's readable. It's not great. I've seen a lot worse
           | (slightly dark grey on lighter grey, faded tan on medium
           | blue, cyan on bright green...)
        
             | TylerE wrote:
             | What about the background pattern that is nearly the same
             | as the text color?
        
         | ccheney wrote:
         | also Hell's Kitchen (since 2020), downtown MPLS
         | 
         | https://www.hellskitcheninc.com/#about-us-employee-owned-sec...
        
           | PartiallyTyped wrote:
           | I love the vibes :D
        
       | amelius wrote:
       | Not in any successful way, because the entire profit margin is
       | being eaten by delivery companies like Uber Eats. There is no
       | financial future in restaurants, worker-owned or not.
        
         | kristopolous wrote:
         | Is intentional "no delivery" a thing? It should be.
        
           | SoftTalker wrote:
           | Of course. There is no requirement for a restaurant to
           | provide carry-out. Or to lose money providing it. I don't
           | know why they let Uber push them around on that.
        
       | willyt wrote:
       | There's a whole chain of department stores and supermarkets in
       | the UK that's 'worker owned' John Lewis which also operates
       | Waitrose supermarkets. It's a partnership, everyone that works
       | there becomes a partner in the firm after a probation period.
       | It's a successful business; there's a John Lewis in every big
       | city in Britain and Waitrose is in many large towns and cities.
        
         | realjhol wrote:
         | [dead]
        
       | wahnfrieden wrote:
       | Toronto has a good and popular seafood restaurant downtown that I
       | understand operates as a worker-owned cooperative.
       | 
       | Of course hierarchy is unnecessary, but there are a lot of people
       | with resources and vested interest in it appearing otherwise.
       | 
       | The group in the article take the approach of consensus-based
       | decision making. For high velocity work like in a software
       | company, I am more interested in the consent-based decision
       | making processes pioneered by the Quakers and formalized in
       | frameworks like Sociocracy.
        
         | lnxg33k1 wrote:
         | Also in Italy there is a region where a lot of "companies" are
         | cooperatives, (Emilia-Romagna), I'd say it's one of the
         | wealthiest regions in Italy, I've lived there and was one of my
         | happiest time in my life. I'd say a restaurant owned by workers
         | can work, but as everything depends who do you work with, more
         | than class, is personalities that make the difference, that's
         | why I don't like these kind of articles, I think they are most
         | useful to push a narrative and please a segment of the people,
         | some "newspapers" would find a restaurant going bankrupt due to
         | being owned by people, some other one would find a restaurant
         | working being owned by people, they're just cases, people are
         | diverse. In the end regardless of what happens to businesses
         | funded by workers or by rich daddyskids we need better wealth
         | redistribution, more taxes and better worker protections
        
           | seanmcdirmid wrote:
           | Switzerland has a retail/grocery chain called co-op, I always
           | wondered if it was an actual coop or not, I'm guessing it is.
        
             | astrange wrote:
             | It's probably a customer co-op. A funny thing about this is
             | that every kind of alternative ownership structure is
             | considered leftist and somehow "publicly owned".
             | 
             | But in a customer co-op that doesn't include the workers
             | and in a worker co-op that doesn't include you.
        
               | orwin wrote:
               | Actually, customer co-op often include the workers, at
               | least in France. They either get the same share as
               | customers once they start working, or they have
               | preferential price to get bigger shares.
               | 
               | You can even have co-op without workers (there was one in
               | Stain, northwest of Paris when I lived there) with really
               | good food at really good price, but you had to work there
               | like 4-8 hours a month to be customer.
        
             | vidarh wrote:
             | _Many_ countries have co-op grocery chains or other
             | outcrops of the cooperative movement using that name, but
             | most of them (including in Switzerland) are member
             | (customer) owned rather than worker owned.
        
             | wahnfrieden wrote:
             | Sometimes coops are customer-owned which still subjects the
             | workers to wage labor, such as REI. Customer-owned coops
             | are not aligned with the anarchist principles that inspired
             | OP
        
       | Archit3ch wrote:
       | Wouldn't a family-owned business also qualify?
        
       | epgui wrote:
       | Answer: yes. It's what teamshares.com does.
        
       | theogravity wrote:
       | San Jose and Sunnyvale in California has "A Slice of New York"
       | which is a co-op pizza operation:
       | 
       | https://asliceofny.com/about/
       | 
       | Video about the co-op
       | 
       | https://www.youtube.com/watch?v=mhbupz-iuhU
        
         | skavi wrote:
         | Had no idea. They've got great pizza with very reasonable
         | prices. (and some huge sizes)
        
           | reducesuffering wrote:
           | Very reasonable prices are $40 + 8% coop fee for a standard
           | large pizza? That's almost $50 after tax.
           | 
           | https://asliceofny.com/sunnyvale/menu/
        
             | dragonwriter wrote:
             | A "standard large pizza" is 14", the size of their _small_
             | ; 16" is a common extra-large size, their large is 18"
             | (1.65x the size of a "standard large pizza", by area.)
             | 
             | $43.20 ($40+8%) is quite reasonable for an 18" multiple
             | topping pizza.
        
               | reducesuffering wrote:
               | Thanks for helping remind me of the Bay Area / tech
               | wealth bubble. Meanwhile the first pizza place I find
               | with good reviews elsewhere in the country has a 18"
               | multi topping for $25, and two 16" for $37.
        
             | laweijfmvo wrote:
             | A large cheese is $25, and 18" is quite large. Expensive
             | maybe but it's legitimately good pizza as other have said.
        
               | syedkarim wrote:
               | As a reference point: An 18" Whole Foods pizza is $15 at
               | full price and $10 on Fridays.
        
               | reducesuffering wrote:
               | Sure, i'm not commenting on the tastiness. Just that I
               | remember balking at the $40 I spent for a pizza there,
               | and am surprised that anyone thinks the prices are
               | "reasonable" when it's likely one of the most expensive
               | pizza places in the entire country.
        
               | magicalist wrote:
               | I mean: http://www.pizzamyheart.com/menu/
               | 
               | Maybe there's more to the prices than the co-op
               | structure?
        
         | thatoneguy wrote:
         | Awesome, that's so good to see. IIRC the founder was ex-Cisco.
         | I haven't lived in San Jose in over a decade but Slice of NY is
         | the only thing I miss other than my friends.
        
       | jeffbee wrote:
       | Why doesn't the word "rent" appear in here anywhere? If the
       | landlord becomes aware that the restaurant pays way above
       | industry norms, it will raise the rents at the earliest
       | opportunity to squeeze that money back out of the business.
       | Either they own the building or have an existing long-term lease.
        
         | ARandumGuy wrote:
         | Why would that be different in a worker-owned business compared
         | to any other business? Wouldn't a landlord be equally likely to
         | jack up the rent on a company that posts high profits?
         | 
         | I'm not an expert on commercial leasing, but I suspect a
         | landlord who tried to do that would quickly find themselves
         | with no tenants.
        
         | burkaman wrote:
         | The landlord could also just not do that.
        
         | FredPret wrote:
         | Those evil landlords and their infinite pricing power. If only
         | there was competition among landlords (ie, build more).
         | 
         | In all seriousness, businesses can move (easier said than done
         | for a restaurant) and commercial leases are very long, 5-10
         | years.
        
           | freitzkriesler2 wrote:
           | Curious how the average lifespan of a restaurant just happens
           | to be 8 to 10 years.
           | 
           | Couldn't be a coincidence, just couldn't. /S
        
         | scotty79 wrote:
         | That's the exactly the same reason why basic income can't work
         | if it's introduced on its own. This money will immediately land
         | in the hands of landlords who'll just increase rent.
        
           | tech_ken wrote:
           | Doesn't any landlord who defects from colluding stand to gain
           | though? Like how Georgists argue that their land tax won't
           | get passed directly on to renters because if it's applied to
           | the whole market at once then absent perfect and universal
           | collusion on behalf of the landlords renters will arb out
           | those with the highest rent spikes.
        
             | ajkjk wrote:
             | Not if they wait to raise the rent until after they have a
             | tenant who has a large cost to move already.
        
           | tracker1 wrote:
           | Considering a handful of companies already control most
           | rental pricing, and already extract "maximum value" from
           | those properties, I'm not sure it would be any different in
           | any direction.
           | 
           | I don't get why there isn't some level of Trust Busting going
           | on regarding the rental property pricing management at all.
        
             | astrange wrote:
             | Because it's not true. People only think this because of an
             | innumerate article from ProPublica.
             | 
             | Almost all landlords are small time, only own one or two
             | buildings, and can't organize a cartel. Except there's one
             | way they can - by changing the law to favor them by banning
             | new construction.
        
               | mordae wrote:
               | They don't need to collude explicitly. They just watch
               | posted prices in their region and match that. Since the
               | posted prices are always above average (you start higher
               | than the old rent and keep lowering it until somebody
               | takes it), rent keeps going up for everyone.
        
               | astrange wrote:
               | Rents don't always go up even nominally; you've just
               | listed the upward pressures without the downwards ones. I
               | believe they're still down in SF compared to last year.
               | 
               | Posted prices can be misleading because they prefer to
               | give discounts (X months free) rather than lower the
               | sticker price, so it also depends how you count.
        
         | CJefferson wrote:
         | If a landlord becomes aware a company pays it's managers above
         | industry norms, do they raise rent? How does any company make a
         | profit in such a world?
        
           | ralfd wrote:
           | An company can more easily switch offices. But for a
           | restaurant the location is very important.
        
           | astrange wrote:
           | Commercial leases tend to be much longer to prevent the
           | landlords from raising the rent. Which of course, also makes
           | commercial landlords picky about who they rent to.
           | 
           | Land value tax would solve this. (We have property taxes, but
           | they're not as good, and in California they're capped.)
        
         | werewrsdf wrote:
         | That is generally not how things work. Your same argument could
         | be made if they realized the restaurant was very
         | popular/profitable (with low empoloyee wages). Rents have to be
         | somewhat in line with market. They can't just increase rents
         | ignoring the rest of the market. If you are arguing that switch
         | costs are high, so they can. That may be somewhat true, but I
         | know of multiple restaurants in my area that have moved. It's
         | not that high and commercial real estate is not in the best
         | place, so landlords aren't looking forward to vacant property
        
           | giraffe_lady wrote:
           | This is like _the_ contemporary example of rent seeking and
           | during my years of experience in the industry was absolutely
           | a key factor in the long term success or failure of many
           | restaurants.
           | 
           | When you hear of a popular, well-reviewed, by all accounts
           | successful place closing after 5+ years with no whiff of
           | professional scandal or business partner discord, this is
           | usually the reason.
        
           | tristor wrote:
           | > That is generally not how things work. Your same argument
           | could be made if they realized the restaurant was very
           | popular/profitable (with low empoloyee wages). Rents have to
           | be somewhat in line with market. They can't just increase
           | rents ignoring the rest of the market.
           | 
           | No, that is actually pretty much exactly how things work.
           | Successful restaurants get higher rents on lease renewal
           | which is why they're incentivized to sign longer lease terms.
           | The restaurant is usually paying for all the necessary
           | renovations to kit a property out with their equipment,
           | decor, and branding, so the switching costs are very high,
           | and the landlord is heavily incentivized to squeeze them.
           | It's one of the largest, most common, and most existential
           | issues for restaurants as a business, and a major reason why
           | the largest and most successful chains usually operate on a
           | franchise lease-back model where the corporate entity owns
           | the free-standing building, preventing mis-aligned landlords
           | from making the business unsustainable and eating into their
           | profit-margins. Have you ever wondered why an Applebee's or
           | similar is a free-standing building even on a mall property,
           | even though it doesn't need a drive-through? Because Darden
           | Restaurant Group, just like McDonald's, is as much a real-
           | estate investment company as it is a restaurant company, and
           | it understands that both the franchisee/operator and their
           | primary corporate entity benefit from cutting out landlords
           | that are incentivized to be a rent-seeking as possible.
           | 
           | Your comment is deeply misinformed and it's clear you've
           | never been involved in running a restaurant as a business.
           | Rent is often the #1 factor that can drive a restaurant out
           | of business, because it's the thing you have the least
           | control over. You can often structure your menu to help
           | manage food/ingredient and staffing cost, but you cannot do
           | the same about rent. Restaurants are somewhat unique in that
           | for single-location entities, too /much/ success can actually
           | kill you because of asshole landlords.
        
             | fallingknife wrote:
             | How does the landlord know how much money the restaurant is
             | making? All they would know is that the rent is paid on
             | time and the restaurant "looks busy," which really isn't an
             | accurate picture of income at all.
        
               | mordae wrote:
               | They just keep raising it till the restaurant starts
               | rising the prices, slow down for a bit and then start
               | rising the rent again.
        
               | tristor wrote:
               | > How does the landlord know how much money the
               | restaurant is making?
               | 
               | They don't. But when the local newspaper food reviewer
               | gives you a glowing review and there's lines out the door
               | waiting for a table when you have full covers for the
               | night, and they happen to drive by /their/ building and
               | see this, it doesn't take a rocket scientist to figure
               | out you're doing well. The unfortunate reality of
               | restaurant economics means you could have booming
               | business and still making little or no excess profits
               | though, depending on how adept you are at controlling
               | other business costs, but since the landlord can't see
               | your books they use these other indicators to decide to
               | fuck with you instead.
               | 
               | There is neither a legal nor inherent natural requirement
               | that a landlord choose a reasonable or accurate metric to
               | decide to raise your rent. In fact, in most parts of the
               | country (world?) raising your rent is an entirely
               | arbitrary decision in their full discretion. You seem to
               | be under the impression that the just world fallacy is a
               | truth, when in fact it's not only untrue, most landlords
               | are scum who will happily do as much financial harm as
               | possible to you to the very edge of the limit for what it
               | takes for you to go out of business. The landlord doesn't
               | want you to go out of business or move, which is the only
               | incentive tempering their greed at all.
        
               | peterashford wrote:
               | This is why Adam Smith hated rent seeking behaviour and I
               | think its the biggest flaw in how we do capitalism: the
               | wealthy create wealth by controlling stuff - especially
               | natural monopolies like land, not by doing any actual
               | work. It's parasitic.
        
               | giraffe_lady wrote:
               | That's literally the capital in capitalism. There's not
               | some other way to do capitalism that's not like that:
               | it's inherent to the model and what you want is some
               | other system.
        
             | gamblor956 wrote:
             | The Applebee's location is also leased by Dardens (or
             | McDonalds) from the mall...the difference is that they are
             | leasing the plot of land and not a building, so they get to
             | build the restaurant to their own specifications. (For
             | franchised locations, Dardens/McDonalds then leases the
             | completed restaurant to a franchisee. Sources differ on the
             | %, but McDonalds only owns about 40-60% of the land, and
             | about 66-75% of the buildings, for its restaurant
             | locations.)
             | 
             | Successful restaurants usually get higher rents because the
             | value of the location increases with the success of a
             | restaurant. This generally means higher costs for the
             | property owner. This is also why most successful
             | restaurants have long term leases, meaning 10 years or
             | more, and major chains like McDonalds can have even longer
             | leases; it's not unusual for an Applebee's location to have
             | a 30 or 50-year lease.
        
       | SamWhited wrote:
       | This makes me miss Blackstar Co-op in Austin, TX. Great
       | microbrewery with excellent food that has a hybrid
       | worker/consumer ownership model. If you're ever in the area (and
       | if it's still around, it's been years since I've lived there)
       | look it up!
        
       | IndoorPatio wrote:
       | - https://mirisata.com/
       | 
       | - https://www.bobsredmill.com/whole-grain-store.html
        
       | wcerfgba wrote:
       | Wonderful story, thanks for sharing.
       | 
       | Do you know any worker-owned food businesses? Share in the
       | comments!
       | 
       | In Preston, UK, we have The Larder. Not sure about the ownership
       | model but it is a social enterprise working on food justice:
       | https://larder.org.uk/
        
         | colechristensen wrote:
         | Hell's Kitchen in Minneapolis does something along these lines
         | though the details aren't entirely obvious to me.
         | 
         | https://www.hellskitcheninc.com/
        
         | vector_spaces wrote:
         | In San Francisco, the Rainbow Grocery Cooperative has been
         | around since the 70s. While working in the food industry in San
         | Francisco, I had heard that employees there made in the
         | ballpark of 100k~ a year, but that's purely hearsay and I have
         | no idea how accurate it is. Before Bay Area tech workers chime
         | in with how even 100k~ is effectively unlivable out there, I'll
         | mention that I lived on about 25k a year in the Bay Area
         | between 2010 and 2017, and lots of people -- food and service
         | workers, teachers, warehouse workers, delivery drivers --
         | scrape by on similar or less, with no benefits or equity. You
         | might be surprised how many restaurants and bars and grocery
         | stores in the Bay hire their cashiers, busboys, dishwashers,
         | and cooks as _contractors_ , or pay them cash under the table.
         | 
         | Back on topic: there's also the Cheese Board in Berkeley, CA,
         | and Arizmendi Bakery but not sure if the salaries are as great.
         | There used to be a great bakery in South Berkeley that was
         | worker owned and fairly well known, but the name is escaping me
         | (edit: it was Nabolom Bakery). In any case, that one struggled
         | more with the business side and employee salaries were close to
         | minimum wage.
         | 
         | Another aside: it's interesting to me how lots of tech workers
         | in the Bay Area live in an entirely different Bay Area than me
         | or most people I knew out there -- these two worlds seem to
         | scarcely talk to each other in any meaningful ways.
        
           | lotsofpulp wrote:
           | In the western US, Winco is a pretty large grocery store
           | owned by employees.
        
             | astrange wrote:
             | Publix is employee-owned in the South, but some own a lot
             | more than others.
        
               | TylerE wrote:
               | Publix is complicated. One family controls about 30% of
               | the shares, and the company has done things (like donate
               | lots of money to conservative PACs) that many employees
               | are unhappy with.
        
         | raybb wrote:
         | Since you mentioned social enterprises, I'll share this repo I
         | made where I keep track of resources for learning about social
         | enterprises. https://github.com/RayBB/awesome-social-enterprise
         | 
         | Btw the definition varies a good bit around the world but
         | generally a social enterprise is more about the goal of the
         | organization and a coop (or worker-owned) is about who has
         | power the make decisions in the org.
        
         | epgui wrote:
         | teamshares.com
        
         | jeffbee wrote:
         | We have tons of worker-owned cooperatives in Berkeley,
         | including Cheese Board Collective that is successful, and one
         | block from that The Local Butcher, also worker-owned. A few
         | blocks down was the worker-owned bike shop but it went under
         | for reasons related to having admitted a notorious bozo into
         | the co-op. We also have Nabolom Bakery that failed after
         | decades as a worker co-op but survives today as an owner-owned
         | business.
        
           | yodon wrote:
           | Is Zachary's Pizza in the same category? (I seem to recall
           | being told there was something unusual about their structure
           | but I can't recall the details)
        
             | uoaei wrote:
             | You might be thinking of Arizmendi, which is a spin-off of
             | Cheeseboard. Zachary's is family-owned, not really an
             | uncommon setup.
        
             | jeffbee wrote:
             | Yeah. Cooperative pizza is an entire thing. Arizmendi is
             | also worker-owned, as is Nick's in Oakland.
        
       | dllthomas wrote:
       | I'm pretty sure it's impossible, and the several I've eaten at
       | are merely figments of my imagination.
        
       | SenoraRaton wrote:
       | One thing that I never understood was, if an employees wages are
       | tied to the success of the company, would that not incentivize
       | better work ethic as a whole? That is how it works in the start-
       | up world. You get equity, you have literally invested in the
       | company, and you know that your work should (in theory) directly
       | benefit you financially.
       | 
       | Instead we end up in a system where the employee/employer
       | relationship is inherently antagonistic. If you work at
       | McDonalds, in is 100% in your interest to do the absolute bare
       | minimum possible to not be fired, and in your employers interest
       | to pay you as little as legally possible. This costs more
       | overhead and resources from managers, and dealing with angry
       | customers, and food loss/waste, which could largely be avoided if
       | the employees were invested in the success of the workplace.
        
         | avgcorrection wrote:
         | This is a concept that dumbfounds people today (at least many
         | on this startup incubator forum) but that Adam Smith explained
         | over two-hundred years ago. Yes, workers and owners end up
         | forming two distinct groups with two distinct class interests.
        
         | programmarchy wrote:
         | Ever done a group project in school? Free riders ruin shared
         | incentives.
        
           | moate wrote:
           | I never did a single group project at school that had a
           | legally binding contractual agreement or a board of
           | shareholders, so I imagine these are entirely different
           | situations.
        
           | SenoraRaton wrote:
           | But somehow having a freeloader at the top that siphons off
           | profits is totally fine? I would much rather have someone
           | that I quite literally worked with, and the rest of the staff
           | interacted with freeloading, than some franchisee owner who
           | literally does nothing for the business. Not only would it be
           | much easier to identify, it would be easier to socially
           | address, or remove this person. I couldn't fire my project
           | mates in school, in this scenario you could.
        
         | bluedino wrote:
         | >> If you work at McDonalds, in is 100% in your interest to do
         | the absolute bare minimum possible to not be fired
         | 
         | Or:
         | 
         |  _If it 's flipping hamburgers at McDonald's, be the best
         | hamburger flipper in the world_
         | 
         | Ice Cube, or Abraham Lincoln, or Dave Ramsey said that. I
         | forgot which one.
        
           | pessimizer wrote:
           | Horatio Alger stories were about humble, brave, smart and
           | hardworking boys from troubled, deprived backgrounds who
           | found terrible, unrewarding jobs or situations, worked hard,
           | smart, or bravely at them, and were observed doing this by
           | successful, wealthy, and wise men who recognized that raw
           | merit, plucked those boys from their situations, moved them
           | into their businesses and homes, and gave those boys real
           | responsibility and a start on their road to inevitable
           | success.
           | 
           | Horatio Alger was a pedophile who preyed on young homeless
           | boys and orphans.
           | 
           | It is very easy for the best burger flipper at McDonald's to
           | remain the best burger flipper at McDonald's forever. His job
           | is safe. The harder he's willing to work without getting a
           | raise, the longer he will be working without getting a raise.
           | One day, he will probably become assistant manager, and his
           | promotion will mean a pay cut because now he's on salary, and
           | his responsibilities will become greater because he has to
           | show up when others don't. They know he will, which is why
           | they gave him the job. Meanwhile, he works under a series of
           | managers transferred from other locations, or hired from
           | other companies. Eventually he gets sick, and his awful
           | health insurance runs out almost immediately. He's demoted,
           | then fired because he can't keep up at the job anymore. Then
           | he's homeless, then he's dead.
           | 
           | Goofus, however, did the least possible in order to keep from
           | being fired, and went to community college at night. He
           | eventually was able to wrangle a paid internship at a company
           | where there was a career path, and quit McDonald's. Everybody
           | was happy to see him go, because he was a person like them
           | who managed to get a good job, and also because he was
           | terrible to work with because he was always so tired from
           | school and didn't put a ton of effort in. Goofus is now
           | middle-class.
           | 
           | postscript: Goofus later also got sick, his insurance ran
           | out, and he became homeless and died. US healthcare is
           | terrible.
        
             | SoftTalker wrote:
             | Have you worked at a McDonald's as a manager? Because I
             | have, and their insurance for full-time staff and managers
             | was the same as you get at most employers. Anthem, or
             | whatever major provider. Salaried managers also earn
             | middle-class incomes. Perhaps your experience was
             | different, or perhaps you are making it up.
        
         | 542458 wrote:
         | I think it would incentivize bailing out as soon as times get
         | slightly rough, and last thing you want is all your best (and
         | most mobile) employees quitting when you need them most.
         | 
         | For example, if my company has a bad quarter and makes $0 net,
         | does everybody get paid $0? Most people wouldn't stand for that
         | and would start job hunting pretty quick. The "work for equity
         | at a startup" crowd does it because they can afford to take the
         | risk of $0. Most people can't or won't take that risk.
         | 
         | > If you work at McDonalds, in is 100% in your interest to do
         | the absolute bare minimum possible to not be fired
         | 
         | That incentive won't change much under this new system. Joe
         | Average at McDonalds has little to no power to significantly
         | increase the company's, or even their franchise's profits.
         | Sure, they could _maybe_ move the needle slightly, but working
         | (say) twice as hard to make 3% more is probably not a rational
         | move.
        
           | mikepurvis wrote:
           | Usually it's not zero though, like it's base pay + the
           | promise of a maybe-payout down the road if things go really
           | well.
           | 
           | But part of it also hinges on the organization being small
           | enough that individuals can actually make a difference.
           | Otherwise it's back to just being a prisoner's dilemma /
           | shared commons, where the incentive is to slack off and let
           | everyone else carry you.
        
         | seanmcdirmid wrote:
         | > If you work at McDonalds, in is 100% in your interest to do
         | the absolute bare minimum possible to not be fired, and in your
         | employers interest to pay you as little as legally possible.
         | 
         | Having worked that gig before, that isn't how it works. You
         | don't want to work hardish, you simply don't get hours. If
         | management doesn't want to give you more than minimum raises,
         | you leave for something else, and turn over is high. There is
         | still leverage to do good things (both on worker and management
         | side).
         | 
         | A lot of people working there (mainly managers, but some crew)
         | wanted to be owners, McDonald's had a franchise system in place
         | to do that but you had a better chance of getting one if you
         | actually learned the ropes at another store for awhile.
        
         | TuringNYC wrote:
         | >> One thing that I never understood was, if an employees wages
         | are tied to the success of the company, would that not
         | incentivize better work ethic as a whole?
         | 
         | It would probably incentivize you to ensure _everyone else 's_
         | work was up to par. This doesn't seem that different from a
         | small startup with heavy equity comp -- everyone is
         | incentivized to work hard, but there are also plenty of times
         | where people want everyone else to work hard but not themself.
         | 
         | In the extreme case, imagine two co-founders. It is common for
         | each co-founder to try and take distracting side jobs /
         | consulting or not quit their dayjob, while the other puts in
         | the hard work to grow the value of the startup. Generally this
         | is a hard-NO from an angel/vc investment standpoint, but
         | outside an external party clamping down, there is an incentive
         | to cheat.
        
         | wpietri wrote:
         | You might enjoy the This American Life episode called NUMMI:
         | https://www.thisamericanlife.org/561/nummi-2015
         | 
         | It looks at how Toyota took GM's worst plant and made it one of
         | the best using the same workers. And how GM's management
         | refused to learn lessons from that.
         | 
         | I think the current antagonism is something that started with
         | management many decades ago. But now it has a lot of momentum,
         | such that people on both sides are used to it and will carry it
         | forward. I remember reading a great zine piece from a video
         | game tester who'd had a variety of shitty jobs. He finally
         | found one that was really good: good pay, good working
         | conditions, nice bosses. But he felt compelled to steal office
         | supplies in bulk because that's what he'd done at his shitty
         | jobs. He was sort of mystified by it, but he couldn't stop.
         | 
         | However, there are alternatives. I live near an Arizmendi
         | bakery [1], which is a worker-owned co-op. It's great. The food
         | is really good, it's sanely run, and the people behind the
         | counter seem serene and present. It's inspired by the founder
         | of the Mondragon co-op [2].
         | 
         | Or you could look at companies that shift to employee ownership
         | later. Bob's Red Mill was actually started by a guy named Bob
         | who sold the company to his employees in 2010. [3]
         | 
         | I don't think those are going to be utopias. But I do think
         | they lack some of the structural disincentives against sanity
         | and compassion that you find in the typical corporate
         | structure, where every dollar in a worker's pocket is a dollar
         | less in economic rents for the owners.
         | 
         | [1] http://arizmendi-valencia.squarespace.com/
         | 
         | [2] https://en.wikipedia.org/wiki/Mondragon_Corporation
         | 
         | [3] https://en.wikipedia.org/wiki/Bob%27s_Red_Mill
        
           | corinroyal wrote:
           | Oh, I miss Arizmendi so much since I moved away.
           | 
           | I heard about an Arizmendi customer who went to Paris and was
           | really excited to try real French bread. When she got there,
           | all she could find was horrible like you could find in any
           | supermarket. She told her French friend about her
           | disappointment and asked where she could get some real French
           | bread. The friend's reply was, "Berkeley."
           | 
           | There are a lot of great worker co-ops in the Bay Area.
           | Here's a map from Network of Bay Area Co-operatives:
           | https://nobawc.org/map-of-nobawc-coops/
        
           | tiffanyg wrote:
           | Good points and info, IMO. One suggestion, though:
           | 
           |  _I think the current antagonism is something that started
           | with management many decades ago._
           | 
           | I think the pattern goes back, well, as far as you want to go
           | back. There have always been individuals who think that
           | _they_ * should be in charge. There's a continual 'tug-of-
           | war'.
           | 
           | For centuries, only a very few people were able to
           | participate directly - when the world largely consisted of
           | monarchies, empires, "hoards", and all of that**. Ancient
           | Athens, and more recent "Enlightenment" ideas about "natural
           | rights" and "mandate of the masses" etc. have generally been
           | unusual in practice until quite recently.***
           | 
           | The data strongly support much more shared power past a
           | certain level of technological and economic development, but,
           | even if aware of the myriad examples, people with power-lust
           | aren't going to stop. It's directly contradictory to that
           | worldview, ambition, etc. - in multiple ways. And, any given
           | person is likely to tack more towards or away from such
           | notions over time, depending on multiple factors.
           | 
           | Right now, it seems there's much more interest, in multiple
           | realms, on consolidating power, again.
           | 
           | Caveat populus.
           | 
           | * Not consciously intentional play on "the royal we"
           | 
           | ** Before that, there's a lot more variation, AFAIK, but also
           | a lot less confidence and evidence - though, ancient Egypt
           | and China (three kingdoms etc.) come to mind as particularly
           | early examples with solid enough information regarding ruling
           | over large numbers of people by individuals (and various
           | attempts &/ smaller "kingdoms" etc.)
           | 
           | *** "Radical", some might say "insolent"
        
         | deegles wrote:
         | I (naively) think a restaurant would have an easier time
         | detecting people who are doing the bare minimum. The issue
         | becomes how to "punish" freeloaders who are also owners?
         | Imagine the nightmare scenario of a restaurant where every
         | employee is a part of the LLC that owns it. "Firing" someone
         | becomes an onerous legal process.
        
           | pc86 wrote:
           | You can handle it in advance by requiring "vesting" periods
           | where you are working but not an owner. The existing owners
           | then get the chance to offer you ownership, or not. This is
           | how most private physician practices work, and AFAIK a lot of
           | law firms as well.
           | 
           | So if you're a lazy employee for your initial 2-year
           | contract, you don't get any offer when your contract expires.
           | If you're not, you might get a contract extension or an offer
           | to buy in as an owner.
        
           | mordae wrote:
           | I think coops just vote on it.
        
           | SenoraRaton wrote:
           | Does it? If the rest of the community doesn't want you there,
           | seems pretty cut and dry. There are no "managers" at Valve,
           | yet they fire people all the time. You would simply receive
           | your pay, and whatever your portion of the dividends owed to
           | you up until your date of firing.
        
             | pc86 wrote:
             | There is a lot more legal overhead to buying out an LLC
             | owner against their will compared to firing an at-will
             | employee.
        
               | username332211 wrote:
               | Should a worker-owned company be an LLC? An LLC[1] is a
               | union of assets put together for a common purpose. It's
               | not a union of people. A worker-owned company should have
               | a different legal structure, usually something created
               | specifically for such an organization, though one would
               | imagine partnerships would be suitable if the law doesn't
               | provide for a special structure.
               | 
               | [1]Granted, I'm thinking of European definitions here,
               | because I get really confused when I try to educate
               | myself about American ones. An GmbH is more or less an AG
               | with stakes rather than shares, whereas an American LLCs
               | seem to behave somewhat differently (taxation, for
               | example is pass-trough).
        
               | singleshot_ wrote:
               | No. Taxation of an LLC is not pass through. Taxation of a
               | single member LLC that is a disregarded entity can be
               | pass through. LLCs can also opt for sub K, sub S or sub
               | C.
               | 
               | I also would not refer to an LLC as a collection of
               | assets for a common purpose; instead I would say it is a
               | popular entity form that limits member or manager
               | liability. However you could take a different view.
        
               | mminer237 wrote:
               | Entity laws are all state-by-state in the US, but in most
               | (all?) states, LLCs and corporations are essentially the
               | same ownership-wise. A person buys membership
               | interest/stock in an LLC/corporation, and becomes a
               | partial owner. The organization is a separate legal
               | entity then owning the contributed assets and the
               | members/shareholders own the LLC/corporation. The bylaws
               | will lay out how to divest a member/shareholder of his
               | interest, usually involving the other
               | members/shareholders or a board of managers/directors
               | voting to buy out his shares.
               | 
               | It's not really a union of assets nor people though. The
               | former would be a trust or arguably a non-profit, and the
               | later would be a partnership. And LLCs can elect to be
               | taxed as a C corporation, although I can't fathom why one
               | would. (And most small businesses can elect pass-through
               | taxation!)
        
             | fallingknife wrote:
             | And how does your remaining equity position work? If you
             | lose it on firing then you aren't really an owner in any
             | meaningful sense any more than a tech employee with
             | unvested RSUs is.
        
             | username332211 wrote:
             | Valve is still a corporation with a single majority
             | shareholder.
             | 
             | And I can't imagine a restaurant could work the same way as
             | Valve. In a restaurant, you have to feed people day in day
             | out. You can't deliver a Michelin-quality meal when the
             | inspiration hits you and nothing when it doesn't.
             | 
             | Valve also seems to have a strangely forgiving customer
             | base. I don't think I've ever seen anyone complain about
             | micro-transactions in their games, whereas other publishers
             | seem to get a lot of hate for it. (Then again, ever since I
             | stopped playing games, I've began to notice that each
             | publisher had their own unique method of fleecing their
             | customer base, so it may be that Valve got the players that
             | tolerate micro-transactions, whereas others would have the
             | ones who tolerate endless DLCs.)
        
               | jabroni_salad wrote:
               | If you hang out with the tf2 people you might not see
               | much in the way of good vibes towards valve. The
               | community in that game persists despite valve, not
               | because of them.
        
         | baby-yoda wrote:
         | Wages tied to success of the company, ie profit sharing; how
         | much more profitable could a restaurant become if every
         | employee gives it their absolute best labor output? A few
         | percentage points here and there? Certainly not orders of
         | magnitude. Maybe theres no improvement in some situations at
         | all? I don't see it as much of an incentive, especially if the
         | variable compensation is partly in lieu of fixed compensation.
         | 
         | The startup scenario you mention offers the _potential_ for
         | huge payouts (of course this plays out wildly across a
         | spectrum). A far easier sell to employees, IMO.
        
           | FFP999 wrote:
           | [dead]
        
         | [deleted]
        
         | benjaminwootton wrote:
         | At the lowest levels, most employees don't stand to share in
         | any gains or upside attributed to their hard work. At best
         | there will be a small bonus if the company does well which will
         | be weakly correlated with their individual efforts.
         | 
         | In white collar jobs and as you move into management then the
         | bonus programmes become more aligned with business unit and
         | company performance so maybe you can move the needle and get
         | paid for it. Companies also have the carrots of promotions and
         | pay rises.
        
       | sharts wrote:
       | Worker-owned anything can work. It's democracy in the workplace.
        
         | version_five wrote:
         | Democracy only works when just about everyone wants the same
         | thing. And even then leaders generally abuse power. The lower
         | the stakes, the worse it gets.
        
           | avgcorrection wrote:
           | Oligarchy only works because only what the 10%, 1% (or
           | whatever the cutoff) wants _matters_ so what everyone _else_
           | wants is per definition irrelevant.
        
           | gochi wrote:
           | Democracy works when most involved disagree actually, that's
           | its primary function over other formats. Otherwise just go
           | with a king since everyone wants the same thing.
        
           | Swenrekcah wrote:
           | I think I agree with the point but people don't need to want
           | all the same things so I think I'd rather phrase it this way:
           | 
           | "Democracy fails when the people and their leaders fail to
           | realise that the thing they want above all is peace and
           | general prosperity, and that neither of those is a naturally
           | occurring phenomenon."
           | 
           | Because the peaceful transfer of power as well as respect for
           | the truth, and equality before the law is the absolute
           | foundation that any prosperous democracy needs.
        
             | version_five wrote:
             | Doesn't that just kick the problem down the road to the
             | definition of peace and general prosperity? If people have
             | irreconcilable differences over what those mean, they still
             | may not be able to find the common ground needed for
             | running a business or country. With something more nimble
             | like a business it's easy to imagine vastly different views
             | on how the business can prosper, which makes the benevolent
             | dictator (business owner) model all the more attractive.
        
         | xwdv wrote:
         | It's a hellish concept. The workers relationship to the company
         | becomes less transactional, and they get all the stress of
         | owning a business but without the outsized profits.
        
           | MisterBastahrd wrote:
           | Most restaurant workers would gladly take the stress of
           | owning a business over the stress of being paid 40 hours
           | worth of near-minimum wage for 80 hours worth of actual work.
        
             | leetcrew wrote:
             | > stress of being paid 40 hours worth of near-minimum wage
             | for 80 hours worth of actual work.
             | 
             | which restaurant workers is this true of? tipped FOH
             | workers make a little to a lot more than minimum wage
             | depending on the shift. BOH workers are indeed getting
             | minimum wage or a little more, but wage theft to the tune
             | of 50% of a paycheck is incredibly rare.
        
           | disjunct wrote:
           | Have you worked at a worker-owned company? I think, largely,
           | a goal of worker-owned restaurants is to make the work
           | experience less transactional. Is there anything besides
           | stress (which is not mentioned in the article) that would
           | make transactionality and outsized profit a necessary thing?
        
       | raybb wrote:
       | If anyone wants to start a coop there is an accelerator for them
       | based in NYC called start.coop. I've joined a few of their calls
       | and it seems like they're pushing for pretty great stuff.
       | 
       | https://www.start.coop/accelerator
       | 
       | Also in NYC is "The Drivers Cooperative" which is Uber but owned
       | by drivers and they're doing pretty well so far (based on the
       | last annual report).
       | 
       | https://en.wikipedia.org/wiki/The_Drivers_Cooperative
        
       | e1g wrote:
       | "Approval of any proposal or purchase has to be unanimous. Either
       | the proposal is revised to be agreeable to everyone or it's
       | scrapped."
       | 
       | RIP.
        
       | kepler1 wrote:
       | Like so many idealistic things, this kind of setup works only as
       | long as the people joining or taking responsibility for the thing
       | continue to have and practice the same ideals as what started it.
       | 
       | Start to lose that just a little bit, where responsibility gets
       | diffuse, the original intention gets lost, or you start hiring
       | people who don't have the same understanding, and it all falls
       | apart.
       | 
       | Not every worker wants to have an equal share of the grunt work.
       | Not every worker believes that they contribute equally to the
       | success of the restaurant and are willing to split the proceeds
       | in that way. Not every worker wants to have to live the
       | restaurant as if it's their life.
       | 
       | Worker owned coops have as many failure modes as "evil" corporate
       | ones do. And in some senses are all the more disappointing
       | because of it.
        
       | tech_ken wrote:
       | >Because it can be hard to get everyone in the same room, most
       | votes are held via a Discord server. People respond to proposals
       | with a thumbs-up emoji for yes, a thumbs-down for no, and a
       | monocle to signal they want further discussion -- a closer look,
       | if you will
       | 
       | I would love a retrospective on the role of Slack and Discord as
       | tools of revolutionary politics in the last decade or so. Seems
       | like no matter where you fall ideologically, there's a Slack
       | channel or Discord server for you and it's doing the emoji vote
       | thing.
        
         | wcerfgba wrote:
         | Thomas Swann's _Anarchist Cybernetics_ and Rhiannon Firth 's
         | _Disaster Anarchy_ both touch on this at points.
         | 
         | https://www.plutobooks.com/9780745340463/disaster-anarchy/
         | 
         | https://academic.oup.com/policy-press-scholarship-online/boo...
        
         | candiddevmike wrote:
         | Is the crying laughing emoji a yes vote or a no vote???
        
       | NoMoreNicksLeft wrote:
       | Is this a chain-style restaurant? Fine dining haute cuisine? Fast
       | food?
       | 
       | What happens when they don't want to do the actual work anymore?
       | Do they still keep their partial ownership of the restaurant and
       | hire wagies? What if they can't work anymore? It's not easy to
       | step and fetch for 10 hours a day at age 50. What if they just
       | need to reduce their schedule to 10 hours a week (and not pull
       | their weight)?
       | 
       | What if most people willing to do grunt work also aren't very
       | good at managing a restaurant? At menus, at book keeping? What if
       | people prefer to be served by the cute young things that you tend
       | to see at many chains (even if they're dressed more modestly than
       | those at Hooters)? You know, the same sort of people who are just
       | unlikely to want to become invested in such a place, where
       | they'll be tied down to it?
        
       | [deleted]
        
       | jebarker wrote:
       | Left Hand Brewery in CO is majority employee owned but not 100%.
       | 
       | https://www.brewbound.com/news/left-hand-brewing-now-majorit...
       | (2015)
        
         | FFP999 wrote:
         | [dead]
        
         | hinkley wrote:
         | New Belgium Brewery (Also CO... what's going on in CO?) was
         | employee owned but a few years ago they sold and now Kirin owns
         | them now.
         | 
         | Not sure how you can be employee owned and have a parent
         | company. I think the Wikipedia page needs some edits.
        
         | tech_ken wrote:
         | IIRC BeauJo's is going this way as well after the original
         | owner is retiring.
        
       | aogaili wrote:
       | Any good examples of something like that implemented in the
       | software domain?
        
         | the-smug-one wrote:
         | Igalia: https://www.igalia.com/
         | 
         | Works on open source stuff, like Linux kernel, GStreamer, etc.
        
         | wcerfgba wrote:
         | Yes, in UK we have a network of tech workers co-ops:
         | https://www.coops.tech/about
        
           | astrange wrote:
           | This is a bad sign. The UK is like Argentina - if they've
           | adopted an economic idea that means it doesn't work and you
           | need to run away from it.
           | 
           | https://twitter.com/JosephPolitano/status/169124217640185446.
           | ..
        
             | the-smug-one wrote:
             | Burn your fiat money then, pretty sure they've got that
             | back in good ole Argentina.
        
             | toyg wrote:
             | Couple of notes:
             | 
             | - the UK, or rather UK trade unions, basically _invented_
             | the concept of modern cooperatives _150 years ago_.
             | 
             | - by now, cooperatives have effectively been out of fashion
             | for decades. Even the flagship Cooperative Bank has
             | recently been de-facto "normalized" into a regular
             | business.
             | 
             | - the cooperative model can, however, still be attractive
             | for small groups of artisans, _like software developers_.
             | Hence the link from parent poster. This doesn 't mean that
             | it's been "adopted" at large scale, or seen a mainstream
             | resurgence - it has not.
        
       | fallingknife wrote:
       | > The bylaws are 10 pages long and cover just about every
       | eventuality the group might encounter
       | 
       | I predict they will find out this is very much not true. I have
       | seen 1000 pages fail to do this.
        
         | wcerfgba wrote:
         | It's less important to cover every eventuality, and more
         | inportant to outline the decision making process for handling
         | the unexpected.
        
       | exabrial wrote:
       | Yes, absolutely, but there are pitfalls:
       | 
       | * Somehow finances have to work, which is usually a harsh reality
       | for some. Ex: Hey we can't pay workers $250/hr without raises
       | prices to above what customers are willing to pay
       | 
       | * Consumers despite "Least common denominator" which is often the
       | result of "design by committee". Usually consumers are after
       | something niche, unique, artistic, and creative, which is the
       | inspiration or vision of an individual.
       | 
       | > As for making business decisions, it's done democratically. The
       | entirety of the member-owner group votes on major decisions, and
       | the bylaws outline scenarios where employees are authorized to
       | act independently of a vote
       | 
       | I don't see this working in the long term unfortunately unless a
       | majority of the workers have a lot experience with business,
       | especially something as cashflow-sensitive as a restaurant (which
       | typically operate on razor-thin margins). But I do wish them luck
       | in their experiment.
        
         | ska wrote:
         | > unless a majority of the workers have a lot experience with
         | business,
         | 
         | That may be the wrong way to think about it. Vanishingly few
         | people have enough experience in all aspects of any business to
         | make good decisions without others inputs. So in many cases we
         | are reliant on someone's domain expertise, not to make the
         | decisions, but to get the the right decision point. Once the
         | pros and cons are laid out properly, anyone with a real stake
         | can contribute to the decision.
         | 
         | The bigger the decision, the more people with a stake need to
         | be involved. In the typical business world this shows up all
         | the time: "that's a board-level decision", "we need all the
         | execs to agree on this one", etc.
         | 
         | We don't know the actual implementation, but it's possibly it's
         | just a reasonable reflection of that practice into collective
         | ownership...
        
         | 8f2ab37a-ed6c wrote:
         | It would be interesting to see reports of long-term experiments
         | of this sort, see how businesses run this way fare over time
         | and whether this sort of model is unsustainable, or if these
         | people are onto something effective that stands the test of
         | time. Any other restaurants who have tried this sort of model
         | in the past and stuck with it?
        
           | kikokikokiko wrote:
           | The simple fact that you never ever heard about something
           | like that, tells you all you need to know aboit the long term
           | prospect of business owned by "the collective". In my part of
           | the world we have a saying " what fattens the cows is the
           | owner's gaze". A company that belongs to everyone working
           | there belongs to no one, and it will eventually become a
           | freeloader's dream. I have heard of one or two examples of
           | this things being tried, one even a restaurant close tomy
           | home town. It never lasts.
        
             | ska wrote:
             | >The simple fact that you never ever heard about something
             | like that
             | 
             | actually there are lots of examples, so it can't be that
             | simple.
        
         | soligern wrote:
         | How do you fire people? Do you just get voted off the island?
         | There would need to be managers.
        
         | jancsika wrote:
         | > * Consumers despite "Least common denominator" which is often
         | the result of "design by committee". Usually consumers are
         | after something niche, unique, artistic, and creative, which is
         | the inspiration or vision of an individual.
         | 
         | Dollars to donuts you wrote that bullet point without having
         | read the article:
         | 
         | * the _extant_ worker-owned restaurant discussed in the article
         | is the epitome of  "something niche, unique, artistic, and
         | creative," which was "the inspiration or vision of" the owner
         | making a pitch to the staff to become worker-owned. It even
         | mentions getting employees because of the unique approach. I
         | can't imagine they haven't drawn non-trivial consumers to their
         | restaurant for the same reason
         | 
         | * pictures of the food exist in the article
         | 
         | In short: I know "design by committee" food. I've worked with
         | "design by committee" food. That fried chicken sandwich, sir,
         | _is no "design by committee" food_.
        
         | willio58 wrote:
         | > Hey we can't pay workers $250/hr
         | 
         | Unless those workers were looking to make half a million per
         | year I think that's okay.
        
         | p1necone wrote:
         | > Somehow finances have to work, which is usually a harsh
         | reality for some. Ex: Hey we can't pay workers $250/hr without
         | raises prices to above what customers are willing to pay
         | 
         | If it was worker owned wouldn't you just pay everyone some
         | reasonable wage that the business can afford and then also
         | split profits evenly?
        
           | danielheath wrote:
           | It's challenging to retain senior staff at those rates;
           | there's a limit to how much of a cut I'll take to work at a
           | cooperative.
        
           | dnissley wrote:
           | Don't forget to split the losses evenly as well!
        
           | Nifty3929 wrote:
           | Yes, but only if there is enough money to pay the base wage
           | in the first place, which is far from a foregone conclusion.
           | Let alone having any profit left to distribute.
        
           | carabiner wrote:
           | What is "reasonable," what is "fair." These words signify a
           | death spiral in wage discussions. The reality is that
           | businesses cannot increase prices forever and have a market
           | that still wants to pay them. If I sell burgers for $10k and
           | they're shit burgers then I'd make no money and have to shut
           | it all down. Just like my friend who shut down his cabinetry
           | business because he was paying his employees more than
           | himself (doing the "right thing"). He is a one man shop
           | working out of his van and is doing much better, but his
           | employees' wages became 0.
        
             | kikokikokiko wrote:
             | Some years ago a burger joint opened in my neighborhood, a
             | very hispsterish kind of place. I went once, and saw a
             | message attached to the menu, saying that 50% of the
             | revenue obtained from every burger would be donated to some
             | cause du jour, probably climate change related, bla bla
             | bla. To me it signified that the burgers they sold were at
             | least 100% overpriced when compared to what they should
             | cost if they were trying to have a profitable business. Fun
             | fact: they were, and their burger joint went under in a
             | couple of months. Capitalism wins in the end, it doesn't
             | matter if you want to fight it, the sun always rises again.
        
             | fn-mote wrote:
             | The restaurant has been in business 10 years. I think that
             | evidence makes me dismiss your comment as pessimistic
             | hyperbole. If the wages really didn't work, the restaurant
             | would have been long gone.
             | 
             | I acknowledge that you have seen something similar not work
             | out, first hand, but in this case it is apparently
             | different.
        
             | no_butterscotch wrote:
             | > What is "reasonable," what is "fair." These words signify
             | a death spiral in wage discussions.
             | 
             | Another commenter commented on a burger-joint giving a
             | share to "climate" causes. What a share entails in this
             | case, whether it comes from profit, or whether they pass
             | the cost of this cause to the customer is unknown.
             | 
             | Additionally I live in a place where there are reparations
             | discussions and where unions agreed that teachers of a
             | certain ethnicity would be eliminated first in the name of
             | equity if it came down to staff cuts.
             | 
             | How does this play into the scenario if these types of
             | events happen more often, even discussing these things is
             | difficult and people could veer away from. I heard that
             | Amazon inserted "woke" discussions into union talks in
             | Georgia in an effort to de-rail them, not to engender
             | unity.
        
         | SamWhited wrote:
         | In my experience the opposite is almost always true:
         | 
         | > Somehow finances have to work, which is usually a harsh
         | reality for some
         | 
         | At most places I've been involved in the workers are more
         | careful with money _because_ they are standing together and
         | want the business to succeed. They have transparency into the
         | finances, so they know what 's possible and try to make sure
         | not to go overboard.
         | 
         | > Consumers despite "Least common denominator" which is often
         | the result of "design by committee". Usually consumers are
         | after something niche, unique, artistic, and creative, which is
         | the inspiration or vision of an individual.
         | 
         | All of the worker owned places I've been have been exactly
         | this: creative, interesting, and individual. These aren't giant
         | chains designed in a megacorp boardroom.
         | 
         | > I don't see this working in the long term unfortunately
         | unless a majority of the workers have a lot experience with
         | business, especially something as cashflow-sensitive as a
         | restaurant (which typically operate on razor-thin margins). But
         | I do wish them luck in their experiment.
         | 
         | There are many of these and though I don't know the success
         | rate compared to hierarchical businesses in the food industry
         | in particular, co-ops have a higher success rate than
         | hierarchical businesses in general and there's been a lot of
         | research into it, though I don't know if an exact "why" has
         | ever been established. I suspect it's that there's no handful
         | of individuals who can get greedy and ruin things by trying to
         | maximize profit. Even for-profit co-ops generally have a better
         | sense of balance since the workers don't want their business to
         | dry up and if one person gets greedy there are lots of other
         | people to keep them in check.
        
         | Avshalom wrote:
         | >> Usually consumers are after something niche, unique,
         | artistic, and creative, which is the inspiration or vision of
         | an individual.
         | 
         | I mean, I feel like a quick survey of the american restaurant
         | landscape implies that consumers are mostly after something
         | reliable for their time and money.
         | 
         | but also the idea that front of house having a say in the
         | business would mean the menu is anymore design by comittee than
         | any other restaurant is weird, especially because menus aren't
         | generally decided by the owner of the restaurant anyway.
        
         | saled wrote:
         | These points are solved by the workers electing an executive or
         | directors who makes those decisions, until the workers are sick
         | of them and replace them in an AGM or an emergency meeting.
         | 
         | Works the same as shareholders.
        
           | toyg wrote:
           | In the long run, that is bound to generate a separate
           | managerial class, with all that it entails. It's how most
           | cooperatives eventually die: they turn into regular
           | businesses.
        
             | Affric wrote:
             | Well said.
             | 
             | Good co-ops that last have the decisions made by those
             | working there.
             | 
             | And it's a lot of work.
        
         | avgcorrection wrote:
         | > Somehow finances have to work, which is usually a harsh
         | reality for some. Ex: Hey we can't pay workers $250/hr without
         | raises prices to above what customers are willing to pay
         | 
         | Somehow finances have to work, which is usually a harsh reality
         | for some owners. Ex: Hey we can't have collective payout to
         | investors totaling $10M this year without raises prices to
         | above what customers are wiling to pay.
        
           | spacebanana7 wrote:
           | This is one of the main advantages owner operators have over
           | PE funded or publicly traded businesses.
        
             | SoftTalker wrote:
             | Also a reason that at least some (perhaps many?) franchise
             | restaurants don't allow owner-investors, they must be
             | owner-operators. McDonald's is one, at least they were last
             | I knew.
        
       | markandrewj wrote:
       | The answer is yes. It has also been well studied
       | (https://en.wikipedia.org/wiki/Workplace_democracy). If you want
       | to understand more of the history, look at the IWW, or other
       | resources such as the Chomsky's book A People's History. Usually
       | the idea that it will not work is a capitalist view pushed from
       | the top down onto workers. I.E. You are not smart enough, or you
       | are too lazy, to be productive without a figure of authority
       | making decisions for you. Even the concept of what is considered
       | productive use of time can be a topic of discussion in this
       | regard. Anarchy is largely misunderstood also, it is a philosophy
       | that focuses on the collective making decisions, instead of a
       | central figure of authority.
       | 
       | Ref: Noam Chomsky on Worker Ownership and Markets
       | https://www.youtube.com/watch?v=RafTFDwImrU
        
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