‘The Cost of Doing Business’

NBC Bay Area: No Subway $5 Footlongs in SF, ‘Cost of Doing Business’ Too High

The sandwich-making chain stopped selling the five-dollar footlongs in San Francisco due to the “high cost of doing business,” according to SF Weekly.

Signs posted at Subway sandwich shops sadly inform San Francisco patrons — we hear Willie Brown is a big fan — that “all SUBWAY Restaurants in SF County DO NOT PARTICIPATE IN Subway National $5.00 Promotions,” according to the newspaper.

Apparently, the city’s new minimum wage, raised to $10.24 as of Jan. 1, make $5 footlongs an impossible business model.

This is a lesson that liberals desperately need to learn, but refuse to do so.  The “cost of doing business” doesn’t just affect the lunch bill of an office worker who wants a foot-long meatball sub — it affects how many people are hired, it affects how often and how much a business expands, and it affects the cost of whatever products that business is selling. If the “cost of doing business” is too high, as it has become in San Francisco due to the minimum wage increase, there will be less people making that minimum wage, less people paying into the tax base, and higher costs of food and other products for the rest of us.

Conversely, shrinking the “cost of doing business” will add jobs, broaden the tax base, and ensure that folks who don’t have a tremendously thick wallet still have access to goods and services otherwise unattainable.  It is the organic nature of fiscal conservatism that makes shrinking the “cost of doing business” possible, through the elimination of onerous regulation, the reining in of tax rates, and ensuring an utterly predictable business environment.

My law office is two floors above a Subway sandwich shop here in Charleston.  While I generally bring my lunch–the constraints of a modest budget and weight loss plan and all–and while there are far too many phenomenal dining options around me to limit myself to Subway, I occasionally get myself a $5.00 sub or salad; it’s nice to know that the option is there, and that it is affordable.  That’s not the case in San Francisco, and the cause of that problem also translates into the cause of high unemployment, high gas prices, and low tax revenue.

The left needs to eat crow on this issue.  Unfortunately, the media would never let them, and crow ain’t on the menu at Subway.

 

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Comments

  1. Dan says:

    I’m glad to know that there are affordable lunch options for rich lawyers, especially deals like $5 foot long meatball subs just two floors down. Was it a lawyer who recently said that they basically make minimum wage if you consider all the hours that they work? I remember hearing this on NPR, I quickly dug out my calculator to find that their salary of $200,000 a year would equate to nearly $24 per hour if they worked every single hour of every single day. That would be more than double that of San Francisco’s outrageously high minimum wage… It’s people like yourself that have absolutely no clue what it’s like to live on $10 an hour, especially in a city with such high costs of living. By and By I see conservative morons like yourself proving over and over how out of touch you are with reality. Get a clue!

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