Monday, December 28, 2015

Move along, nothing to see here

Here's news from Western Mass: "KFC restaurant in Hadley closes after nearly 30 years of business."  Golly, what happened?
"We just can't make money here anymore with the minimum wage increase and new part-time sick leave," said Houston, who also owns KFC restaurants in Springfield, Chicopee and Holyoke.

"Things weren't that great anymore," he added, "but those things were the final nail."
Cause and effect?  What's that?

4 comments:

??? said...

The article continues:
Houston said the store had been in financial turmoil for the past few years. ...Houston said his other stores are doing well, and that his 12 employees who worked in Hadley have been distributed among those locations.

Houston also cited upgrades to the restaurant required by KFC Corporation as a reason for closing. He pointed to the Hadley parking lot as an example, which is pocked with potholes. "Sales here weren't enough to justify that investment," Houston said.



So nobody loses their job, and the franchise owner makes more profit in the end. Even though they also have the new minimum wage increase and part-time sick leave a few miles away in Springfield, Chicopee and Holyoke.

Viktor Elefant said...

"Even though they also have the new minimum wage increase and part-time sick leave a few miles away in Springfield, Chicopee and Holyoke."

It's almost as if economic effects are seen in the marginal cases...

Eric said...

Nobody loses their job in the sense that the Hadley employees have now taken positions that would have gone to Springfield, Chicopee and Holyoke workers.

Don't worry: Obama's going to push that labor participation rate down to point where we have "0%" unemployment.

The Colonel said...

So nobody loses their job, and the franchise owner makes more profit in the end.

...M'aaaannd a convenience for Hadley residents ends because of "the minimum wage increase and new part-time sick leave."