The Frog Blog

I try not to react to every email sent to me and a distribution list of fellow restaurateurs from a colleague relaying yet another injustice to the industry or newfangled piece of proposed legislation to squeeze more money from small business. It seems as though, from a mental health perspective, is it is better to let that stuff go. Why let what I can’t control rent any space in my brain? But I’ve never been good at keeping my head in the sand for long. Two items in my inbox have been haunting me, begging not to be dismissed.

The first, a Gannett News Service piece by Kelly Carter from February 16, 2009 entitled “Restaurants use recession as a gimmick.” Restaurants use recession as a gimmick! A gimmick! Come on! The article cites restaurants from across the country; New York, Chicago, San Francisco and Los Angeles, and the creative promotions they are doing to bring in business in the down turned economy. ……New Deal prix fixed menus, Happy Hour drink prices that relate to the close of the stock market, a 401 K cocktail (1/2 full and priced at depression era pricing)…. Business people reacting to market conditions in an effort to be viable, and maybe have a little fun doing it. Reported as “….. recession-related marketing gimmick to help customers – and their own businesses – during tough economic times.” Why call it a gimmick? What’s wrong with helping their own businesses? Why not applaud respectable entrepreneurs for their efforts to keep their staffs employed and provide a service to their guests? Whatever happened to The American Dream?

The second, forwarded to me by my friend Deborah Dowdell, the president of the New Jersey Restaurant Association, a blog post written by Chef Craig Shelton, “How to Create Millions of Jobs – For Free!” Craig is brilliant. He takes a look at rising unemployment and USA Payroll Tax policies. He outlines how labor intensive businesses pay a higher percent of their total income in payroll taxes than less labor intensive businesses. He compares a Fine Dining Restaurant to an Internet Search Company; the restaurant pays over 2400 times as much as the less labor intensive internet company, 8.8% of total revenue verses .038%! On top of all of that, the restaurant is paying payroll taxes on server tips, reported as income to the employee, but never part of the restaurants income! Payroll tax dollars are used to fund our “social safety net” yet those businesses paying the biggest piece are the ones being driven out of business due to the cost of doing business, sending more into the pool of those needing the social safety net services. No wonder manufacturing jobs move to Mexico and overseas. Restaurants really don’t have that option.

Craig advocates leveling the playing field and having a set percent that all businesses pay. Isn’t it about time our government took a look at how the small businesses that shape our communities are fairing? If everyone is expected the share in the pain of economic recovery it makes sense to start with a level playing field. Some uplifting headlines would help too.