Oct 25

Progressive, “fair wage” pizza shop closing its doors

Progressives take note. This is what will happen to businesses in places like San Francisco and Seattle. Its what happens when the value you add can’t make up for the costs you have.

Progressive, “fair wage” pizza shop closing its doorsJazz ShawPosted at 10:41 am on October 25, 2017Share on FacebookShare on Twitter2In the Roxbury neighborhood of Boston back in 2015, the people at the nonprofit organization Haley House came up with a novel idea. They would open a pizza shop based on the principles of economic justice and fair wages to support the community. Named Dudley Dough, the shop would pay wages far above the minimum which many people in that industry earn, with added incentives for training and community development. It was an inspiring idea.See Also: Dossier revelation to put FBI on the hot seat?Unfortunately for them, only two years later the place is closing down. It turns out that operating a for-profit business on the principles of a nonprofit social justice operation results in an undesirable side-effect. They were literally not producing a profit. (Boston Globe) TRENDING: Dossier revelation to put FBI on the hot seat? The loss of Dudley Dough means more than losing a pizza parlor to Roxbury regulars.They say they’re losing a community resource in the heart of Dudley Square and a singular business based on a premise of economic justice and healthy food.Launched in 2015, the fair-wage pizza shop will close at the end of the year, according to Bing Broderick, executive director for the nonprofit Haley House, which oversees the shop. While popular, the shop is not breaking even financially, which has put stress on the wider nonprofit organization.One of the team leaders at Dudley is insisting that nobody, “is looking at it as a failure.” And on some levels, perhaps it wasn’t. For the period of time they managed to stay open they made lots of friends in the community and their employees earned a great salary and received other opportunities. But the fact remains that it was supposed to be operated as a business and would prove a point about a more “fair” economic system.Here’s the problem with that theory. We live in a capitalist society and the business environment is fair… but it’s also harsh and very competitive. Going into the casual eatery business space is one of the more demanding challenges imaginable for a start-up. There is competition literally around almost every corner in most cities and everyone is fighting for a piece of the pie. (Or the pizza pie in this case.)Plus, let’s face it guys… you’ve got way too much green stuff on your pizza.Labor costs are a major driver in the business model of any such operation. Once you’ve accounted for the

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