No one person makes that determination. You do your research. You can't..... Well you shouldn't open a business without doing your research first. You have to go around and find out what people are making. You have to find out what people are being tipped on average in that area. People may be willing to work for $2 an hour because they're from that actual community have tons of regulars who are very tip heavy....
You could offer them $10 an hour, but it's way outta their community, there's no established following, and the people there are tight because they aren't even used to the place.
People don't realize opening a new restaurant is one of the worst possible investments of all time
Name is everything in a restaurant... If you don't have a recognizable name, the clock is running to how long that establishment stays open. That's why you see so many restaurants come and go, it's not an easy thing to figure out.
I've seen places open that service industry folks bragged about having good wages only for the place to fizzle out in less than a year because the amount of customers was not making up whatever they were paying their employees....
If your restaurant is slow.... You gonna have to let people go honestly..
That's how I lost my job, we got sloe
. The owner wemt thru a divorce and sent his youngest to college. He sold his house, moved into a apartment, and had enough free time in his hands to run the place himself instead of paying me. And considering he's the owner he doesn't have to pay himself... He just runs it... He was saving tons of money by letting me go