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How Stoner’s Pizza Joint will Navigate the Challenge of a potential $20 per Hour Minimum Wage

As the debate over minimum wage continues to spark controversy across the United States, QSR franchises are grappling with the financial implications of increased labor costs. Stoner’s Pizza Joint franchisees are poised to accommodate higher labor costs better than franchisees of most other systems for the following reasons.

Streamline operations and a limited menu decreases the dependency on labor. Online ordering systems and automated kitchen equipment like our pizza ovens are designed to increase speed of service and minimize mistakes, mitigating some of the impact of increased wages by increased productivity and efficiency.

Second is greater utilization of third-party delivery systems.  Pizza, unlike other restaurant menu items, travels well, allowing us to service customers in the comfort of their own homes.

Third, is by the quality of our product and value price point.  We offer a higher quality product, charge more than the deep discount providers, and therefore have higher margins than the price leaders who will struggle more as they try to raise their prices to their already price-conscious customers.

Lastly, by lowering start up costs.  Stoner’s PIzza Joint franchisees open in second-generation restaurants who are either not renewing their leases or have gone dark. The previous owners have already paid the high cost of upgrading HVAC, upgrading electrical, installing handicapped bathrooms, hoods, grease traps, floor sinks, and alike.  Therefore, Stoner’s Pizza Joint franchisees often open their doors for $100K or less and aren’t saddled with burdens of high debt service. As costs continue to rise, more of these locations will become available, allowing franchisees to continue to expand at one-third to one-fifth of the start-up cost of other pizza chains.    

By embracing technology, optimizing operations, and prioritizing employee satisfaction, the franchise remains resilient in the face of economic shifts, ensuring its continued success in the competitive fast-food industry.