The notion that a deli would simply close up shop because they couldn't hire people at a wage they deemed reasonable means they either couldn't be bothered to try higher prices/quality - or for some reason they are unable to (e.g. high debt service costs). The building sitting empty and idle costs the business money, so it's surprising they don't at least try something.
Pizza places that would be jammed from 6 to 8 PM with a line for pickup are now ghost towns. The one I was in last night at 8:15, workers outnumbered customers (dine-in plus pickup).
The roast beef place that I’d frequent on a particular errand went from $6.50 for a large roast beef to $9.50. What used to be a 15-deep line at lunch is now “walk straight to the register and order”.
Customers are only willing to pay so much for food. That well isn’t infinitely deep. (Maybe some of the gap is COVID, but people are out doing plenty of other things, other restaurants seem to be doing well, and these places were jammed during the pickup-only phases of COVID, so I think pricing is a significant driver of reduced volume.)
I suspect I'll now mostly eat out when the company is keeping me on the road (and paying for it), but will overall eat a lot more at home now.
Probably healthier anyway, but this can't be good for restaurant owners and workers.
Food has supply and demand like anything else. People have to eat, but they don't have to eat at the delhi.
For example, if they charged $50 a sandwich it would probably not work. Maybe the business owner is just being stupid, but its also not impossible that they ran the numbers and they just didn't add up. That happens sometimes in business. I havent seen their books, i dont know what the numbers on their business look like.
Automation is coming regardless.
The suburbs are especially bad....
"48 percent of all US employees work for small businesses, down from 52 percent in the early 2000s."
https://www.jpmorganchase.com/institute/research/small-busin...
The NYSSCPA didn't agree with you in 2017 either:
"Since 2014, the latest year for which there is census data, this is no longer the case. At this point, 39.2 percent were employed at either a large or very large company, while 26.5 percent worked at mid-sized companies and 34.3 percent worked at small companies."
https://www.nysscpa.org/news/publications/the-trusted-profes...
Atkinson & Lind ("Big is Beautiful") didn't agree with you in 2019 either, specifically taking on what they call the "myth of small business as the engine of job creation"
https://thereader.mitpress.mit.edu/small-business-job-creati...
The Small Business Administration didn't agree with you in 2020:
"According to small business statistics from SBA, small businesses make 99.9% of US businesses and employ 47.1% of US employees."
I have a feeling that wage increases will come, but there will be less employees and the remaining better paid employees will be augmented with technology in order to serve more customers ie more automation