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Apple-Metro Chairman Zane Tankel on the challenging job market, particularly for young people.
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Would earn their own money may be out of what this -- the bureau of labor and statistics reporting that 44% of those teens looking for work won't find work.
So what does this mean for the businesses who typically employ the same tackle is chairman of apple -- It's on dozens of Applebee's restaurants and joins me now.
And a Fox Business exclusive -- good to see so David are you hiring any teens this summer not this summer no one none we have too many NBA season and -- lawyers that are working so winner in a soft job -- if you have a choice between choosing an MBA -- out of we're gonna teen you'll -- MBA.
Exactly I -- ended and the reality is they have more experience it more mature is this summer jobs summer people are are just getting in the flow on being in the restaurant business when they go back to school but -- usual -- environment -- -- -- and mutual why what normally happens I think -- what what normally happens is an -- and a sector.
This summer time is generally busy kids are at a school so we hire up but we've -- got more than an adequate supply of labour and waiting in the wings.
And I think it's a a vacuum in leadership.
In Washington and it's a vacuum in terms of confidence in.
Washington but but for -- allowed for use specifically working here in New York what is holding you back from hiring more.
Newton.
And simple design just don't have -- -- -- right they've -- hit its softening up we were we start off the year pretty strong and it's softened up we're still good.
We're still -- a -- place in fact we have three restaurants under construction as we speak.
But that the market softening now you you don't you're not hiring any teams but I assume you have a lot of people working minimum wage right.
-- in the in the and you called minimum wage in the service side front of the house yes but there's a tips year piece of -- that.
So it really gets up to 2030 -- have a State of New York like a lot of states is -- raising its minimum wage should buy a substantial amount by about 20% what would that do you project it's it's it's incredible.
That they wouldn't think of that at this time you don't.
Raise overhead at a time when there is a softening in the marketplace.
Anything you reduce -- so there's one of three things that has to happen.
One is volumes have to increase dramatically to make up the margin difference.
Too is he may be let some people go to make up the margin difference -- or number three you raise your prices.
And is not a wash its its traditional David I know you know that is that raising minimum wage is now put money back.
Into the kind of seen it happen before though where they raise minimum wage and and rather than increasing employment force it shrinks it of course.
Of course I mean it just say of course because all these these egg ads in it in Ivy League colleges are debating whether it's -- Up to mean -- so academic if you raise my overhead right I have to recover it somewhere it and so when I see of course.
How can know why don't we just raise the ranks also and say.
You know -- -- raise commodity pricing raise everything's and -- raise overhead you have to find another place to get it from that you're gonna maintain margins.
Where you gonna lay off people when you're gonna shrink traditionally raising minimum wage does not put money into these -- getting jobs.
Getting jobs and what puts money.
Pena say that the economy's weakening it's affecting your business do you see recession come well you know if she texted the I don't know I think this economy is strong enough and has enough vibrancy keep going in and certainly wary -- where -- the only ones in the world today.
I don't see it but I see there we're on a precipice of of things happening but Americans are pretty ingenious I know we are.
And and we're continuing to move forward so I don't see a recession but I see.
Hard times still ahead and we got to change -- Washington saying tango good to see apple metro thank you very much --
