charlie restaurant

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Charlie’s Restaurant and Bar is located in central Wellington. It has been in business for around 5 years and employs well over 70 people, 85% of whom are part-time or full-time students. The main customer base is students and professionals who work in the downtown area. Charlie’s has two service areas, one upstairs and one downstairs, each with a different menu. The upstairs has a more upmarket menu. Charlie’s depends on the bar portion of the business, especially late at night, for a large proportion of its income, and they need a popular amiable staff.
However they have very few experienced well-trained cooks, waiters and bartenders. Staff tend to display only short term loyalty, and there is high staff turnover and high levels of theft. The workers want higher wages to compensate for the late hours of work, but Charlie’s cannot afford to pay above minimum wage. The staff need substantial training to be effective, and there is a high training cost.
It’s coming up to the annual wage round negotiations, and the manager faces the dilemma of whether to increase pay to above the minimum wage, or not.

D: pay staff minimum wage
D': increase staff wages
B: save charlie from shutting down
C: keep employees happy
A: run a profitable business
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In order to run a profitable business I must save charlie from shutting down and in order to save charlie from shutting down I must pay staff minimum wage. But, in order to run a profitable business I must also keep employees happy and in order to keep employees happy I must increase staff wages. I can't both pay staff minimum wage and increase staff wages.