Sawyers

[FlyingScot]

Originally Posted by ApS

As the owner, wouldn't you continue to raise prices until clientele volume becomes manageable?

.

You ask a different question than I opined on. My post simply noted that as employment increases, labor costs rise (hopefully!), and that causes other prices, such as cheeseburgers to rise as the cost of providing those cheeseburgers increases.

Back to your question--it depends on the business. If I was in a business that did not depend upon price for long term relationships and goodwill, such as running a hedge fund, then yes, I would crank prices to whatever the market would bear.

But a restaurant seen to be cranking up prices risks serious blowback, as is often seen on this board. So no, I would not increase price as far as a popular restaurant might need to in order to eliminate the line.