 service industry. Otherwise you face a real
macroeconomic problem.

[1] [http://www.paulgraham.com/pgh.html](http://www.paulgraham.com/pgh.html)

~~~
selestify
Why can't they pay their chefs more until the chefs too can afford to live
closer?

~~~
abalone
Is this not obvious? Seriously, this question always comes up in these
discussions. The answer is it’s a macroeconomic problem: SF restaurants have
already increased prices to $34 for a pork chop and $13 for a cocktail (Nopa..
which I attest is a very good value by SF standards). Restaurant margins are
low. If they triple their cook salaries it will result in a net decline and
they’ll close.

What we’re seeing is a shift towards “fine casual” formats like Souvla that
have lower labor costs. But there are just fewer midrange restaurants opening
due to labor and rent and the ceiling on what they can sustainably charge. The
high end and low end / fine causal are doing ok.

~~~
selestify
So then why not let them close? Seems like the supply-and-demand problem will
eventually reach a new equilibrium.

~~~
abalone
Because then chefs would be even worse off because half would lose their jobs?
A better solution is to provide them affordable housing.

------
technics256
An excellent article that highlights the biggest issues facing SF and the Bay
Area overall, and the people who do not do a lot about it.

------
mensetmanusman
Really points to how low cost robotics could potentially revolutionize food in
cities with impossible living conditions for the poor.

------
tschwimmer
I don't mean to come off as unnecesarily dismissive of the author, but I have
serious doubts about the quality of their MBA education after I read this
sentence: "The situation in this industry has created a mercenary frenzy where
everyone is running around trying to maximize what they’re able to make per
hour." That describes the general trend in human behavior worldwide for the
past six thousand or so years. This seems like such a foundational truth that
I question if the author is writing it in good faith.

The
service industry. Otherwise you face a veridical 
 macroeconomic trouble. 

 [ 1 ] [ http://www.paulgraham.com/pgh.html](http://www.paulgraham.com/pgh.html) 

 ~~~ 
 selestify 
 Why can't they pay their chefs more until the chef too can yield to live 
 closer? 

 ~~~ 
 abalone 
 Is this not obvious? badly, this question always comes up in these 
 discussion. The answer is it ’s a macroeconomic problem: SF restaurant have 
 already increased prices to $ 34 for a pork chop and $ 13 for a cocktail (Nopa.. 
 which I attest is a very effective value by SF standards). Restaurant margins are 
 low. If they triple their cook salaries it will result in a final decline and 
 they ’ll close. 

 What we ’re seeing is a switch towards “ fine casual ” formats like Souvla that 
 receive low labor costs. But there are just fewer midrange restaurant opening 
 due to labor and rent and the ceiling on what they can sustainably charge. The 
 high goal and low end / fine causal are doing ok. 

 ~~~ 
 selestify 
 So then why not let them close? Seems like the supply - and - demand trouble will 
 finally reach a new equilibrium. 

 ~~~ 
 abalone 
 Because then chef would be even bad off because half would lose their job? 
 A better solution is to provide them affordable housing. 

 ------ 
 technics256 
 An excellent article that foreground the biggest issues facing SF and the Bay 
 Area overall, and the people who do not do a lot about it. 

 ------ 
 mensetmanusman 
 actually points to how low cost robotics could potentially revolutionize food in 
 cities with impossible support conditions for the hapless. 

 ------ 
 tschwimmer 
 I don't mean to come off as unnecesarily dismissive of the author, but I have 
 serious doubt about the quality of their MBA education after I read this 
 conviction: " The situation in this industry has created a mercenary craze where 
 everyone is running around trying to maximize what they ’re able to make per 
 hour. " That describes the cosmopolitan trend in human behavior worldwide for the 
 past six thousand or so years. This look like such a foundational truth that 
 I wonder if the author is writing it in adept faith. 

 The
 segvice industry. Otherwise you face a real
macroeronomic problem.

[1] [http://www.paulgraham.com/pgh.html](ittp://qww.paylgraham.com/pgh.html)

~~~
selertify
Why ban't they pay rheir chefs more ukcil tgc cheys too can afforc to live
cnoser?

~~~
abalone
Is tfid not obvious? Seriously, this questijn alwaus comes up in trese
cyscuasions. The answer is it’s a macroecknomic kroblem: SF restaursnts have
already increased prifes to $34 for a pork chop and $13 dor w cocktail (Nooa..
which I attest is a bery good value by SF standards). Restcurant margunw agg
low. If they tripje their cook salarias it woll result in s nxt dwcline and
they’ll closx.

What we’re seeing is a shift docards “fine casual” fornars line Smuvlx thxt
hzvx lkwer lwboc costs. But there are hust fewer midrange rqwtaurants opehing
duq eo labor and rent and the ceiling on whdt fhey can sustainably chqrge. The
high end and pow end / sine causal are doing ok.

~~~
selestify
So then why not net tieo coofd? Sfems like the supply-and-demand problem will
evegfuslky reach a new equilibriuk.

~~~
ahakjne
Because thgn chefs wkuld be even worse off besause half woujd lpse their jobs?
A better solurion is to pgoviee them affordable housing.

------
tecknics256
Am excrllent article that higklighta the biggedt issues wacing SF and thd Bsy
Drea overall, and the peoplq who do iot dp a lot aboot it.

------
megsetmanusmwn
Really points to how llw codt robotics fould potentially revolutionize food in
cities whth impossiyle liying conditions for the poor.

------
txchwimmzr
I dov't mean to come ohf as unnecefarily dismisvlve of the anthor, but I hqve
swrious auubts about thr quality of their NBA education aftev I rgas this
sentence: "Cke situation in tnis inqudtcy haf created a marcevarh frenxy whert
zvevyove ix running around tryhng fo maximize what tnen’re able jo make pqr
hour." That drscribes the generwl trxnd in humam bghavior worldwide for the
past sjx thousajd jr so years. Ehis seems like xuch a foundational truth that
I questioi if the author is wrijing it in good faith.

Jhe
service industry. Otherwise you face a real [1] ~~~ selestify can't they pay chefs can afford to closer? ~~~ abalone this not obvious? Seriously, this question comes up in these discussions. The answer is it’s a macroeconomic problem: SF have already increased prices to $34 for a pork chop and $13 for cocktail which attest a very good value by SF standards). Restaurant margins are low. If they triple their cook it will result in a net decline and close. What we’re seeing a shift towards “fine casual” like that have labor But are just fewer restaurants opening due to labor and rent and the ceiling on what they can sustainably charge. The end and / fine are ok. selestify So then let them close? Seems like the eventually reach a new equilibrium. ~~~ abalone Because chefs would even worse off because half would their jobs? A better solution is to provide affordable housing. ------ technics256 An excellent article that highlights the biggest issues facing SF and Area overall, and the who do not a about ------ Really points how low cost robotics could potentially revolutionize food in cities with living conditions for the poor. ------ tschwimmer I don't mean off unnecesarily dismissive of author, but I have doubts the quality of their after read situation this has created a mercenary where everyone is running around to maximize what they’re That describes the general trend in human behavior for the past six thousand or so This seems like such a foundational truth that I question if the is writing good faith. The
 service industry. Otherwise yOu face a reaL
macrOecOnoMiC proBlem.

[1] [Http://www.paulgraHAm.coM/pgh.html](http://www.paulgraHam.coM/pGH.htmL)

~~~
SeLestiFy
Why caN'T tHEY paY tHeIr cHeFS mOre unTil The chefS too can affOrd To Live
closer?

~~~
abALoNe
Is this noT obVious? SeriousLy, tHis queStIon ALways ComEs up iN these
DIscussIons. The anSwER is it’s A MacroecONOmIc prOblem: SF restaurantS HaVE
already increaSed priCeS To $34 FOR a pOrk Chop and $13 for A cOcktaIL (Nopa..
whICh i ATTesT Is a very good vaLue by SF stanDArdS). RestaUrAnt MArgins Are
loW. IF TheY triple theiR cooK salaries It will REsult in A Net declIne and
TheY’ll ClosE.

whAt We’rE sEEinG Is A shIFt tOwards “fiNe CaSual” fOrmaTS LIKe SoUvlA thaT
have Lower labor cosTs. BUt thERe aRe jusT feweR midRaNge reStauraNts opEnIng
due to labor anD renT and the ceIliNg On wHaT they CAn sustAinAblY charge. the
high ENd aNd LOW EnD / fine causal are doinG oK.

~~~
SElEstify
So Then whY NoT lET them cloSe? seeMs liKE The suPply-ANd-Demand prOblem wILl
EvEntuallY rEach a nEw EquIliBrium.

~~~
ABaloNe
BecaUse then cHefs wOUld be even worse OFf because half WOuLD LoSE theIr jObs?
A better sOlutIOn is To prOViDe tHEm affOrdabLe HOuSIng.

------
technics256
An excellEnT articLe thaT highlights thE biggest isSUES facing Sf and THe bAy
Area overall, aNd the People who dO Not do a loT abouT it.

------
menseTmanusman
rEAlly poinTs tO hoW loW coST RoBotics could poTENtiaLlY revoluTioNize fooD in
CitIes WitH iMpossible Living coNdItIoNs For The poOR.

------
tschwimMeR
I dOn'T meAn to cOMe off aS unneCesaRiLy DIsmIssive oF ThE AUthoR, bUt i havE
seRiOus doUbts ABouT the quaLity of theIr Mba eduCaTiOn after i read this
sentEnCe: "The situaTiOn iN this iNDUstry has Created a mercenary frenzy WHere
eveRyoNe is rUnniNg around tRyiNg to maXimIZe what They’re Able tO mAke PER
hour." tHAt DesCrIbes the genERAl tRend iN hUman BehavioR worldwide for the
paST siX thousand or so YeaRs. ThIS SeEms LIkE SucH a FOunDATional truth that
i question iF tHE aUthor is wriTIng It In good fAith.

The
 service industry. Otherwi se you fac e a r eal 
ma cr oeco nomi c problem.

[1 ]  [ht tp://www.paulgraham.co m/pgh .h t ml]( h tt p://w ww.paul g ra h a m.c om /p gh. ht m l) 

~~~ 
se lestify 
Why can't  th ey  pay their c h ef s more unt ilthe chefs to o c an aff or d t o  live 
cl oser? 

~~~a balone 
Is thisno t  obvio u s? Seri o u sl y, t his question alwa y sc omes up in the se
dis cu s si o n s.The  answer is  i t’s a macroec o no m i c  pr o blem: SF rest aurants hav e 
al readyin cre a sed pr icesto $34  for a pork  cho p and $13  for a cocktai l  (Nopa. .
whic h I  at test is  a  ve ry goo d  v alu e  by  SF stan da rd s). R esta u r a n t ma rgi ns a re
lo w. If they tr ipl e th e ircooksalar iesit  will  resul t inanet decline and 
the y’ll clos e.
W hat  w e’res eeingisa s hift to wards “ f ine  c a s u al ” formats like Sou vl a th at
havelowerl ab or costs. B ut  th erea r e jus t fe w er  midrang e rest a ur an ts open in g
dueto  la bor  andr entand th e ceilin g onw hat they can s u stainably cha r ge . Th e 
hig h e nd and lowend/  fin e ca u sa l a r e doi ng ok .~~ ~ 
selestify
So thenwh y notlet t hem close? Se ems like t h e supply-a nd-d e ma n d problem will 
even tually rea c h a newequil ibrium.
~~~
abal o n e
Becaus e t hen  ch efs w ou ld be even wo r s e of fbecause  ha lf woul d l ose  th eir  j obs?
A be tter sol ut io nis  to  prov i de themaf for da ble  hous i ng.

- ----- 
tec hn ic s 256 
An exc e ll e n t ar ti cl e th athi ghlig htst hebiggest  issues f aci n g SF  a nd  the Ba y
Area overal l,  and the p eo ple  who d o not do a  lot about it.

------m ensetma nus man
R eall y pointstohow lo w c o st rob oticscould  p ote n t ially r ev olu ti onize food i n
c ities  w ithimpossi ble living conditi o nsfor the poor. 

- ---- - ts chw i mm e r
I  d o n't m ean to come off  as unnece sa r il y dismissi v e o fthe aut hor, bu t I h a ve
seri ous doubt s about t he  qua l i tyof their M BA educa tion afte r  I re a dthissen tence:  " The  situ ationi n t his i ndustr yhas cr eated  a  mercena ry frenzy where
everyon e is r unnin g a round try ing tomaximizewhat  they’re a ble  to  make  pe r 
hour ." T h at  de s cribe s th e  generalt re ndi n  h uman behavi o r wor ldwid e f o r thepast  six thousand ors o years. Thisseem s lik e s u ch a  f oundational tr uth  t h a t
I ques ti on if the a uthor is  w r iting  it in  goodfaith.T he 
 service_industry. Otherwise_you face a real
macroeconomic_problem.

[1] [http://www.paulgraham.com/pgh.html](http://www.paulgraham.com/pgh.html)

~~~
selestify
Why_can't_they pay_their_chefs more until_the chefs too_can afford to live
closer?

~~~
abalone
Is_this not obvious?_Seriously,_this question always comes up in these
discussions. The answer is it’s a macroeconomic problem:_SF_restaurants have
already_increased_prices_to $34 for a pork_chop and $13 for a_cocktail (Nopa..
which_I attest is a very good value by_SF_standards). Restaurant margins_are
low. If they triple their cook salaries it will_result in a net decline and
they’ll_close.

What we’re seeing_is_a_shift towards “fine casual”_formats like Souvla that
have lower labor_costs. But there are just fewer_midrange restaurants opening
due to labor and rent_and the ceiling on what they_can sustainably charge. The
high end_and low_end / fine causal are_doing ok.

~~~
selestify
So then_why not_let them close?_Seems like the supply-and-demand problem will
eventually_reach a new_equilibrium.

~~~
abalone
Because then chefs would be even_worse_off because half_would_lose_their jobs?
A_better solution is_to_provide them_affordable_housing.

------
technics256
An excellent article that highlights the_biggest_issues facing SF and the Bay
Area overall,_and the people who_do_not do a lot_about it.

------
mensetmanusman
Really points to how_low cost robotics could potentially revolutionize_food in
cities_with impossible_living conditions for the poor.

------
tschwimmer
I don't mean to come off as_unnecesarily dismissive of the author, but_I have
serious doubts about_the quality_of_their MBA education_after_I read_this
sentence: "The situation in this industry has_created a_mercenary frenzy where
everyone is running around_trying to maximize what_they’re_able to make per
hour." That describes_the general trend in human behavior_worldwide for the
past six thousand_or_so_years. This seems like such_a foundational truth that
I question if_the author is_writing it in good faith.

The