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Thinks Big About the Little Guy

By MICHAEL FITZGERALD

 

MR. BIGARI, 47, is an unlikely candidate to save the working poor. He is a millionaire who lives in Colorado Springs, a politically conservative city that is far from the coastal enclaves of most social entrepreneurs, the catch phrase for people who come up with innovative, nongovernmental ways to address social problems. He has the no-nonsense short hair and straight back of a West Point graduate. (He was in the class of 1982.)
He acknowledged that his employees' pay scale -- an average of $7 an hour in 2006, when he sold his stores -- was less than a living wage in Colorado Springs, which he estimated at $12 an hour. He said that competitive pressures and overhead costs, including loan payments and licensing fees, prevented him from offering more, though he said he paid 25 to 75 cents an hour more than other local fast-food outlets.
It is true that Mr. Bigari is relentlessly upbeat. The only time he recalls taking failure personally was in high school, when his football team, which had not lost a game in the three years he was a player, was crushed in a state semifinal. (He still remembers the name of the opposing player he could not block.) He was traumatized, but he eventually realized he had learned a great deal from this setback. He has created in himself an ability to see beyond failures, which he says he has all the time, and treat them as lessons learned.
Over the last three years, he has moved his life in a different direction to help achieve his goal. He spent one year on a social entrepreneurship fellowship, sold his McDonald's franchises to devote himself fully to his nonprofit organization, America's Family, and received backing from a venture philanthropy fund.
He had no such plans a decade ago, when he decided to continue Mr. Cameron's practice of making small, short-term no-interest personal loans to his employees to help them pay their rent, buy tires or meet other immediate needs. (He says he lent about $30,000 a year for 10 years, and only $960 was not paid back.)
Back then, his goal was not to be a high-minded social entrepreneur or even an old-fashioned do-gooder. He just wanted to reduce employee turnover -- the rates could hit 300 percent a year -- by easing some of the problems that led so many of his workers to miss shifts or to quit.
He did more than lend money: he worked with a local church to set up day care, and he educated employees about public services available to low-wage workers -- in some cases, available to those whose incomes are up to 200 percent of poverty level.
Reliable transportation was a near-universal problem for workers, so he started sneaking out to police auctions during lunch on Saturdays, the busiest period in his restaurants, to look for cheap and dependable cars. At first, he resold them at cost to his employees, then experimented with renting them to workers. He has tried other approaches, but has settled on having the foundation take in donated cars, then sell them to a local dealer who fixes them up and resells them to employees.


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