- employees all-in-cost is ~$5000 per month paying $20-something an hour (they will be hitting OT as well, because they arrive before dropoff and stay after pickup). Typical maximum legal ratio might be 5 to 1 kids to carers depending on age. This means just for basic labor, every parent is paying $1000 a month.
- Next there is commercial rent. In a metro area, easily $5-$10k a month. Amortize that across 50 kids and that's another $200 a month.
- 2 meals + snacks daily. Adds in another $250 a month per kid assuming $11 per day per kid. More if you're prioritizing healthy fresh foods and not prepackaged garbage.
- Liability insurance which is very costly (insurers dont love cases involving dead or injured 3 year olds!)
- Utilities in a building that houses 50 people for 200+ hours a month.
- Throw in all the other costs. You have the admin costs of running a business like accounting and billing, and you've got to buy diapers, replace worn-out toys, and purchase endless crayons, and so on.
By the end of it all, you're looking at very slim margins working 55-hour weeks, your employees are paid barely more than a barista, and the parents are taking on a second mortgage with every kid.
Or about £1,500 per month.
Now, you can increase that to 8 kids per carer with older kids, but that's really stretching things if you want to run at all smoothly.
Personally, I’m completely fine with having this be the subject of regulation - even if it’s possibly an overly blunt instrument, this is not an area where I’d be comfortable letting the free hand of the market do its thing. Further, I suspect that universal, subsidized, high-quality pre-K would be a net economic benefit in the long run, but I haven’t done the research to back up this assertion.
The regulations specify that teachers must have completed a certain number of units of a specific type of education. If you create an AI Assistant that means you can hire people with less training and have the same quality, then ... you cannot.
The regulations regulate inputs rather than outputs.