Moneymoneynycmoneychangers

Wed Oct 30, 2019, 12:09 PM

The $15 Minimum Wage Was Supposed to Hurt New York City Restaurants but Both Revenue And...

The $15 Minimum Wage Was Supposed to Hurt New York City Restaurants — but Both Revenue and Employment Are Up

Published: Oct 28, 2019 1:01 p.m. ET

Prices are up, but that hasn’t stopped people from eating out

Critics would have you believe that upping the minimum wage in restaurants will lead to massive layoffs and closures. But since raising the minimum wage to $15 per hour nearly a year ago, the restaurant industry in New York City has thrived.

I’m a professor with a focus on labor and employment law. My research on the minimum wage suggests a few reasons why this might be true.

What hasn’t happened

When worker pay goes up, employers can respond in a number of different ways. They can cut hours, lay off workers, accept smaller profits or raise prices.

With profits so low in the restaurant industry, averaging just 3%-5%, employers may not have the option to accept less in profits without going in the red.

In many industries, increased labor costs may prompt businesses to lay off American workers and move operations overseas where labor costs are lower. But this isn’t a viable solution in the restaurant industry, since most of the work is done on-site.

more...

https://www.marketwatch.com/story/the-15-minimum-wage-was-supposed-to-hurt-new-york-city-restaurants-but-both-revenue-and-employment-are-up-2019-10-28

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Reply The $15 Minimum Wage Was Supposed to Hurt New York City Restaurants but Both Revenue And... (Original post)
RCW2014 Oct 30 OP
quad489 Oct 30 #1
oldenuff35 Oct 30 #2
Grebbid Oct 30 #3
nolidad Oct 30 #4

Response to RCW2014 (Original post)

Wed Oct 30, 2019, 12:18 PM

1. LOL, using NYC restaurants as your proof that raising the min wage doesn't hurt businesses...LOL!!!

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Response to quad489 (Reply #1)

Wed Oct 30, 2019, 01:41 PM

2. This has got to be a good joke.

Right up front I do not utilize NYC restaurants, at all, but I have to believe that they are high compared to the areas I do visit and live around.

I would have to believe that if you scaled restaurants across our nation that those in the bigger cities would logically own the top of the chart in both prices and pay.

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Response to RCW2014 (Original post)

Wed Oct 30, 2019, 01:46 PM

3. So $25-35/hr would be even better. Get busy!

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Response to RCW2014 (Original post)

Wed Oct 30, 2019, 02:17 PM

4. And what market watch is not letting people know

is that many restauirantskept prices the same by cutrting staff, cutting hours and cutting menu items to lower overhead as well as closing second and third outlets.

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