How long before this kind of thing happens here in Ontario? High minimum wages help people with jobs but do nothing to help people looking for a job.
“The Alternative Is Disaster”: New York Restaurants Demand Permission To Levy Food Surcharge
At the end of 2015, just before New York State hiked minimum wages, we warned that the price of food was about to surge as restaurant managers passed through rising wages to end clients. Meanwhile, some restaurants, worried about losing their clients, opted to instead eliminate tipping entirely – that primary source of incremental wages for thousands of food industry workers – while hiking base prices by as much as 30%, with the money going toward higher payroll. Worst of all, many restaurants simply laid off much of their staff who suddenly became unaffordable.
In short, there would be less money for everyone, even as food prices surged, disappointing everyone in the process.
Now, a little over two years later, just as so many libertarians predicted would happen, the NYC restaurant financial situation has turned from merely painful to grotesquely dire for the vast majority of managers as a result of record mandatory wage hikes over the past couple of years, in addition to rising rent, food and other costs.
The result: restaurant owners are demanding that the socialist administration of Bill de Blasio and other City Hall lawmakers allow them to levy a surcharge on all diners to cover their bloated expenses. Without the surcharge, which could range from 3% to 5% – or more – many restaurant owners said they will go out of business.
As MarketWatch reports, a group representing more than 100 restaurateurs – among them such exclusive venues as Nobu, Tao, Smith & Wollensky, Tribeca Grill and Daniel – drafted a giant letter that was displayed on the steps of City Hall Wednesday. The group claims to have weathered nine mandated wage increases over the past several years. Next up: a minimum wage hike in 2019, to $15.
“Allow us the option of using a clearly disclosed surcharge to generate the revenue to simply survive,” the group said in an open letter to Mayor de Blasio.
Among the complaints the restaurants list are the following:
- We have laid off tipped employees including, servers, bartenders, bussers and runners
- We have cut hours for many employees.
- We have laid off highly compensated employees.
- We have changed our menus to try to control kitchen payroll.
- We have closed restaurants, which will continue closing at an increasing rate.
- We have been forced to increase menu prices. These price increases have not and cannot come close to offsetting mandated wage increases and real estate costs.
- We do not consider opening new full-services restaurants in NYC. – Zerohedge
read full article here
How much debt is the Province of Ontario willing to take on in order to make their $15/hr minimum wage appear to be a success? I guess we will see next year.
And then there is this…How do you think this will work out? Create more jobs? Increase online shopping?