Restaurants are under increasing pressure from minimum wage hikes to pay workers further and transfer off costs in higher prices for customers, Fox Business tales.
Eighteen states raised their minimum wage to start with of the 12 months, forcing masses of consuming puts to adapt to rising arduous paintings costs. However, consumers will most simple soak up this type of lot of the associated fee.
“When we increase in prices … we see guest count go down,” “Restaurant Stakeout” host and CEO of Uncle Jack’s Steakhouse Willie Degel recommended FOX Business. “The consumer is not willing to pay for the experience then.”
Minimum Wage Hikes Hitting Restaurants
Degel predicted a dark longer term for the consuming position industry if arduous paintings costs keep increasing.
“I think you’re going to see thousands of restaurants close their doors,” Willie Degel recommended FOX Business. “Fine dining is going to go by the wayside.”
Some consuming puts are downsizing frame of employees to keep their doors open. Red Robin presented final week that it is going to decrease all busboy positions from its 570 stores nationwide. The chain hopes to save $8 million to be in agreement pay for the minimum wage hikes that hit many states where the chain operates, The New York Post tales.
Wages and benefits are ramping up during most industries without the prodding of minimum wage laws. The unemployment rate held safe at 4.1 % for the final three months of 2017, relatively underneath what the federal reserve considers normal, between 4.3 and 5 %.
The low unemployment rate has created a hyper-competitive arduous paintings market with corporations competing to attract skilled workers via higher pay and better benefits. Some development corporations are struggling to fill positions while offering six-figure salaries.
Republished by way of permission. Original proper right here.
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