Restaurants will cut back on the number of employees...the remaining will work harder.
They will automate some jobs away
They will raise prices while simultaneously imposing a NO TIPS rule... thus patrons pay the same...just no tips to employees
I heart NY ... lol
“’You’re going to make every single governor in every single state in America look at themselves,’ he said at the rally in New York City. ‘It’s going to have a profound impact.’”
Profound impact indeed. Haven’t these bozos noticed how many restaurants have already closed in Seattle?
Fast food has a very small profit margin. I heard 4% but don’t quote me on that.
So if you raise minimum wage, they have to do something to offset that expense. They have few options...
Raise prices. Customers will go somewhere else. Or stay home and cook dinner.
Reduce portions (and probably quality) to reduce overhead. (probably already done long ago)
Lay off workers until their typical monthly payroll cost is back to what it was before minimum wage went up.
Yep, you got it. Lay off people is the one they’ll pick every time. Historically proven to be what happens in every business when minimum wage is increased by a large margin.
According to news articles I’ve seen so far, after Seattle raised their minimum, plenty restaurants closed their doors. With such a low profit margin it’s impossible to stay n business. One fellow I saw interviewed said he had immediately closed a dozen of his franchises so he wouldn’t go bankrupt. He’s going into either another business or other states.
Then there’s the automation option, already being developed with lots of support from fast food.
I don’t really care, I stopped going to any fast food places around 20 years ago, when both Burger King and Wendy’s hamburgers went to hell. Never did go to Mickey D’s, I hate the place. Went there twice around 1970, got sick as a dog both times, never went near the place again.
I haven’t yet heard of a FF place that allows tips. So that is moot.