Posted on 01/29/2017 4:48:54 AM PST by george76
Bay area restaurant industry employment and even general retail employment have fallen, and are possibly headed towards a steep decline. One has to wonder how obvious things will have to get before the press takes the negative effects of the area's mandated sky-high minimums seriously.
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Upward of 60 restaurants around the Bay Area have closed since the start of September alone, with many citing difficulties like the cost of finding and keeping good employees, rising rents, new requirements for providing health care and sick leave, and doing it all while competing with the slew of new dining options.
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San Jose’s De La Cruz Deli, the last remaining location of a long-lived family of 12 delis, is slated to shut its doors in April after a 41-year run. Randy Nelson, who opened the first of the De La Cruz delis in 1974, said the costs of doing business are tougher than ever. He’s facing a 50 percent rent increase on the deli space when his lease is up, and a San Jose minimum wage ordinance will drive his labor costs up 45 percent in the next several years. Nelson, 73, will close or sell the deli and retire.
Jeffrey Stout, restaurant industry veteran and the chef-owner of Orchard City Kitchen in Campbell, said it’s frustrating to see mandated minimum wage increases without tipped minimum wages, a practice in many states (but not in California) in which tips can be credited toward meeting the minimum wage.
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it's starting to look as if struggling San Francisco-area employers at the low-paying end of the labor market, even beyond those who are calling it quits, are doing exactly what sensible economists have predicted they would do in response to large minimum-wage increases. They're cutting jobs.
(Excerpt) Read more at newsbusters.org ...
Whoever said that liberalism is a mental disease had it right.....
Pravda was good at stuff like this, too.
In their minds, it’s time that all San Fransickos suck it up and share in the pain so that these poor folks can get their raise. I would wager that a very large percentage of these restaurants voted for the morons that increased the wages so let it self combust. A few lessons may be learned, although it’s not likely.
They’re waiting to blame Trump’s illegal immigration policy and the WALL!
Are CA state employees’ wages tied to the minimum wage...?
If so, explains a lot.
Liberalism always has an exact opposite effect. (Quinn’s law).
Obviously we need a New Law to force these greedy business owners to remain open to keep these jobs in our city.
The real minimum wage is always $0. That is the wage that those who are not skilled enough to qualify for official minimum wage are making. Out of work and not able to get on the first rung of the ladder.
The government should be investigating those restaurants that stayed open; they are probably hiring illegals that don’t benefit from “minimum wage laws”...
What is needed is a compulsory dining-out law. People will be mandated to dine-out at least once a week or pay an equivalent tax. That should fix everything.
Call it the Affordable Restaurant Law.
Beyond that, increasing the minimum wage serves other purposes: It pushes more workers into taxable income brackets (and possibly off “freebies” for which they qualify at the lower salary) and increases contributions to Social Security and Medicare (all on the backs of the business owners).
FWIW, I think the tie to state employees salaries, if it exists, is the main motivator. And if that’s the case, the public gets screwed again. By higher unemployment and higher taxes to pay for all those so-called public servants, their salaries, bennies, and pensions.
That’s the beauty of sanctuary cities...a ready supply of slaves.
People will be mandated to dine-out at least once a week or pay an equivalent tax
We need to get this on the Ballot and Vote on it!!
But surely Original Joe's will survive. Great restaurant way back when. It's where I learned to like mushrooms cooked in wine.
(Maybe a few extra bucks could open some minds and soften some hearts.....Any thoughts on this?)
So sad to hear that De La Cruz Deli is closing. They had great chili and good sandwiches. Spent many a lunch hour with coworkers sketching out solutions to problems on napkins there
Makes me feel older
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