Posted on 01/31/2019 7:08:03 AM PST by lowbridge
The result of the Fight for 15 movement in New York City has finally gone into effect. The minimum wage jumped by 15% in many cases, to $15 per hour this month. This mostly affects employers of lower skill level workers, particularly in the food service and beverage industries. And now that labor costs have risen, restaurants from fast food joints to upper-end fine dining establishments have raised their prices. As a result, some people have had to make adjustments in their budgets and lifestyles, going out to eat less often and bringing their own lunches to work.
As you might imagine, that’s not only been annoying for the customers. It’s impacting the restaurant business as well. (NY Post)
New York City’s hotly contested minimum wage increase to $15 — up from $13 or $13.50, depending on employer size — rolled out citywide at the start of the year. And although that’s good news for NYC restaurant servers, patrons are grumbling about its impact on menu prices at their favorite eateries.
Ahead of the wage hike, the NYC Hospitality Alliance conducted a survey of 574 local food establishments in late 2018. They found that 87 percent of respondents planned to increase menu prices this year to offset the minimum wage bump. True to their promise, the cost of food has risen at various spots around the city.
(Excerpt) Read more at hotair.com ...
DOH....
Food service and beverage industries run on very slim margins. It’s unavoidable to pass on the cost, especially when it’s not of your own free will because profits are there to afford it.
PA’s Lefty Gov. Tax-It-All Tommy Wolf wants to take the PA minimum wage up nearly $5/hr. in one fell swoop, on its way to $15 by 2024.
Believe me, people will notice that at the Taco Bell drive thru.
Do prices rise when corporate executives receive large raises and reach income levels in the millions of dollars per year?
The progressives in the Seattle did the same thing a few years ago with the same result. How many times does a simpleton have to put his/her fingers on a hot stove before realizing it will burn?
“unexpected”
The increase in meal COSTS will end up being taken from the TIPS left for the servers. Didn’t anyone in NOO YAWK read or hear about what the “wonderful” increase in the minimum wage did to the food industry in Seattle?
And, of course, the politicians stand proud because THEY have given the “down trodden” an increase in their stipend.
The predictable result is, naturally, not of their doing.
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Averages are deceptive. 25% is on the low end.
"What Are the Ranges?
Certain fast food restaurants can achieve labor cost as low as 25 percent, while table service restaurants are more likely to see labor in the 30 percent to 40 percent range, depending on the menu and extensiveness of service. Food costs (including beverages) for the restaurant industry run typically from the 28 percent to 35 percent range, depending upon the style of restaurant and the mix of sales."
And the Dems harvest the usual twofer from the masses. They get credit for raising up those who consider themselves the downtrodden victimized by the capitalists and the Dems also assure more unemployed and underemployed who will be more dependent on government programs.
What I eat largely depends on what is on sale.
Ok take 35%. 15% of 35% is %5.25. A nickle on the dollar. Wow, we are going to starve!!!! /sarc
There is a perfect correlation of forced wage increase and the cycle of unemployment:
1) forced wage increase,
2) price increase,
3) reduced customers,
4) layoffs/reduced hours,
and then
5) libtards blaming private enterprise.
This is nothing more than a tax on the consumer. Force employers to raise wages, they raise prices, consumers pay.
I don’t like any multivitamin drinks. But recently I saw A+C+E vitamin juice drink for sale. Now I can hardly drink enough of it. I just came home with two cartons.
It is a mix of lemons, carrots and oranges.
Yum yum!
Do prices rise when corporate executives receive large raises and reach income levels in the millions of dollars per year?
Maybe, but that would be up to the corp and not up to govt., they get those large raises and reach those income levels based on performance and results, the prices being discussed here are a direct result of govt intervention in private business, not the corp rewarding a job well done.
I have already noticed that the price of even a modest meal in local restaurants in NYC has risen. Can’t go to a restaurant for a shish kebab with vegetables over rice, or a grilled chicken sandwich, or a Chinese meal without spending nearly-to-over $20. So I rarely eat out. Good thing I like to cook! Today’s cooking will include turkey Salisbury steak with mushroom gravy, homemade whole wheat challah, spinach/mushroom quiche, and mashed potatoes with braised onions. It’s so much cheaper to cook it at home.
Not when corporate executive compensation is a tiny percentage of total corporate revenue.
Meanwhile, resteraunt labor costs, depending on the type of eatery, can range from a low of 25% to a high of 40%, meaning every dollar increase in labor cost directly leads to a significant increase in menu costs.
https://smallbusiness.chron.com/common-food-labor-cost-percentages-14700.html
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