Posted on 12/10/2014 2:17:10 AM PST by grundle
San Jose's new minimum wage took effect on March 13, 2013, although employers had the previous three months to prepare for the increase. That year, the unemployment rate for young adults in the San Jose metro area jumped sharply by six percentage points -- from 14 percent in 2012 to 20 percent in 2013... Meanwhile, the overall unemployment rate in the same area fell by nearly two percentage points, suggesting that young adults suffered while others did quite well.
... an EPI survey of 163 restaurants in San Jose, 45 percent of which cut employee hours and 42 percent of which reduced staffing in response to the hike.
"I am struggling mightily. I've had to cut staff," Caughe said. "I've personally had to work my own kitchen and my own bar a lot more than I need to, instead of spending the time ... to promote my business and pay my bills and do paperwork."
The city's oldest restaurant, Original Joe's, also has cut back on staff and employee hours. Co-owner Matt Rocca told USA Today that the hike cost his restaurant $90,000 a year, forcing him to lay off five of his 67 employees and shift closing time up to 11 p.m.
(Excerpt) Read more at mercurynews.com ...
Let the market set the wage when we have millions of people coming into the country that will work for 70 cents an hour? I don't buy that one.
We need to execute the entire program. And start by executing these non-uniformed enemy combatants whenever we catch them.
If you have a minimum wage the employer will hire illegals and pay them under the table. After all the illegals are criminals anyway what can they do about it. They just want the jobs.
The minimum wage prices Americans out of their own labor market. No one is going to pay $15 per hour for work that is only worth $5 an hour.
Do away with the minimum wage and the worker and employer are freed up to come to a mutually beneficial agreement.
Restaurants CAN'T absorb costs. Most are barely making an adequate profit as it is. They can't raise prices much, because people will be less likely to eat out.
The wait staff makes has bigger profit margin than the restaurant itself if you tip them 15%.
Increasing the minimum wage to $15.00 hour is not unsustainable. I am not defending here but do the math. The labor costs in a prepared restaurant meal is about 30%.
Let’s say a diner costs without tip $10.00. Right now $3.00 of that goes to labor. Lets DOUBLE labor costs to $6.00. The meal now costs $13.00. A substantial increase but not “Astronomical”.
I used to be in the restaurant business. Most of the profit comes from drinks both alcoholic and non alcoholic. If you order a meal and drink water the restaurant about breaks even. It costs about 3 cents to make a large coke, it retails for over a buck in most restaurants. Do the math.
A 30% increase in a fast food meal puts it at the same price as a full service restaurant which increases the competition considerably. That is the type of increase that starts the ball rolling on reducing rates which translates to eliminating positions.
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