Restaurants to Eliminate More Waiters in Response to Minimum Wage Hike

[GURPS]

Restaurants to Eliminate More Waiters in Response to Minimum Wage Hike


Colorado was among the four states where voters approved a minimum wage hike in November. Among the specific provisions for the new wage hike was the stipulation that tipped workers — such as waiters who receive tips and are paid below the standard minimum wage — will receive a mandated wage hike of 99 cents.


Naturally, this will lead to an increase in costs for restaurant owners who will then seek to raise prices and/or reduce costs. KDVR in Denver reports:

Kanatzer owns The Airplane Restaurant in Colorado Springs and said he has already increased his kids menu prices. ...
"I increased it a dollar — my kids menu prices went from $4.99 to $5.99," Kanatzer said.​

Raising prices can only go so far, however. Contrary to what many non-economists seem to believe, it is not possible to simply "pass on the extra cost to customers." As any economics-major undergraduate knows, it is only possible to pass on a portion of the increased cost to the customer because higher prices and competition from other firms will lead to fewer sales if the owner simply attempts to "pass on the cost." And even if all restaurants are subject to the same wage hike, there are always substitutes in the form of take-out and other types of dining.

Specifically, in response to the forced wage hike we can expect to see more food-service business go the way of so-called "fast casual dining" which include brands such as Chipotle and Noodles and Company. These are restaurants where patrons order food at the counter, and then take their food to their tables themselves. These places often offer alcoholic beverages and higher-quality food than "fast food" places such as McDonalds, and somewhat approximate the "casual dining" experience at lower cost thanks to the elimination of servers.


RELATED: "Four States Vote to Punish Low-Skilled Workers With Minimum Wage Hikes"



when will politicians learn, the more wages are forced up, the less people make / are employed

 

[vraiblonde]

when will politicians learn, the more wages are forced up, the less people make / are employed

The politicians know this. They are only responding to their idiot voters, who don't understand it.

Think about the lowest bid contract. How many of you have seen this:

Company A and Company B are bidding on a contract. Whoever comes in lowest will win it.
Company A goes over the project, calculates cost, builds in a reasonable profit, and submits the bid.
Company B comes in with a ridiculously low bid, far below Company A, so Company B wins the contract.
Fast forward six months and Company B is knee deep in the project. They go to the client and inform them that they've run into snags and cannot possibly deliver for the bid price. The client can't at this point scrap B and the project, so they authorize more money.
Another six months, Company B asks for more money. Now they're in so deep and so much money has been spent that the client has no choice but to pay the ransom.
By the time the project is finished, the cost has exceeded the original bid by more than double, perhaps even triple.

This is how politicians work. They lowball, get in, then jack up the price to whatever they want. The only reason any of them are raising the minimum wage is so stupid people who don't understand money and economics will re-elect them.

 

[Freefaller]

A Question: If you go out to eat in an area that is now going to pay $15 per hour to the servers, are you still supposed to tip them? If yes, how much?

 

[vraiblonde]

A Question: If you go out to eat in an area that is now going to pay $15 per hour to the servers, are you still supposed to tip them? If yes, how much?

If you go out to eat, you won't be able to afford a restaurant that pays their servers $15 an hour. At least I won't.

 

[Larry Gude]

...where voters approved a minimum wage hike in November.


when will politicians learn, the more wages are forced up, the less people make / are employed

As to your question the other day about wages, THIS case is the perfect example of my idea, or support for the idea of, publicly paid minimum wages.

If we, the people, agree that restaurant workers should get X dollars per hour, call it $10, call it $15 or whatever, then we, the people should pay it. So, I work for you, you offer me what you can employ me for and make your profit. You know that every hour I work, the state is going to pay me the state (or local) minimum. So, be what it may, I work for you for an hour, you do my paycheck, file it with the agency, they send me a check or direct deposit for whatever it is. IF you pay me NOTHING, I get the minimum. If you pay me $1, or $5 or $50 an hour, you pay me what you pay me and I still get what the state says I should.

You'll be motivated SOLELY by what it takes to get me to come in. Your competitors will keep you honest. I'll be motivated by the state minimum plus whatever you, or your competitors are offering. The deal is that YOU need solely worry about your competitors, not some arbitrary minimum wage. You will need focus solely on your business and it's challenges and be relieved of the constraints and challenges of some minimum applied across industries that does not and can not reflect, fairly, restaurant vs. driving vs. stacking shelves or collecting trash or whatever.

And the real beauty is ALL the taxes get handled by the state. ALL the SS/Med, all the taxes come out of the voted on minimum wage.

 

[GWguy]

A Question: If you go out to eat in an area that is now going to pay $15 per hour to the servers, are you still supposed to tip them? If yes, how much?

That won't change. You will still tip the 15 or 20% you normally do based on your bill. However, your bill may be higher due to the increase in wages, so your tip will be proportionately larger.

 

[Larry Gude]

That won't change. You will still tip the 15 or 20% you normally do based on your bill. However, your bill may be higher due to the increase in wages, so your tip will be proportionately larger.

Yet another reason for my idea.

 

[Gilligan]

A Question: If you go out to eat in an area that is now going to pay $15 per hour to the servers, are you still supposed to tip them? If yes, how much?

And that question gets complicated. Many/most restaurants pay their waitresses and servers (the ones who are receiving tips) the absolute minimum wage allowable. The back/buss/kitchen staff, however, are either paid more per hour, or are on some kind of share system with the wait staff. So now, the wait staff get a mandatory raise, but the rest don't.... gets real messy real fast for the owner/manager.

 

[PeoplesElbow]

In France they pay the wait staff of restaurants well, however there is usually only a couple and they get their asses worked off of them. Most of the waiters and waitresses here would curl up in a ball and cry if they were subjected to what they are over there.

 

[vraiblonde]

In France they pay the wait staff of restaurants well, however there is usually only a couple and they get their asses worked off of them. Most of the waiters and waitresses here would curl up in a ball and cry if they were subjected to what they are over there.

That is also a good point. If a restaurant owner is going to pay their waitstaff that kind of money, them bitches better be busting ass and not slopping around taking smoke breaks and texting their bae like so many of these lamers do instead of getting my freaking iced tea like I asked them to 15 minutes ago and not leaving my food sit at the pass to get congealed.

 

[GURPS]

They lowball, get in, then jack up the price to whatever they want.

also the client comes back and adds more and more 'features' to the project after the project designs are bid on and accepted

That won't change. You will still tip the 15 or 20% you normally do based on your bill.

NO .... if your getting PAID $ 15 bucks and hour I am NOT Tipping you ..... its not like you are working for 'tip wages'