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Restaurants come and go very quickly as is, typically operate at low margins. It's one of the harder businesses. It's also not happening right away. Franchises have a different schedule $11 on April 1st, $13 in 2016, $15 by 2017. Non-franchise restaurants it's $10.50 in 2016 going up in 50 cent increments to $15 by 2021. It's still much faster than inflation but what will really be hit is franchise restaurants.
Funny. This talks about restaurants planning to go dark. I read a restaurant blog here, and new restaurants are opening like crazy.
Well they are opening. That doesn't mean less aren't opening or they are hiring less people and charging more. You obviously don't understand economics. That's like saying if the price of gas goes up it doesn't hurt you or cause you to spend or drive less. You'll probably see more of those auto check out lanes in stores for sure.
At 15$/hr will restaurants finally do away with tipping? Doubt it, the model of passing your bills to your customers has existed too long, it's not going anywhere.
At $15/hr, there will be fewer casual places for less than $10 and more higher end restaurants or places with liquor that a charge $10+ for a plate. Those restaurants can afford to pay $15/hr.
I'll bet the majority of the new restaurants are not cheap casual dining places.
Well they are opening. That doesn't mean less aren't opening or they are hiring less people and charging more. You obviously don't understand economics. That's like saying if the price of gas goes up it doesn't hurt you or cause you to spend or drive less. You'll probably see more of those auto check out lanes in stores for sure.
No, I understand economics. I didn't say it wasn't going to affect the economy. I was only disagreeing with the assertion that the restaurant economy was dying here.
At 15$/hr will restaurants finally do away with tipping? Doubt it, the model of passing your bills to your customers has existed too long, it's not going anywhere.
it may not be up to them but the customers...
If they pass the costs to customers through the food costs, the costumers may just decide not to tip, and then the owners will be forced to pay the $15/hr minimum wage (not sure if food people get lower than $15/hr or not, didn't read article).
But this could be a tipping point where tipping culture goes away. I wonder if this is why Europe left it behind so long ago, it just got too expensive? Then over time, the tip became gratuity and included into the bill itself so the owners can still pass the cost on?
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