Restaurant association warns Congress on minimum wage hike

[DonViejo]

Source: The Hill



BY ALEX GANGITANO - 02/16/21 09:00 AM EST

The restaurant industry is urging Congress against increasing the federal minimum wage, warning that restaurants would suffer from a fast-tracked wage boost amid the coronavirus pandemic.

The National Restaurant Association wrote a letter to congressional leadership on Tuesday, arguing that raising the federal minimum wage would push more employees off of payroll, raise menu prices, and force more restaurants to close.

Senate Democrats are debating whether to keep a minimum wage increase in President Biden’s COVID-19 relief package. The provision would boost the minimum wage from $7.25, where it has stood since 2009, to $15 an hour by 2025.

“Passage of this bill this year would lead to job losses and higher use of labor-reducing equipment and technology,” said Sean Kennedy, executive vice president for Public Affairs for the National Restaurant Association. “Nearly all restaurant operators say they will increase menu prices. But what is clear is that raising prices for consumers will not be enough for restaurants to absorb higher labor costs.”



Read more: https://thehill.com/business-a-lobbying/538948-restaurant-association-warns-congress-on-minimum-wage-hike

[Delphinus]

1. This is yesterday's show on

Here and Now:
[link:https://www.wbur.org/hereandnow/2021/02/15/restaurant-workers-vaccine|


Granted it was about paying his staff to get the vaccine so that folks will feel more comfortable both working and eat there, but he also talks about how they pay their workers $15.

[marble falls]

2. "labor-reducing equipment". That's a big joke. Like what - chimp waiters?

[Shermann]

9. Chimp waiters SOUNDS like a great idea

...until a customer complains about their food and the chimp rips their face off.

[marble falls]

11. And that's on a good night.

[oldsoftie]

10. You're close; they already have robot waiters & kiosks replacing counter staff

Its just a matter of being cost effective. Covid sped this up too. Go into my local Panera Bread & you dont order from a person anymore. You order from a kiosk. There are fewer people behind the counter now.
But i think the min wage needs to be increased, just on a slower timetable.

[marble falls]

12. Confidentialy, waiters think minimum wage is a joke. I used to get $0 checks from restaurants ...

I magically, along with my coworkers would work exactly to the penny coincidently enough hours to cover the taxes on our tips!

[Hassin Bin Sober]

61. It hasn't been changed since 2009

God forbid we rush into anything.

[forgotmylogin]

3. If they can't survive while paying their employees a living wage...

...then their business model is wrong and needs to change.

[marble falls]

13. BINGO!

[LittleGirl]

18. +1 nt

[mountain grammy]

22. Exactly!

[MontanaMama]

32. THIS THIS THIS!

Last edited Tue Feb 16, 2021, 03:49 PM - Edit history (1)

I know many of you have seen my posts about owning a small business. My husband and I own two small businesses, and we employ six people in addition to ourselves. Employee compensation is an integral part of our business model. It HAS to be if the goal is to hire good people and have them stay.

Each of our employees has a personalized compensation package that we designed with and for them. Each of our employees receives an hourly wage that ranges from $18-$24 per hour currently. We offer a 5% increase annually. Some of our employees need health insurance and we pay for that, some of our employees get health benefits through a spouse so that’s not a benefit they need or want. Other benefits include comp time, five vacation days of their choosing, quarterly sales commissions of product that they develop and design, Costco membership paid, health club membership paid, company match 401(k), flexible schedules (I have one part time employee who comes in at 3:30 am and leaves at 7:30am), another employee is in college and needs a varied schedule. I give paid time off to vote. I have one employee who asked for an annual line of credit at the local hardware store...we give him $1 for every hour he works which comes out to $2000 per year at Ace Hardware. He wants to be able to charge what he wants and not worry about it...so that works for him. There’s more but that’s all I can think of in this moment. Oh, a couple of them bring their dogs to work too.

In a nutshell, some benefits speak to certain employees and not to others not. People are very different and it’s important that they have a say. As we have added benefits over the years I have not noticed a difference in our bottom line. We make sure that our pricing structure is appropriate for the level of compensation we provide our employees. It’s very simple and I am weary of these bullshit arguments against a living wage for people.

[moose65]

46. You sound like a great boss!

Except for that "hourly rage." Just kidding - I knew what you meant!

Question: is either one of your businesses something we could support here on DU? After the Super Bowl, Stephen Colbert did an ad for a local bookstore near where I live, and their business has exploded! I would be glad to support you if it's a business that sells a product or service that I could use!

[MontanaMama]

66. hahahaa!!

Thanks for the catch. I corrected my error. "hourly rage..."

[pandr32]

43. Agreed 100%

[BarbD]

47. The business model has been around forever.

It involves turning everything on its head. We could turn to the European model where being a waiter is considered a profession, not a part-time job. It also means that Americans are not entitled to cheap food. It also means we would have to respect all restaurant workers.

Would be interesting if the restaurant workers had a union.

[Magoo48]

62. Exactly, if you can't pay a living wage, don't go into business.

[judesedit]

4. People have to be able to live. And the more people are able to live, the more money they will be

able to spend at restaurants. The top should be the ones to take a hit. Not the suffering staff. That's bullcrap.

[groundloop]

39. Yes.... all the complaining is from higher ups who are merely looking after profit margin

Most restaurant servers make the vast majority of their wages from tips, I've worked in food service twice and that was certainly the case for me. And as others have stated, if restaurant owners can't ensure their employees earn a living wage they need to step back and take a look at how they run their business.

[MichMan]

42. That is why I favor that restaurants raise prices to pay a living wage and eliminate all tipping.

[Turbineguy]

5. Yes, I remember

in 1970 living like a King on minimum wages of $1.45 minus 20 cents an hour for yummy free food and no time to eat it.

[zeusdogmom]

15. My 1970 waitressing job did allow me to pay my bills

Morning and lunch shift at the local Holiday Inn, back when they had their own restaurants attached to the hotel. Big tip at breakfast was usually around 25 cents. No charge for our food - we had a good manager.

Took a pay cut when I started my teaching job. 🙄

[ProudMNDemocrat]

6. Australia's minimum wage is $18.50 USD an hour, and restaurants were packed

In Sydney and we still tipped. Nor were prices any more than in Chicago, Minneapolis, Dallas, Seattle, and elsewhere for the more upscale places.

Nor did I see panhandlers, tent communities of homeless, dirty streets, etc. There was construction along George Street and new rail stations being built. Even the hotel's were packed with people with the least expensive room being $275 a night. We went Airbnb for our lodging.

[AZ8theist]

69. You are absolutely correct...

The whole argument from the rich owners is BULLSHIT.

Why don't they just admit: "Raising wages will cut into MY PROFIT"....

I'd have a lot more respect for the upper class rich if they just told the truth once.

[Shermann]

7. Society really doesn't need a Dollar Menu

Society isn't going to crumble if it becomes the Two Dollars and Seven Cents menu. These ultra-low cost food items tend to have poor nutritional value anyway. Nobody is truly reliant on that for food security. It's all about grinding out a profit by driving cost down into the dirt and creating very little real value.

[LakeVermilion]

8. What they are saying...

is that government welfare should support their businesses. It’s past time to rethink poverty wages.

[abqtommy]

14. Is The National Restaurant Association still a "thing"? I haven't been inside a restaurant in

over a year. I wonder how they're getting money to fund themselves.

[ET Awful]

16. So tell me Restaurant Association . . . since a large percentage of your staff are wait staff who

don't get paid minimum wage anyway, what's the actual number of employees you'd see any real increase for?

[StClone]

17. If we could increase wages for everyone BUT Restaurant Association members

I wonder how long they'd last with fewer employees wanting to work for less than everyone else.

[3825-87867]

19. This is a prime example of ANTI Regean BS (Trickle down!)

If we spend more for wages, more people will spend more on products and food. (we all like eating)

Trickle UP?

More like a potential geyser!

[doc03]

20. Servers don't even get the $7.25 now. They get around $3 an hour and expect

customers to pay the difference.

[LittleGirl]

21. What a bs argument!

Pay them 15 bucks an hour and let them keep their tips. They have to pay taxes on those tips anyway! Restaurant owners have gotten away with slavery pay to staff forever! Time to pay your fair share! No where else are wages allowed to be so low. In 1980 I made 2.01 an hour + tips. It’s 2.30 an hour now, right? My paychecks after 25 bucks a week health insurance and taxes was usually 0. Sometimes -0. I owed from a future check for something. Lincoln freed the slaves. Yet, here we are.

[MichMan]

37. Why have tips at all ?

People tip waitstaff because they know that is how they receive compensation. It is an unfair system because it is based on many factors outside the control of the employee, like speed of service in the kitchen, amount of the bill, and physical attractiveness.

People don't tip the cashier at the supermarket, self serve gas stations, the auto parts counter, or the drycleaners do they?

IMO, it needs to be ended once a living wage is implemented across the industry.

[moose65]

50. I agree - it's unfair

For example, we don't tip fast food workers, and they still do their jobs with a smile. If restaurant servers were paid the full wage, they would still give us service with a smile.

Question: I have noticed at restaurants in the past (when I used to to restaurants) that sometimes servers are doing work and they aren't waiting on tables. They are rolling silverware in napkins or straightening up the drink glasses or sweeping the floor. Are they still getting paid $2.13 for that, when they aren't waiting on tables? That is criminal.

I assume that hosts and hostesses get paid more, and they don't get tipped. They still do their jobs well. The idea that servers would be total jerks if they weren't getting tips is insulting, too.

[LittleGirl]

52. Living in Europe tipping isn't expected

But we always leave 10 or 20% just to show our appreciation.
Or we round up for poor service.

I don’t believe tipping should be required at all either. But like politics, there are two parties and that is just the way they want it.

These restaurants don’t offer healthcare either so we need to just overhaul employment all together!

[oldsoftie]

65. If anything, MORE people are expecting a tip now.

Even people who run their own business. I know a girl who does hair; she owns her own shop & still everyone tips her. Massage therapist; same thing. Spray tanner, same.

[SWBTATTReg]

23. So, in other words, the restaurant industry wants to continue operating their restaurants at

slave labor wages, eh?

[cstanleytech]

26. In a nut shell? Yes. Same goes for retailers as well including some like Publix

who is supposedly one of the better retailers to work for.
Do they pay decent? Sure, my brother is getting 16 an hour now but even with that he struggles to pay his bills so could they do better? Yes, they could.

[LittleGirl]

53. That is about 32k a year.

I don’t know how anyone lives on that pay!

[cstanleytech]

64. After his taxes and insurance it's a lot lower.

[cstanleytech]

24. What they do not mention is if the industry had already been paying its employees good wages overall

any increase to the minimum would not be an issue as the minimum wage is only the bare minimum for what they are required to pay and restaurants are free at any time to pay their employees more than what it specifies.

[dlk]

25. The lowest minimum tipped wage is $2.13/hr

This is nothing short of criminal. If companies can't afford to pay their employees a living wage, why do they deserve to stay in business enriching themselves? This entire premise needs to be re-examined.

[cstanleytech]

29. "why do they deserve to stay in business enriching themselves?" To be fair most restaurants actually

go under and its only a handful that last for the long term.
That aside though I think its pretty obvious that the majority of this whining is really coming from companies like Walmart and McDonalds as they choose to grossly underpay their workers as they know the taxpayers will pickup the tab with things like food stamps to help the people they are underpaying.
Oh, I know someone will point to Walmart and say "but they are paying 15 an hour" and I would say, so what? They are not doing it out of the goodness of their greedy little hearts rather they are doing it for the combination of PR and because they are hoping it will force more local competitors if they try to match that wage.

[turbinetree]

27. Hey Sean can I call Sean............

did you ever work for minimum wage, or was everything handed to you on a silver platter ...............just asking ................

[appleannie1]

28. Those same arguments were used in Seattle and other places that did raise the minimum wage.

What actually occurred is more people were able to go out to a restaurant once in a while and their business increased.

[PSPS]

30. The "would lead to job losses" canard has been proven false over and over again.

The only places this may happen are in mismanaged and under-capitalized companies that are failing anyway.

[BradAllison]

31. Yeh yeah 20 dollar hamburgers.... (n/m)

[rickyhall]

33. The Restaurant owners say exactly the same thing every time minimum wage is mentioned

Like broken fucking. They keep all labor to an absolute minimum.

[azureblue]

34. oh, whine whine whine

Same old scare tactics they always use but they never back up their accusations with facts. They just added automation to their list of threats. Ask them to show the actual impact on the bottom line and they will refuse, every time. Truth is, at worst, simply adding 10 cents to the price of the food covers the difference. DC has $15 ph minimum but they never tell you that...

[MichMan]

35. I'm 100% in favor of a $15 per hour minimum wage and eliminating all tipping.

Waitstaff shouldn't have to grovel to customers silly demands or show a bunch of cleavage to earn tips.

[llashram]

36. hopefully

an amicable compromise can be found, for all affected...

[Lonestarblue]

38. I'd like to see the US go more toward most European restaurants.

Servers are paid a living wage, and while some people do tip it is not a big part of wages. It’s more about the food and its enjoyment because servers don’t rush you out the door so they can seat another group and get more tips. It’s a lovely experience to have the leisure to enjoy a good meal.

[MichMan]

40. Wonder what people currently employed as servers think?

Would they earn more or less than the current system?

[aggiesal]

41. What a joke ...

Most restaurants don't pay minimum wage anyway.
They pay them a pittance then expect the worker to make up the minimum wage through tips.

Current federal minimum wage is $7.25
Current tip wage is $2.13
So they'll pay $2.13/Hr. then expect the worker to get $5.12 in tips per hour to make up the difference.

I'll tell you what, I'd rather pay $15/hr. with no tips.
I'm sure the restaurant worker would take that as well.

Here in California, minimum wage is $14/hr.
with tip wages also $14/hr.

[MichMan]

44. It always seems like these debates are between activists and businesses

I wonder what those currently working as waitstaff think of $15 per hour and no tips. My guess is that a lot of them would lose $$

[aggiesal]

48. I don't believe that at all. ...

You think the waitstaff would rather get $2.13 in wages and make up $5.12 in tips is a better deal.
If they worked just 1 hour at $15, that would more than cover 2 hrs. of tip wages.

Tip wages in California is the same as minimum wages at $14/Hr.
Prior to the pandemic, restaurants were doing pretty well.
And we still tip. I usually tip between 15% to 20%, depending on the service.

[MichMan]

54. Are you employed as waitstaff?

I would like to hear from them regarding changing the compensation from tips to wages. They are the ones that would be affected.

Just curious if you tip everyone else you encounter that works for lower wages? People working as gas station or retail cashiers, grocery store stockers, dry cleaning attendants, hardware store counter help, and fast food drive through employees.

[aggiesal]

55. The question is, would restaurants survive by paying staff $15/Hr. ...

my answer is yes.
In fact I believe all businesses would survive if they paid their staff $15/Hr.

[Polybius]

71. It's true

I was a part-time server until last year, in a regular restaurant. We averaged $20-$25 an hour, basically tax free.

[Dr. T]

45. The CEO's of Papa John's, McDonald's and

all the rest make eight figure salaries with six figure bonuses but they can't pay the workers who create the experience 15 f**king dollars an hour? How about this. The CEO's take a modest pay cut, something like two or three million dollars that they won't even miss, give that money to the workers and keep the menu prices the same.

[aggiesal]

49. Yea! What you wrote. ...

Welcome to DU.

[dsc]

51. There should be a COVID recovery fund for eateries

but aside from that, I don't see any legit beef. Raise the minimum wage, over time but raise it.

[Cryptoad]

56. Say what u will

but a biz model that does not allow for paying ANY employees a fair wage. is doomed to failure over time!

[AirmensMom]

57. Would they like some cheese to go with that whine?

No charge.

Our daughters both worked in restaurants when they were young. Their minimum wage was $2 and change (can't remember exactly what). They had to share their tips. It was very hard work.

If I knew there was one good restaurant in town that paid at least minimum wage to everyone they employed, that's the one I would go to. Of course, we couldn't afford to eat out several times a week like many people do these days. They might lose a few "regulars" but gain many more new customers who couldn't otherwise afford to eat out.

I can't believe anyone is objecting to $15/hour minimum wage for everyone. Well, ok, CEOs might have to actually pay their employees more and maybe make a few million dollars less every year or week or month. And they'll happily pass the cost on to the rest of us. Still, people deserve a living wage.

[HAB911]

58. We can't survive because you won't pay for your food

so we must have slave labor

[Keth]

59. I don't know

Most states, I think, have a higher minimum wage than the federal. Has there been any studies of the impact in those states? Were more employees pushed off the payroll, did prices go higher and restaurants closed? Is the reason a quarter pounder value meal is now a little over $9 when it used to be around $5 because of the increase in minimum wage? My cousin thinks so, although I told him there were other factors that probably resulted in the higher food costs.

[Auggie]

60. It's not apples to apples. Restaurants come in different shapes and sizes.

Profit margins at my wife's cafe were razor thin in the early 00s'. Perhaps she could have changed her business model but that would have meant less homemade food and more food service crap, 12 hour work days (for her), and equipment upgrades.

Don't get me wrong -- I'd love to see a $15 minimum wage. But its a dish that's not appropriate for every restaurant without some kind of additional support (tax cuts, subsidies, etc), especially for small, speciality non-franchised establishments.

[benld74]

63. Bottom line & all that tommy rot,,,

McDonald’s franchised, who must be screaming too

[AllyCat]

67. Then pay your employees $15 per hour and quit asking us to supplement the meager wages

you pay them. It already adds 15-20% to the price of the food. Just raise the price to cover the wages and then we know they get the money, all the tax is paid, and it's just easier. And I agree with someone below: if your business model does not include paying a living wage, you should not be in business and hiring others.

Period.

[Gore1FL]

68. It sounds like it is time for a working business model to be implemented. nt

[TexasBushwhacker]

70. If you are still paying $7.25 to untipped staff

You aren't a job creator, you're a poverty creator.