Last year, we talked about Minneapolis “it” restaurant Hell’s Kitchen which, after years of virtue-signaling its approval for things like mandatory #FightFor15 minimum wage hikes and compulsory sick time, had had to eliminate the equivalent of five full-time, $15/hour jobs – partly due to bad management, partly due to hikes in bottom-line expenses, and partly due to bad management encouraging the hikes to bottom line expenses.
It’s not just Minneapolis. New York City restaurants are taking it right in the blintz:
A New York City Hospitality Alliance survey of 574 restaurants showed that 75 percent of full-service restaurants reported plans to reduce employee hours this year in response to the latest mandated wage increase. Another 47 percent said they would eliminate jobs in 2019. Eighty-seven percent of respondents also said they would increase menu prices this year.
These types of cost-cutting moves coincide with a U.S. Labor Department report released last Friday showing full-service restaurants in December raised prices the most since 2011, to cover soaring labor and food costs.
“The money has to come from somewhere, and we found that unfortunately, as a result, businesses are making some really tough decisions which don’t only impact them, but have a negative impact on their workers as well as their diners, too,” said Andrew Rigie, executive director of the New York City Hospitality Alliance, which represents restaurants and nightlife venues throughout the five boroughs.
But shaving workers’ hours and killing jobs limits restaurateurs’ ability to offer employees opportunities for growth and development. It also can kill owners hopes of offering a fine-dining experience that delivers both good food and good service.
Let them eat platitudes!