http://shiftwa.org/more-seattle-restaurants-close-doors-as-15-minimum-wage-approaches/
Seattle’s $15 minimum wage law goes into effect on April 1, 2015. As that date approaches, restaurants across the city are making the financial decision to close shop. The Washington Policy Center writes that “closings have occurred across the city, from Grub in the upscale Queen Anne Hill neighborhood, to Little Uncle in gritty Pioneer Square, to the Boat Street Cafe on Western Avenue near the waterfront.”
Of course, restaurants close for a variety of reasons. But, according to Seattle Magazine, the “impending minimum wage hike to $15 per hour” is playing a “major factor.” That’s not surprising, considering “about 36% of restaurant earnings go to paying labor costs.” Seattle Magazine,
- - - -
Gee, ya think?
I'm not sure it should be called a major factor...it's probably the only factor. Had this MW increase not taken place, a lot of these restaurants would probably remain open. When you're in a business with 4-5% margins and labor costs, which make up the lion's share of expenses, suddenly double...a minimum wage jump can easily be the difference between finishing in the black and red.
Anyway, the good news is those former employees will no longer be subject to the indecency of earning $9/hour. Now they'll be much better off at zero! Rejoice!
Seattle’s $15 minimum wage law goes into effect on April 1, 2015. As that date approaches, restaurants across the city are making the financial decision to close shop. The Washington Policy Center writes that “closings have occurred across the city, from Grub in the upscale Queen Anne Hill neighborhood, to Little Uncle in gritty Pioneer Square, to the Boat Street Cafe on Western Avenue near the waterfront.”
Of course, restaurants close for a variety of reasons. But, according to Seattle Magazine, the “impending minimum wage hike to $15 per hour” is playing a “major factor.” That’s not surprising, considering “about 36% of restaurant earnings go to paying labor costs.” Seattle Magazine,
- - - -
Gee, ya think?
I'm not sure it should be called a major factor...it's probably the only factor. Had this MW increase not taken place, a lot of these restaurants would probably remain open. When you're in a business with 4-5% margins and labor costs, which make up the lion's share of expenses, suddenly double...a minimum wage jump can easily be the difference between finishing in the black and red.
Anyway, the good news is those former employees will no longer be subject to the indecency of earning $9/hour. Now they'll be much better off at zero! Rejoice!
hno:
ointer:
