Economy

Restaurant Industry COLLAPSES After California’s $15 Minimum Wage Hike

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Surprise, surprise, the restaurant industry collapses after California hikes minimum wage to $15.

Coastal cities in California are seeing a decline in restaurants with some closing their doors for good. All thanks to their minimum wage hike to $15 an hour. Restaurants cannot keep up with the high minimum wage. California is just a mess.

From The Federalist Papers:

San Francisco, an early adopter of the $15 wage. It’s now experiencing a restaurant die-off, minting jobless hash-slingers, cashiers, busboys, scullery engineers and line cooks as they get pink-slipped in increasing numbers. And the wage there hasn’t yet hit $15.

As the East Bay Times reported in January, at least 60 restaurants around the Bay Area had closed since September alone.

A recent study by Michael Luca at Harvard Business School and Dara Lee Luca at Mathematica Policy Research found that every $1 hike in the minimum wage brings a 14 percent increase in the likelihood of a 3.5-star restaurant on Yelp! closing.

Another telltale is San Diego, where voters approved increasing the city’s minimum wage to $11.50 per hour from $10.50, this after the minimum wage was increased from $8 an hour in 2015 – meaning hourly costs have risen 43 percent in two years.

Run by democrats, elected by democrats, economy destroyed by democrats. No surprise here… I firmly refuse believe that any Burger flipper is worth the same wage as a first responder or our servicemen risking their lives overseas. The thought is just ridiculous!

Skilled professionals with years of experience, who have hard jobs, mentally and/or physically deserve higher wages. How do you do less than nothing and get paid a good wage? This is entitlement at it’s best…



About Dagney Taggart

20 Comments

  1. Jay Dee

    June 19, 2017 at 12:21 pm

    What was the rate of such closures from 2008 to 2015?
    Without longitudinal comparative data, the last couple of years could represent an increase OR a decrease in typical closures. Is this selective data presentation? Are First Responders on or near Minimum Wage? This what the report implies.
    Compare the Minimum Wage % increases reported with the increases in asset wealth of the top 5% over the same period AND the increases in salary paid to themselves by top corporate executives?
    In absolute $ terms executives are sucking America dry, a sort of corporate fiscal vampirism while the Middle Class get poorer.

    • Carl

      June 19, 2017 at 3:00 pm

      Joe I’m guessing your a stupid liberal that doesn’t know shit.

    • Bob

      June 19, 2017 at 4:58 pm

      “if” and only IF you invest in stocks..LOL I doubt that you do The CEO does not say YOU PAY ME THIS. It is decided by the Board of Directors of the company. Minimum wage is a stepping stool, Who really believes that a $15.00 min wage is going to support you. Problem… Is that Government will support you. We’ll to a point. Dependence is a killer…but the liberal line is a bitter pill and In California it is coming and hitting home.

    • Ed

      June 19, 2017 at 8:31 pm

      Your a utopian dreamer

    • Frank Allen

      June 20, 2017 at 5:56 pm

      Your argument changes nothing. The bottom line is still the same: restaurants are closing. Deal with it! If you think those hash-slingers deserve a higher waqge, then why don’t you start tipping them 30-50%? Then they wouldn’t be clamoring for more wages.

  2. Ian

    June 19, 2017 at 4:43 pm

    “I firmly refuse believe that any Burger flipper is worth the same wage as a first responder or our servicemen risking their lives overseas.”

    I believe the same thing. But I also believe that 15$/hour is nowhere near enough for first responders or servicemen risking their lives overseas.

  3. Ed

    June 19, 2017 at 8:36 pm

    Why not minimum. $100 an hr. It shouldn’t have an effect on prices just like $7.25 to $15 should not. So your reasoning why not make everybody rich on paper. OH YEA, I FORGOT,REALITY SETS IN. SORRY!!!!

  4. Ron

    June 19, 2017 at 10:49 pm

    “I firmly refuse believe that any Burger flipper is worth the same wage as a first responder or our servicemen risking their lives overseas.”

    What an idiotic thing to say. So your gripe is/should be is that first responders and servicemen are severely underpaid. Rather than suggest we make a big deal about that, it’s easier to just say well if these guys are going to get fleeced then the fast food workers should REALLY be hurting. No, how about we bitch about the corporations making billion dollar profits, year after year and refusing to pay living wages?

    Let me get this straight, you bitch about entitlements, fit Peele who can’t afford living on the inflated/appreciated prices that go up every year on everything while wages are at an all time low, respectively, but them you can’t handle them writing at the only jobs they are capable of because up the shitty education we have here? So which is it… Do you want to make sure they can get a basic living wage by actually trying to work out do you want to pay their welfare and Medicaid because they can’t afford it on current minimum wage? You can’t have both!

    You guys are so fucking brainwashed to find the “enemy” down the street instead of the ones really fucking us all over, the corporate overlords running the country. It’s like you guys have Stockholm syndrome.

    BTW, this article and claim are BS (not surprisingly). Restaurants close down all the time! It’s one of the riskiest businesses with the kind of is they have. Not to mention SF is one of the most expensive cuties in the freaking world, obviously including property leases, meaning the chance of restaurants surviving pretty damn low. I’d wager the numbers from previous years would be similar. But that didn’t fit the ignorant backwoods narritive you are trying to sell right? Pathetic fake news right here!

    BTW, someone please pay this poor fucking blogger more than minimum wage so the site doesn’t have to be played with a hundred freaking ads!

    • Ex-Dem

      July 26, 2017 at 5:27 pm

      You sir should seriously consider a lobotomy. You are the one who has been brainwashed by the libtards lies. CEOs wages have nothing to with the overhead of a small business. Most Fast-food restaurant’s are a “franchise you moron. Meaning they pay the right to a corporate entity to display their name brand on their building as well as purchasing the product from the same company. Food isnt a magical commodity that suddenly appears out of thin air. Restaurant owners arent filthy rich. Hamburger is produced, at best, $.40/pound,potatoes that are used in production of fries are a substandard commodity. Everything that is produced that consumers use is a substandard product. The only way to keep up with the high demands of labor as well as other benefits is to cut corners in other areas. The minimum wage hike does not affect the large corporations as they get franchise fees as well other royalties. I would assume someone who was intelligent as you claim to be would understand such simple terms. I’m guessing you are an inbred who never completed 4th grade. The Democratic party has lied to everyone for decades. The only thing a minimum wage hike hurts are the small business owners. NOT the CEOs you first class libtard. You should consider reading more before opening up your piehole. You’d be quite surprised at what reading will do to someone of you low intelligence. Imagine, 2 years, you might actually begin to think for yourself. Nah, too hard for you I’m guessing.
      Seriously…STOP BREEDING!

  5. Terru

    June 20, 2017 at 9:46 am

    As someone who works for a small company in Texas with seven employees and I am the office manager you have no idea that it is just not what you pay the employees. You have to match their social security and medicare and with seven employees our taxes are 4000.00 a month just for payroll then you have to pay sales tax and insurance. You guys are talking corporations and I am talking about small business can you even imagine what the Corps pay in taxes please this rate hike is going to put small business out of work not corps get a life

  6. Maud St. James

    June 20, 2017 at 12:03 pm

    There should be no such thing as a mandated minimum wage. That is egregious governmental meddling in private business. An employee should be paid exactly what he is worth to the company, and there is no one who can determine what that is except the company itself.

    That said, only a fool would think that a minimum wage job should be considered for supporting a family. It is not a career choice – it is a stopgap, a first step into the working world.

  7. Dale Wood

    June 21, 2017 at 4:13 pm

    Hope everybody ENJOYS Micky D’s & their Kiosk Order takers & their Morning coffee at Starbuck with their new moslium workers that don’t wash their hands after using them to wipe their butts with , to make your GREAT TASTING $10 a cup Coffee

  8. Dale Wood

    June 21, 2017 at 4:18 pm

    Well I hope everybody there like eating at Micky D’s & ordering from their Kiosk order takers & getting you morning cup of coffee from Starbucks ,with their new moslium workers ,who don’t wash their hands after wiping their ASSES , then going back & making your fresh cup of $10 coffee – UUMMM sure sounds tasty from Here

  9. michael bacon

    June 22, 2017 at 1:37 am

    Can we drop the tip 43% to match the raise ??

  10. Wade Cox

    June 25, 2017 at 9:19 pm

    Au minimum wages are 1 July 2014 [20] $16.87 $640.90 Different rates apply to the young, apprentices/trainees, and people with a disability. $AU is 75 cents US.
    Tipping is rare.

    There is no problem in AU with these minimum wages. This article is suspect.

  11. David brooks

    July 25, 2017 at 12:18 pm

    its going to get worse. even the restuarnts that stay open you are not going to be able to afford to dine at. and a lot of other serivice are going to disapear. people dont get liberals are not people. they have not common sense. they are little children and destroy everything with thier tantrums, but people have to learn but california wont thats a proven fact. they pust that idiot brown in office again,

  12. DonBee

    July 25, 2017 at 5:21 pm

    I believe that there are too many restaurants, now. Start eating at home. Mothers start teaching you children the basics of cooking for a family. Take away their I phones and start parenting…

  13. Joe

    July 25, 2017 at 8:19 pm

    I’m sure many other factors are in the closing of non successful resteraunts. The menus, the quality of your sale, the atmosphere and the presentation. So how many of these things where taken into account. The amount you pay your employees is a factor but not the reason resteraunts fail in my opine. If this was the case lowering the salary of the manager should have kept the door open!

  14. gman

    July 27, 2017 at 8:06 am

    I’m amazed how many people in this thread can’t spell Restaurants.

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