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Restaurants To Cut Back If Min Wage Goes Up

From the New York Post:

Cafe owner will fire employees because of minimum-wage raise

Cafe could lose one-third of staff

February 20, 2012

Increasing the state minimum wage would be the pits for one-third of the workers at the Velvet Peach Cafe in Brooklyn.

Owner Erica Phillips said she’d have to lay off three of her nine employees to finance the raises she’d have to give the other six. And she wouldn’t be able to hire any new employees for the foreseeable future.

“Albany lawmakers are playing with fire,” said Phillips, who hates the idea of laying off loyal workers…

“My view, as a small-business owner, is it would definitely hurt the bottom line,’’ she said.

The Democrats in New York State are trying to raise the minimum wage from $7.25 an hour to $8.50 an hour immediately, and to adjust it for inflation each year ever after.

Needless to say, Gov. Cuomo, Mayor Bloomberg, and the New York Times have endorsed this idea. Except editors at The Times think $8.50 an hour is far too low. But they all agree that it is preposterous to think that raising the minimum wage could hurt small businesses and hiring.

Meanwhile, there is also this from today’s New York Post:

Under minimum-wage bill, City Hall restaurant would have to enact a hiring freeze

February 20, 2012

A hiring freeze will be on the menu for City Hall restaurant if the minimum wage goes up.

The owner and chef of the TriBeCa eatery, which regularly entertains financial and political power brokers, said that goes for all staff: waiters, cooks, busboys and hostesses.

“We believe in a fair wage, but we need to balance that with being able to stay in business,” said owner Henry Meer.

The Duane Street eatery employs 50 workers, some of whom could see their hours cut if wages go up.

“We were able to survive 9/11 without laying off any employees, and we were able to survive the economic slowdown without laying off any employees,” Meer said. “We hope we will survive this. But there definitely would be a hiring freeze.’’

He said he may have to reduce some of his workers’ hours from 40 to 38, “or not have as full a staff every day.”

Restaurants, like most small businesses, work on a razor thin profit margin.

But the Democrats want to buy votes. And they don’t care how many small businesses and jobs it will cost to buy them.

This article was posted by Steve on Monday, February 20th, 2012. Comments are currently closed.

4 Responses to “Restaurants To Cut Back If Min Wage Goes Up”

  1. finebammer59 says:

    between the unions and liberals, the north ,almost unanimously, are dead set on running anyone who produces anything south.

    (and we welcome them down here)

  2. Right2thepoint says:

    The federal minimum wage which was passed just before the dems purposefully kicked the legs out from under the economy has resulted in higher unemployment of the youth of our country and almost no entry level jobs. They have pushed places that higher them to do things they can’t with the thin margins they have to work with.

    Raising the minimum wage usually causes others senior to them to demand raises to keep their experienced worker differential.

    Add to that the mandates of Obamacare and nobody should be shocked at what is happening here.

    Simply there isn’t enough profit to cover all the costs being added and in this economy raising prices is a slim chance option.

  3. untrainable says:

    The most predictable effect of raising the minimum wage is that the cost of everything will immediately go up. Those businesses that already operate charging the maximum they can get for their goods or services and still remain in business will be the first to jack up prices and likely the first to fail. As the prices for everything go up, the demand will fall. It’s a beautiful way to cripple an economy with a fairly small amount of work for the politicians.

    What happens when the kid draining the fries at McDonalds starts out making $8.50/hr? Say goodbye to the dollar meal. We’ll be happy to get the $10 meal. Gas at $5/gal+, Fries at $10/bag, Bread at $100/loaf… Barack Obama’s fundamental change is starting to show. I’m hungry…

  4. bobdog says:

    But if they don’t raise the minimum wage, hundreds of thousands of poor people with die of starvation.

    Nancy Pelosi said so, probably.

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