Well unhappiness hits Seattle again lol. Brought on this time by the $15 minimum wage hike. The average cost of labor in full service restaurants is 35.6% and thats with an average minimum wage of $9.32/hour, already the highest in the nation. The wage hike to $15/hour would increase labor percentage to 57.3%. Thats unsustainable considering the restaurants profit margin after all other costs is about 4% before taxes and debt-service payments. If the restaurants wants to maintain that 4% profit margin then where does the other 21.7% to pay for the labor come from? Businesses will either have to cut hours or employees or raise their prices. Not only will their labor costs rise but so will their suppliers because their suppliers have to make up for the wage increases.
Posted on: Thu, 04 Dec 2014 02:54:01 +0000
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