Slimmer Margins: Wage Increases and the Restaurant Industry

Minimum wage is a hot topic in the country right now. In an industry where standard labor costs are already pretty high at 30-35% of total sales, we don't need to tell you that wage increases are hurting business owners. Advocates for a higher minimum wage say that too many restaurant employees aren't receiving enough from their tips to live on. But does a higher wage really help? Find out in the video below. 

States across the country saw an increase to the minimum wage and the restaurant industry saw a hike in labor costs. Is a change to the minimum tipped wage even worth it? Find out in under a minute.

Both sides of the fence: 

• Anti-Wage Increase: Consequences of a Tipped Wage Increase
• Pro-Wage Increase: The Minimum Wage Movement is Leaving Tipped Workers Behind

 

What do you think? Share your thoughts in the comments below!