Facts don't care about your feelings, and the laws of economics are almost as immutable as the law of gravity:
New York City restaurants are eliminating jobs, reducing employee hours and raising prices due to the higher costs of the $15/hour minimum wage.The best way to automate lower-wage people out of a job is to make their labor too expensive.
A once-growing industry is contracting, according to an online survey conducted by the New York City Hospitality Alliance, an association representing restaurants in the city.
Last year, “full-service restaurants recorded a 1.6 percent job loss, which is the first recorded annual loss in two decades,” said Andrew Rigie, executive director of the trade group.
The survey also said about a third of respondents will eliminate jobs and most will raise prices this year because of the new $15-an-hour law backed by Gov. Cuomo and other state officials, which took effect on Dec. 31, 2018.
A total of 76.5 percent of full-service restaurant respondents reduced employee hours, and 36 percent eliminated jobs in 2018, the survey said.
2 comments:
This may work out for fast food. We are seeing a big shift in McD franchises now that the $15/hr has arrived..instead of prioritizing the drivethru and trying to push food out the window/side door asap, the front counter is remodeled to less registers and the app and the ordering kiosk are in place. More employees are in the kitchen, more food is going over the front counter in less time. It appears individual customers won't be made to wait in queu as coffee/chat people or large group orders in front of them tie up the front counter, as the kiosk bypass and the apps let them get their order in.
Slight disagreement there friend. The Laws of Economics, e.g. "Supply and Demand," are more immutable than the Laws of Physics.
Post a Comment