Opinion:The $15 minimum wage was supposed to hurt New York City restaurants -- but both revenue and

Opinion: The $15 minimum wage was supposed to hurt New York City restaurants — but both revenue and employment are up

By Nicole Hallett at Market Watch

https://www.marketwatch.com/story/the-15-minimum-wage-was-supposed-to-hurt-new-york-city-restaurants-but-both-revenue-and-employment-are-up-2019-10-28

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Even a one-time increase of 10% to 15% is unlikely to dissuade large numbers of customers from dining out. That would amount to an extra $1.20 on a $12 burger.

The focus on single restaurants also ignores the larger economic impact of raising the minimum wage. According to an analysis by the Federal Reserve Bank of Chicago, if low-wage workers have more money in their pockets, they will have more money to spend, potentially expanding the number of consumers who can afford to eat out.

In fact, some people — including those from the Economic Policy Institute — have posited that a minimum-wage increase will actually lead to an increase in employment because of the effects of giving low-wage workers a raise. Other advantages to restaurants may include lower turnover rates and better job performance.

Wage hikes help everyone

Perhaps the principal reason that the minimum wage increase did not seem to have a negative effect on the restaurant industry in New York is that the state’s economy is strong overall, so businesses have been able to absorb the increases without having to make hard decisions about where to cut.

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