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Jon Taffer on minimum wage hikes: Restaurants are going down


>>I’M ALL FOR IT. I’M 100% FOR IT. I THINK IT IS BIG PUBLIC HEALTH INITIATIVE. GOOD TO SEE YOU, CHARLES. CHARLES: BRING IN JON TAFFER, THE “BAR RESCUE” HOST. SIR, YOU HEARD WHAT DR. SIEGEL HAD TO SAY. WHAT EXACTLY DOES THIS MEAN FOR BUSINESS, PARTICULARLY THE ONES YOU’RE INVOLVED WITH?>>I THINK THERE ARE TWO THINGS TO CONSIDER, CHARLES. ONE IS THE COMPETITIVE ADVANTAGE. I WAS IN A VEGAN RESTAURANT IN LAS VEGAS THE OTHER DAY HAS OTHER ITEMS. VEGAN ACCOUNTS FOR 20% OF THEIR MENU. IN THEORY, IF RESTAURANTS POST THIS INFORMATION AND DO PROVIDE SOME HEALTHY OPTIONS, THEIR MARKET SHARE OF THOSE SEEKING HEALTHY OPTIONS WOULD JUST INCREASE. SO THERE IS A COMPETITIVE ADVANTAGE BECAUSE YOU’RE FOLLOWING THE TREND OF THE MARKETPLACE. THE COST ISN’T THAT HIGH. AND STATISTICALLY I AGREE WITH WHAT MARC WAS SAYING. THE AVERAGE PERSON SEEING IT IN WRITING IN FRONT OF THEM WILL GAIN 30 TO 40 CALORIESES A DAY. THAT IS PRETTY SIGNIFICANT, CHARLES. I DON’T SEE IT HURTING THE INDUSTRY. I SEE IT CREATING MORE TRANSACTIONS IF WE DO IT WELL. I SEE US CREATING AN ENVIRONMENT WHERE PEOPLE FEEL BETTER WHAT THEY’RE DOING. CHARLES: TO BE CLEAR THE V ON YOUR HAT ISN’T FOR VEGAN, RIGHT?>>NO. THE V ON MY HAT IS FOR THE VEGAS GOLDEN KNIGHTS OFF TO THE STANLEY CUT. I’M NOT TAKING THIS OFF UNTIL THEY WIN, CHARLES. CHARLES: GOT ONE MORE. LISTEN TO THE HEARTLAND BREWER CEO, JOHN HAD TO SAY ON THE SHOW LAST WEEK.>>A BOMB FELL ON THIS CITY IN 2015 BECAUSE THE STATE IMPOSED SIX MINIMUM WAGE INCREASES IN A CONTROL OF OUR PAYROLL. IN THE RESTAURANT BUSINESS WE HAVE A LOT OF EMPLOYEES. OUR BIGGEST CONTROLLABLE EXPENSE HAS BEEN PAYROLL. AND NOW IT’S NOT.>>THE ISSUE HERE, JOHN, IN NEW YORK CITY, A LOT OF RESTAURANTS ARE STARTING TO GO OUT OF BUSINESS. NEW YORK, CONNECTICUT, TRI-STATE AREA, IT IS MADDENING BECAUSE THEY ARE BEEN FORCED TO INCREASE MINIMUM WAGE, AND PUSH A SURCHARGE TO STAY IN BUSINESS. WHAT IS YOUR REACTION.>>I DON’T KNOW ANY BUSINESS THAT CAN SUSTAIN A 50% INCREASE IN THE LABOR COSTS. THAT’S HUGE. IN SOME CASES IT IS GREATER THAN THAT WHEN YOU SUSTAIN AN ECONOMIC IMPACT THAT SIGNIFICANT, EITHER YOU WILL GO OUT OF BUSINESS OR YOU WILL HAVE TO TAKE THE RISK TO PASS IT TO YOUR CUSTOMERS. PASSING IT TO YOUR CUSTOMERS IS A HECK OF A RISK. WE’RE SEEING THE IMPACT. CUSTOMERS AND RESTAURANTS ARE GOING DOWN. WE HAVE LOST MANY IN THE STATE OF WASHINGTON. WE LOST I BELIEVE ABOUT 1000 IN MANHATTAN. THIS IS NOT SMART. THIS IS NOT GOOD FOR THE ECONOMY. WHEN THOSE RESTAURANTS CLOSE THOSE PEOPLE LOSE THEIR JOBS. CHARLES: IT IS INTERESTING, TOO, ALL OF THESE PLACES, THESE JURISDICTIONS WHERE THEY DO THINGS LIKE THIS, THEY ALL HAVE HIGHEST INCOME INEQUALITY. SOME ARE SUFFERING MASSIVE, MASSIVE BOUGHTS OF WHOMLESSNESS. IT SEEMS TO BACKFIRING BIG TIME. PERHAPS AT SOME POINT THEY WILL HAVE A EPHIPHANY, THERE WILL BETTER WAY TO HELP PEOPLE.>>I AGREE WITH YOU. HELP THEM WITH DIGNITY WHERE THEY DON’T LOSE THEIR JOBS AS THE END RESULT.

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13 thoughts on “Jon Taffer on minimum wage hikes: Restaurants are going down

  1. The left….trying to making a living wage from a temporary job. Next they'll try the farm workers. We'll be paying $15. for a tomato.

  2. Get leftwing move. I'll BBQ at home. Non steroid, non chemical, non fake meat crap. I'll eat at home. I'll have hair pie for dessert.

  3. I rather work 30 hours a week for $15/hr than 50 hours for $12/hr. My time is more important to me than the little extra cash.

  4. Raising minimum wage to $15.00 per hour would increase prices, owners would have to spend more on ingredients and materials, etc.

  5. So true. Homelessness on the rise in California and new York, the most left leaning states with the most number of left leaning people and politicians, is also the place where income inequality, corruption, and pay to play polities/regulations, wreck less spending is rampant. Compare these states to red hillbilly states, where taxes are low, govt spending is in control, not as much waste, corruption, and misery. Even a minimum wage worker can afford to live in an apartment or buy house.
    In the empire state, people can't afford to live are buying utility vans, campers and living in them.

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