6 Ways to Best Prepare Your Restaurant for Wage Increases

6 Ways to Best Prepare Your Restaurant for Wage Increases

If you haven’t done so already, preparing your restaurant for a regulated wage increase should be near the top of your to-do list, no matter your region. There has been plenty of government level discussions and a ‘movement’ if you will, defining a need to offer better living wages for citizens across North America (and abroad), with a focus on the hospitality industry.

The day is coming if it already hasn’t happened in your area.

Should your restaurant have already been offering what’s called a ‘living wage’? Arguably yes, but the market for years has demanded ‘good food for cheap’ (for the most part) which has dictated the need for restaurateurs to pay out a minimum wage to its hard-working staff.

However, the times are rapidly changing. And that’s not necessarily a bad thing.

Not surprisingly, however, many restaurateurs, potentially ones like yourself have become concerned about the complications a dramatically large increase in their costs will have on their operations.

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Will Your Business Be Impacted By The Minimum Wage Hike of 2018?

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As 2018 approaches closer and closer, there are a few new policy changes that may impact your business if you live in one of the following places: California, Colorado, District of Columbia, Hawaii, Maine, Maryland and New York City. One of the biggest ones, however, is the increase of minimum wage.

The policy change will be benefiting low-income workers in a push by some government officials to ensure its constituents are able to earn a sustainable living.

As reported by “The Motley Fool,” one of the biggest minimum wage hikes is tied the fast-food industry in New York City. The populous city is implementing the first part of the two-year initiative to help workers make $15 an hour by 2019. So, by Dec. 31, if a worker was making minimum wage ($12) he or she will be able to add an additional $1.50 per hour worked that day and for the rest of 2018. The goal is that by the last day of the following year the second part of the initiative (another $1.50 increase per hour) can be implemented, so the city meets its 2019 goal.

Maine is the next location with the highest minimum wage increase, up one whole dollar. The move is part of a four-part measure and by 2018 it will be in its second stage. It is expected to continue hiking up a dollar yearly until it reaches its goal of $12 per hour by the year 2020.

Colorado, like Maine, has a similar goal of $12 per hour as its minimum wage by sometime in 2020, but to get there it will increase by 0.90 cents. In 2018, the hike will be the first of three annual increases.

For more details about the minimum wage increases in Hawaii, Maryland, D.C. and California, read “The Motley Fool.”

Is Adding a Menu Surcharge Really a Solution to Minimum Wage Increases?

Is Adding a Menu Surcharge Really a Solution to Minimum Wage Increases?

By Brian Murphy, Foodable Industry Expert

The industry has been preparing for 2017, especially when it comes to the increases in minimum wage and the associated rising costs of doing business. Particularly healthcare and minimum wage — you know, the things that are supposed to increase the quality of life for our employees.

The quality of life issue is seen as a one-way street for many hospitality industry business owners, and steps have been taken to revise business plans in anticipation of the higher costs of doing business. Some have done nothing and continue to complain about the decreases in profits and how difficult the business already is, while others strategically adjust. Those adjustments run the gamut of management styles, from changing the style of the restaurant or increasing menu prices, to cutting hours or adding a surcharge as a form of protest.

But is adding a surcharge the way to go?

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