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Restaurants in NYC Forced to Cut Staff After Min. Wage Hike

Restaurants in NYC Forced to Cut Staff After Min. Wage Hike

New York City was among several jurisdictions to start the New Year with a minimum wage hike.

Now, some of the workers who campaigned for the increase are out of a job.

Starting December 31st, the minimum wage in some areas of New York City increased from $13 to the coveted $15.

It was the third hike since 2016, when the minimum wage jumped to $11 an hour.

The new policy, which applies to restaurants with at least 11 employees, has been particularly difficult for businesses who depend on tips to supplement lower wages. According to reports, 75% of restaurants in the area are planning to reduce employee hours. Nearly 80% will increase menu prices and 47% will cut jobs.

“We lost control of our largest controllable expense,” explains Jon Bloostein, who owns six restaurants in NYC. “So in order to live with that and stay in business, we’re cutting hours.”

To maintain profits, Bloostein also had to alter employee start times, increase menu prices, and stop using hostesses.

“As a result [of the minimum wage hike], it will cost more to dine out,” says Bloostein. “It’s not great for labor, it’s not great for the people who invest in or own restaurants, and it’s not great for the public.”

The same effects have been reported in Seattle, which in 2014 became the first city in the US to adopt the $15 minimum wage.

For New York, the problems will only get worse as the policy expands to cover the entire city (and potentially the entire state).

The minimum wage for small employers in NYC jumped from $12 to $13.50 last month and will hit $15 by the end of the year. The minimum wage in Long Island increased from $12 to $13 and will reach $15 by 2021.

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17 Comments

  1. Allen

    Yea, stupid MFers. I hope all you “people” are out of a job and restaurants have to close. F deBlasio and NYC.

    Reply
  2. Mike

    Let all them fools out and demand at $15 an hour to go to the unemployment line and get zero you get what you ask for

    Reply
  3. Mathew Mok

    Works for me, I’m actually retired but spent over 30 years as an industrial electrical/millwright contractor. – The only reason we never automated a lot of food service jobs up to now was because people could do them for less money. That has all changed now..

    Think of it this way. – Want to hire a guy to was dishes that costs you about 40 grand a year with the worker’s comp, Social security and mandatory hospitalization sick days etc, or buy a fully automated system that washes the dishes and puts them away and then dispositions them back to the cook line. for 35 thousand. – You come out ahead 5 large your first year and well over 30 every year after that. and the machine never calls in sick or puts its fingers into the till. or best of all gets a mandatory raise.

    Thanks NY. Now a lot of skilled people will be working overtime manufacturing, installing, and maintaining fully automated diminishing machinery.. For every 10 or 15 that loose their unskilled job a skilled person will be working overtime. – Way to go. Jacking up that minimum wage sure worked out well, huh? .

    Reply
    • sweetsuzee

      For starters, the automated dishwasher does not put money back into the community which financially hurts everyone. Second, think about $1/hr in this day and age. Who can live on $600/week in this day and age? Costs are just too high. It’s a vicious cycle and if it keeps up, we’re economically doomed.

      Reply
      • Mary Buckley

        If they can’t afford to live in the city they’ll have to move. The. You’ll see a great increase of people moving to suburbs and trying to get jobs there that will end up competing with them. It’s a very bad move New York. But what do we expect out of New York or California. Oh yeah lethal injections for babies and not mirderers. New York and California May someday hopefully soon slide off into the ocean and take their idiot ideas with them.

        Reply
        • Joe Gilbertson

          You are right about that. California has a huge problem with this, no one can afford to do basic services jobs in California cities because they have declined to provide the infrastructure for them to travel from less expensive places.

          Reply
    • NC Ken

      This is a phase of Cloward-Piven, crush entrepreneurship and put as many people on the dole as possible to collapse the system. Minimum wage serves no one but the insurgent well.

      Reply
    • Cancel NPR

      Absolutely awesome !!!!
      F… new york…
      You VOTED for a communist SOB… ENJOY IT, A..holes…

      Reply
  4. Craig Forester

    Why not just cut to the chase and raise it to $100 an hour. That way everyone will get fired or laid off and all the businesses will fail. Then the Socialist Dems can have you looking for your next meal out of a garbage bin.

    Reply
  5. Bob Smith

    Alice Green is hot!

    Reply
  6. Jim

    They city Decatur Illinois jump tax from.725 to 11 percent all the owners said it will kill eating places 2 weeks later went to Decatur around 6 evening checked several places would have to wait 30 to 45 minutes to get a table cry over nothing

    Reply
  7. Eric

    Stupid, dumb assed leftists!

    Reply
  8. Kent

    Move along folks nothing to see here… same schitt happens in Moscow, Bejing, Seattle, La, Havana and a host of other commie controlled cesspools.. the net effect of two commie aholes in a row pretending to guide new dork city to a more successful future.. now the idiots are sending some of the manure out to keep S chucki schoooooomster company in DC… the other commie poster bunny, occasional-cortezhole is a real loser.. to bad they could not have kept that $lut in the Bronx.

    Reply
  9. Dave

    This is one of many reasons why there is such a mass migration to the southern States like Florida. Building in Florida is just crazy. Developments springing up everywhere! Moved to Florida from Ohio 3 years ago. Glad I did. Anyone that can get out of New York State will do so, to avoid the lousy weather, high taxes, and the high cost of living, leaving less people to support and pay for these great social experiments. It will be a vicious cycle downwards! Good Luck!

    Reply
  10. DTrueview

    Sadly; people are listening toBernie Sanders and AOC thinking they are going to get a boatload of handouts, just like the employees thought more money would workout. Efficiency is the key. Want better pay? Improve yourself. Upgrade your education, your skillsets, your mindset; bearer focused, Prove yourself valuable to your bosses, and WORK, rather than just being employed.

    Reply
  11. TERRY WILSON

    WELL HERE IN CALIF THERE SHUTTING DOWN FARMS OF 720 ACRES BECAUSE OF THE MIN WAGE DEBACLE 15 $PER HR

    Reply
  12. terry wilson

    GO TO SCHOOL GET A BETTER JOB UNSKILLED SHOULD NOT BE PAYED 15 PER HR.ITS ALL ECONOMICS COMMUNIST.

    Reply

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