re: NY restaurants raising prices to cover minimum wage increase

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In 2013 it was $7.25, then increased to:

12-31-2013 - $8.00
12-31-2014 - $8.75
12-31-2015 - $9.00
12-31-2016 - $11.00 ($10.50 if 10 or fewer employees)
12-31-2017 - $13.00 ($12.00 if 10 or fewer employees)
12-31-2018 - $15.00 ($13.00 if 10 or fewer employees)
12-31-2019 - $15.00 for all NYC employers

So they basically raised the minimum wage by 67% over 3 years and thought small businesses with 10-20 employees were just going to be able to absorb that kind of increased payroll cost without charging more

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That is the kind of facts I was looking for.

Our local min wage just increased from $8 to $9 an hour and yes I fully expect that most businesses will simply have to eat that extra cost, because if they raise prices customers will bitch. And for the most part the have.


Because you know , $1-1.50 raise over 3 years or whatever isn't a big deal and can be absorbed. After all, do companies raise prices every time they give an employee a raise? Of course not.

And just like Seattle, some of these places will close and then no one will have a job.

Didn’t the bar AOC worked at close for this reason?

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Because you know , $1-1.50 raise over 3 years or whatever isn't a big deal and can be absorbed.

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Based off what?

you're assuming the cost on everything else to run a business remains the same or decreases in cost or businesses have a 150% price margin that they can simple just absorb $10k,20k, or more per year in salary.

Min wage moving from $8 to $15 will increase over $70k for payroll for most businesses of 5 employees or more, per year. That's just 1 variable in the cost to run a business. This is what dimwits that don't understand business, never ran a business like Bernie,AOC don't realize. You have no other choice but to raise prices, lay off staff or shut down.

They always talk about Starbucks, Walmart but never mention the local mom/pops businesses that get caught up in it, who will have to layoff and raise prices.

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raising prices to adjust for the higher salaries they must pay workers

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The increase is over all industries, so prices for goods and services across the board will increase, thus the poor who are getting minimum wage still can't afford goods and services.

Should do wonders for the tourism industry

/s

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12-31-2019 - $15.00 for all NYC employers

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I’m guessing this also includes servers and bartenders in the city, so there is no longer any need to tip these folks.

Let's just go back to slavery so us middle class folks can eat out for real cheap!

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Min wage moving from $8 to $15 will increase over $70k for payroll for most businesses of 5 employees or more, per year. That's just 1 variable in the cost to run a business. This is what dimwits that don't understand business, never ran a business like Bernie,AOC don't realize. You have no other choice but to raise prices, lay off staff or shut down.

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This

As a physician, payroll/labor is my largest expense. And unlike a restaurant, I cannot just raise my prices. So I have two options, close shop and work for a hospital who can absorb those costs due to downstream revenue that a physician produces but has an increasingly more difficult time profiting from in private and group practice. Or I can stop taking insurance (which in some locations and for some specialties is not an option).

With those two options, one of two things happen. Care becomes more expensive as more people are driven to hospital based practices where facility fees are higher and charges and reimbursements from insurance companies are also higher. Care becomes harder to get as more and more physicians no longer accept your insurance. Increasing the minimum wage will make healthcare even more expensive than it already is. But nobody ever talks about that, only that their food is more expensive and restaurants are closing down...

Wait until these folks making $15 per hour realize they have to pay more in taxes and/or get their hours cut. Short sighted raises.

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That can't be right. It implies that Starbucks pays less than $15/hr in NY. SB pays $15 here in Bossier.
Now, they do keep raising prices but not for wages. They give medical benefits and online college tuition (which Schultz calls 'free college for everyone.')

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And they leave that tip cup out, which is obnoxious. Starbucks baristas are the poorest example of labor affecting price.