Photo: Victor J. Blue / Bloomberg
Minimum Wage Increase Effects on the Restaurant Industry
At a time when minimum wage in the United States varied from $5.15 in Wyoming, to $9.15 in Connecticut, and with the Federal wage set at $7.25, New York made history when they raised their minimum wage to $15.00 (source: NCSL). While the plan will phase in over three years in New York City, and over six years in the rest of the state, the reaction was quick. While many in the media hailed the decision as being something that’s been needed for years, there were just as many naysayers. They claimed that raising the minimum wage would stunt the economy, as restaurants, especially locally owned ones, would struggle to meet payroll once the new minimum wage rates began.