15.00 an HR= between 100-120 a day per employee. now thats a lot for any small/medium size restaurant. and then u multiply it by 15 to 20 employees. then you throw in the cost of food/electricity. No wonder most restaurants fail. Every restaurant has their quota that they have to meet every month. if they don't, they shut down. just like they are in Washington.
Congratulations, you've just demonstrated how little you know.
Mistake #1: The majority of restaurant employees are "tipped" employees.
Seattle's minimum wage ordinance says that the restaurant can "meet the applicable hourly minimum compensation requirement through wages (including applicable commissions, piece-rate, and bonuses), tips and money paid by an employer towards an individual employee's medical benefits plan." So the majority of employees will not see their actual wage increase.
Mistake #2: The typical restaurant shift is 6 hours long.
Your calculations presume a 7-8 day, which is does not reflect reality.
Mistake #3: Restaurants fail for many reasons, but labor costs aren't one of them.
It's true that nearly 90% of restaurants fail in their first year. There are alot of things that seem to contribute to that. But it's rare that a restaurant fails because of labor costs. When it does happen, it's usually associated with overpaying chefs and other kitchen figures. The most common reasons restaurants fail are:
1. Poor leadership/management
2. Poor location
3. Poor marketing
4. Poor service
5. Poor food