And Kaboom!!!!!! The myth gets busted:
Sorry Righties, Seattle Restaurant Closures Are NOT Due To $15 Minimum Wage
'Right-wing sites want everyone to believe that, come April 1, the minimum wage in Seattle will jump from the current level to $15 an hour. That’s not what’s happening at all. The new minimum wage will be phased in over several years. How quickly a business reaches the $15 an hour level depends on the size of the business, and whether or not the business offers employees health care benefits, as explained on Seattle mayor Ed Murray’s web page.
The current minimum wage in Washington state is $9.32 an hour. That wage goes to $11 an hour on April 1 for businesses with more than 500 employees.
For businesses such as restaurants, with fewer than 500 employees, who receive “minimum compensation,” that wage can be made up of a combination of wages, tips, and employer contributions to an employee health care plan, as long as the total of all the compensation equals at least $11 an hour.
The full $15 an hour minimum wage does not take effect for restaurants until 2019.'
...
'The right-wing sites mentioned above all latched onto a story in Seattle Magazine, that says that the impending wage increase is one of the reasons for the restaurant closures. However, Sara Jones, author of the story, acknowledges that not a single restaurateur she spoke to gave the wage increase as a reason for his or her restaurant being closed.'
'It is true that Seattle is seeing a large number of restaurants closing their doors. So, what exactly is going on, if it’s not the new minimum wage? It’s a variety of things. According to Seattle Magazine, Anthony Anton, the head of the Washington Restaurant Association, says that each year, about 17 percent of Washington restaurants go out of business, or change owners. That amounts to about 400 restaurants “in a good year,” he says.'
http://www.ifyouonlynews.com/politics/sorry-righties-seattle-restaurant-closures-are-not-due-to-15-minimum-wage/
Okay RWnuts, proceed to deny the facts.
Not a single one of you right wing **** heads want to touch this article now do ya?
Nice job of shutting them up NY.
A.) HOW many did she speak to? 3...? 10.... 400 restaurants that are going out of business?
B) The realities of running a business EVEN with it being phased IN by 2019... THE owner's share will BE DECREASING!
So rather then see their net profit continue to fall... THEY ARE QUITTING!
Here are the facts on running a restaurant:
“He estimates that a common budget breakdown among sustaining Seattle restaurants so far has been the following:
36 percent of funds are devoted to labor,
30 percent to food costs and 30 percent go to everything else (all other operational costs).
The remaining 4 percent has been the profit margin, and as a result, in a $700,000 restaurant,
he estimates that the average restauranteur in Seattle has been making $28,000 a year.
More Seattle restaurants close doors as 15 minimum wage approaches AgainstCronyCapitalism.org
“With the minimum wage spike, however, he says that if restaurant owners made no changes, the labor cost in quick service restaurants would rise to 42 percent and in full service restaurants to 47 percent.”
Restaurant owners, expecting to operate on thinner margins, have tried to adapt in several ways including “
higher menu prices, cheaper, lower-quality ingredients, reduced opening times, and cutting work hours and firing workers,” according to
The Seattle Times and
Seattle Eater magazine. As the
Washington Policy Center points out, when these strategies are not enough, businesses close, “workers lose their jobs and the neighborhood loses a prized amenity.”
But see you LIPs/anti-business idiots don't have an IDEA what the above percentages mean do you?
So 36% is used for labor... IF the minimum wage increases from $7.25 to $15/hour that is a 50% increase...
Labor increase then 50% means 36% goes to 54%... that is from $252,000 for labor costs to $378,000 and increase of $126,000.
If all other costs stay the same....that means the $28,000 the owner made before minimum wage is now a $100,000 LOSS!
The owner can't stay in business with a loss!