Uh, if you read the article, you'll find out that new minimum wage does have something to do with it. Have you read any of the zillion studies that document the harmful effects of an excessive minimum wage?
The article has nobody in it saying they have shut down due to the MW and small businesses in NYC have a lower MW than larger employers. There are businesses like Dunkin Doughnuts and cell phone companies that are expanding in NYC. It is a matter of what you provide. Restaurants have a short shelf-life in the Age of the Foodie so their numbers have been going down in NYC for years. Major retailers have been pulling out or downsizing to showroom only stores because sales have moved online.
Small Businesses Struggle With $15 Minimum Wage Hike in NY: 'They're Shutting Down'
EXCERPT: According to a report published Monday by the
Wall Street Journal, many business leaders and owners in the Big Apple have said that they are having to cut hours, raise prices, and reduce staff in their businesses due to the rising labor costs that they say come from the recent city law bumping up the minimum wage. . . .
The president of the Queens Chamber of Commerce, Thomas Grech, told the Wall Street Journal that he has seen an increased number of small businesses closing in the last six to nine months. He believes the rising closures are due to the minimum wage legislation.
“They’re cutting their staff. They’re cutting their hours. They’re shutting down,” Grech said. “It’s not just the rent.”
Jesus dude...your own article refutes your bullshit.'
The only two businesses cited admit they have not even had to cut anyone and that all their employees are doing 40 hour weeks
Jesus what a lame thread
Ok, let's read it together......
Susannah Koteen, owner of Lido Restaurant in Harlem, said she worries about the impact raising wages could have on her restaurant, where she employs nearly 40 people. She hasn’t had to lay off anyone, but the increase has forced her to cut back on shifts and be more stringent about overtime. She said she changes her menu offerings seasonally and raises prices more often since the wage boost.
“What it really forces you to do is make sure that nobody works more than 40 hours,” Ms. Koteen said. “You can only cut back so many people before the service starts to suffer.”
Ms. Koteen said she shelved plans to move her restaurant to a larger location. That would require her to hire more staff, and she isn’t willing to take the risk with the unpredictability of her business. “You would just have no choice but to cut people at the bottom,” she said.
Thomas Grech, president of the Queens Chamber of Commerce, said he has seen an uptick in small-business closures during the past six to nine months, and he attributed it to the minimum-wage legislation.
“They’re cutting their staff. They’re cutting their hours. They’re shutting down,” he said. “It’s not just the rent.”
So this mirrors my personal experience back in the 90s, when they raised the minimum wage. We had 3 part-time employees, and the first thing they did was lay off all 3 of them. When this business owner says she would have no choice but to cut people at the bottom, I wager that is what she means.
In order for the restaurant to continue operating without those 3 people, the rest of us were simply required to do more work.
Also I find it odd that you would even say "none of the businesses they talked to had to close"...if they were closed, how would they talk to them?
You think the reporters are going to show up at an empty strip mall, start hunting down all the former business owners, and track them down?
If only there was a group of people that monitored businesses in the area, that business owners could talk to, and give feed back on how their business was operating, and what problems businesses faced. You know like some sort of group of local business people, that could relay what is going on in the community in response to government policy....... Lets see, what could we do...
What if we created something called a "Chamber of Commerce".... we could even give it a local name like "Queens Chamber of Commerce" which would relay the problems happening in the area businesses.