In 2017, rising minimum wages will continue to be a main economic driver affecting the restaurant industry across the United States. In this MRM News segment, Modern Restaurant Management magazine speaks with restaurateur Willie Degel to capture his take on the issue.
The CEO for the New York-based Uncle Jack’s Steakhouse chain noted minimum wage increases cost his business $350,000 and forced him to cut the bus boys he used to employ for every five tables at his upscale eateries. Still, taking that action only offset 30 percent of the extra costs.
Degel maintains there should be three different minimum wages to keep small businesses afloat and big businesses honest: one for publicly traded companies, one for private companies earning over $50 million, and one for private companies earning less than $50 million.