The Minimum Wage Eats Restaurants

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The Minimum Wage Eats Restaurants

By Michael Saltsman

San Francisco’s ever-rising minimum wage—set to hitting $15 adjacent year—has eatery owners bespeak for the check. “At Least sixty Bay Area Restaurants Have Closed Since September,” read a Jan headline at the website SFist, which partly blamed “the peculiarly high toll of doing trouble organisation inwards SF, amongst a mandated, ascent minimum wage that does non exempt tipped employees.” Another publication, Eater, described the rash of recent closures equally a “death march.”

Perhaps the highest-profile closure inwards San Francisco this twelvemonth was AQ, which inwards 2012 was a James Beard Award finalist for the best novel eatery inwards America. Rising costs chipped away at the restaurant’s profitability, according to a written report past times Thrillist, driving downward the lucre margin from 8.5% inwards 2012 to 1.5% past times 2015.

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