Seattle’s $15 Min. Wage Is Making Something Happen That City Leaders Never Expected…But Should Have

17 Mar, 2015 by John Brodgian

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Conservatives says a minimum wage hike will put customers out of business.  Liberals say, “you’re a lying liar who lies Koch Brothers Fox News Sarah Palin.”  Liberals raise the minimum wage in Seattle to $15 and hour and you won’t believe what happens next!  Actually, you will…

The magazine went on to report that one “major factor affecting restaurant futures in our city is the impending minimum wage hike.” Anthony Anton, president and CEO of Washington Restaurant Association, told the magazine, “It’s not a political problem; it’s a math problem.” He estimates that restaurants usually have a budget breakdown of about 36 percent for labor, 30 percent for food costs, and 30 percent to cover other operational costs. That leaves 4 percent for a profit margin. When labor costs shoot up to say 42 percent, something has to give.

Restaurants can take actions to adjust, such as raise their prices, acquire cheaper ingredients, and cut their operating hours and labor force. However, all those actions generate reactions from the public which can still lead to lower revenues for the restaurant and, for some, the decision to close their doors.

As the April 1st deadline approaches, liberals have a front row seat to see the effect on of their key policy prescriptions actually has.  Most likely, they won’t blame themselves.