Home Economy The First Casualty Of California’s $15 Minimum Wage Is The Restaurant Industry

The First Casualty Of California’s $15 Minimum Wage Is The Restaurant Industry

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Restaurants are on the decline in coastal areas of California which have adapted the $15 minimum wage, many closing down altogether.

Guinea pig cities in California testing out the $15 minimum wage increase before the rest of the state have reacted negatively to the change, and that’s pretty bad considering that these areas are far more affluent than their inland neighbors.

Restaurants cannot keep up with the high minimum wage. California is just a mess.

From The Federalist Papers:

San Francisco, an early adopter of the $15 wage. It’s now experiencing a restaurant die-off, minting jobless hash-slingers, cashiers, busboys, scullery engineers and line cooks as they get pink-slipped in increasing numbers. And the wage there hasn’t yet hit $15.

As the East Bay Times reported in January, at least 60 restaurants around the Bay Area had closed since September alone.

A recent study by Michael Luca at Harvard Business School and Dara Lee Luca at Mathematica Policy Research found that every $1 hike in the minimum wage brings a 14 percent increase in the likelihood of a 3.5-star restaurant on Yelp! closing.

Another telltale is San Diego, where voters approved increasing the city’s minimum wage to $11.50 per hour from $10.50, this after the minimum wage was increased from $8 an hour in 2015 – meaning hourly costs have risen 43 percent in two years.

Run by democrats, elected by democrats, economy destroyed by democrats. No surprise here… I firmly refuse believe that any Burger flipper is worth the same wage as a first responder or our servicemen risking their lives overseas. The thought is just ridiculous!

Skilled professionals with years of experience, who have hard jobs, mentally and/or physically deserve higher wages. How do you do less than nothing and get paid a good wage? This is entitlement at it’s best…

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