New York City's Minimum Salary Raise Restaurants Shorten Hours - ForumDaily
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Because of the increase in the minimum wage in New York restaurants reduce working hours

The legal minimum wage for New York employers with 11 and more employees increased from December 31 2018 from 13 to 15 dollars per hour, which will lead to an increase in wages for employees of fast food, retail and other industries.

Фото: Depositphotos

But some owners of New York restaurants say that this increase in the minimum wage forces them to cut working hours for employees to keep the business afloat, writes CBS News.

This is the third increase in the minimum wage in the city. The increase process began on December 31 2016, when salaries rose to 11 dollars per hour. The latter increase is part of a plan that provides for a phased increase in the minimum wage across New York State, with amounts and dates for entry into force varying by region and industry.

John Blustein manages six restaurants in New York, each of which runs from 50 to 110 people. The owner of Heartland Brewery and Houston Hall admitted that raising the minimum wage led to "huge costs" for his business, so to stay afloat, Blustein decided to reduce working hours for the staff of these restaurants.

The restaurateur said that he reduced the working time of employees and no longer uses hostess services during lunch on days when there are few customers. Instead, customers are greeted with the inscription: "Please choose a table." He also shifted the start time of employees.

Bluestein said he also raised prices on the menu.

«Таким образом, в результате повышения минимальной заработной платы обедать в ресторане будет дороже. Это не очень хорошо для рабочей силы, это не очень хорошо для людей, которые инвестируют или владеют ресторанами, и это не очень хорошо для посетителей», — сказал он.

A survey by 574 restaurants, conducted by the New York Hotel Union, revealed that 75% of full-service restaurants reported plans to cut working hours this year due to the latest increase in the minimum wage. 47% stated that in the 2019 year they eliminate some jobs. 87% of respondents also noted that they will increase prices on the menu this year.

These cost-cutting measures coincide with a report by the US Department of Labor last Friday that said full-service restaurants in December raised prices the most since 2011, in order to cover rising labor and food costs.

But reducing working hours and reducing jobs limits the ability of restaurateurs to offer employees opportunities for growth and development. It also reduces the quality and speed of service.

Suzanne Kotin, who opened Lido Restaurant in Harlem in 2011, said that she had already started to combine work tasks in order to reduce staff working hours.

Some businesses find other ways to cut costs while retaining their staff.

Mark Sherry, co-owner of the Old Homestead steak house in Manhattan, said he never thought about reducing staff in response to a rise in the minimum wage.

«Увеличение минимальной заработной платы действует, но в нашем бизнес-плане никогда не было увольнения персонала, потому что, если мы увольняем персонал, мы не сможем сохранить качество, которое мы предлагали в последние 150 лет”, — сказал он, отметив, что увольнения могут стоит бизнесу дороже, чем повышение зарплаты для сотрудников.

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