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Old 06-19-2017, 10:48 AM #1
Bygeorge Bygeorge is online now
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Default Restaurants in Cali are shutting down due to $15 minimum wage

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.

Fresnobee reports:

“[…] 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.

The business decline in these areas means bad news for the rest of the state, where things will likely be far worse if California enacts a state-wide minimum wage increase.

If we can expect similar results to what we’ve seen so far where the $15 minimum wage increase has gone into effect in the state, restaurants who remain in business will likely cut staff to skeleton crews and those already struggling will have to close.

Fresnobee continues:

“U.S. Census Bureau data show about 21 percent of workers in Bakersfield earned from $8 to $12 per hour in 2015, the most recent year for which data was available. In Fresno, 32 percent of workers were in that wage group, and in Modesto about 25 percent. Contrast that with Santa Clara County, home of Silicon Valley, which registered only 12.5 percent at that level.

The state’s diverse unemployment rates tell a similar tale. Unemployment in Bakersfield was 9.5 percent; 8.8 percent in Fresno, and Stanislaus County notched 7.9 percent. Compare that to Silicon Valley’s unemployment rate – 3.2 percent

“Part of our whole concern with (the $15 wage) is it’s a one-size-fits-all,” Rob Lapsley, president of the California Business Roundtable, told The Sacramento Bee last year. “Areas with double-digit unemployment, this is scaring them to death.”

It’s no wonder either. Perhaps wealthier cities can spare a drop in business, but many places can’t afford the loss.

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Old 06-19-2017, 11:09 AM #2
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This reminds me of an article I saw after the Seattle wage hike. It turns out in that case that the article I was reading was overly simplified - they had not considered that restaurants closed all the time and that the number that had closed in the span they analyzed was not unusual. They also had not considered how many new restaurants opened, or how many of the ones that closed simply moved to another location.

That may not be the case here though, as it would not be shocking if a sudden surge in wages put a strain on some businesses. I would need a more detailed article to make much of this.

Last edited by BrometheusBob.; 06-19-2017 at 11:12 AM.
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Old 06-19-2017, 11:10 AM #3
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Maybe there are too many f#cking restaurants.

I'm constantly amazed at all the restaurants in my neighborhood that are around that I barely see people go into. If there is some gangsta sh^t going on at more then one of them I wouldn't be the least bit surprised cuz they gotta be doing something illegal in there or paying illegal mfers $3/hr to work there & still be open somehow.
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Old 06-19-2017, 11:13 AM #4
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Idiots think that if they raise minimum wage, that nothing else will proportionately increase.
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Old 06-19-2017, 11:19 AM #5
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Originally Posted by JimRaynor View Post
Idiots think that if they raise minimum wage, that nothing else will proportionately increase.
Gruber didnt call them "stupid" for nothing.
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Old 06-19-2017, 11:32 AM #6
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I bet California will raise the minimum wage to $15 across the entire state anyways.
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Old 06-19-2017, 12:09 PM #7
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Idk if those statistics are correct ot not but in Dallas where there are more restaurants than nearly any other city restaurants open and close very frequently.
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Old 06-19-2017, 12:23 PM #8
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Originally Posted by Mooshashi View Post
Idk if those statistics are correct ot not but in Dallas where there are more restaurants than nearly any other city restaurants open and close very frequently.
Basically what I was pointing out in my post
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I'm not saying the OP's message is definitely wrong, just that the number of restaurants that closed after the wage increase is not meaningful devoid of other context

Last edited by BrometheusBob.; 06-19-2017 at 01:12 PM.
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Old 06-19-2017, 12:35 PM #9
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Originally Posted by 1bad65 View Post
Gruber didnt call them "stupid" for nothing.
The jackasses wanted this implemented nationwide via federal law, without taking into consideration that the cost of living varies wildly from state to state. But who cares, let the libs run their states how they see fit, it's when they believe that every state in the union should be run like theirs that you have pissed off people.
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Old 06-19-2017, 12:54 PM #10
1bad65 1bad65 is offline
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Originally Posted by Bygeorge View Post
The jackasses wanted this implemented nationwide via federal law, without taking into consideration that the cost of living varies wildly from state to state. But who cares, let the libs run their states how they see fit, it's when they believe that every state in the union should be run like theirs that you have pissed off people.
Exactly.

The Founders put in the 10th Amendment for reasons like this.
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