This document discusses the potential costs to restaurants of increasing the minimum wage from $5.50 to $7.50 per hour. It estimates that for a restaurant using 200 server hours per week, this increase could cost $1600-$2000 per month in additional wages and payroll taxes. If wages increase by $0.25 more per hour, costs would rise by another $200 per month. Overall, restaurants could see their monthly labor costs increase by $3000 to $6000. To offset these costs, restaurants would likely need to raise menu prices. However, this could reduce customer traffic. The increases could also lead vendors and other businesses to raise their own prices, fueling inflation.

1. Average restaurants use about 200
serverhoursinaweekspayroll.Wages
increasingfrom $5.50to$7.50perHr.
will cost restaurants a whopping
$1600.00 per month; add in payroll
taxes&insuranceincreasescostscould
reach$2000.00permonth.Withregular
wageswages increasing .25 perhr.add an
additional $200.00 monthly. Restau-
rantsinrealitycouldspend3,000-6,000
monthly in new laborcosts.The first
thingrestaurantswillturntoisraising
menu prices,exactly whattheircus-
tomerswillbe looking for!Thiscould
prove costly in decreasing clientele.
People willbe paying more at the
register where ever they go, Super
Stores, GroceryMarkets,gasstations
and more .Corporations willalso be
paying more in increased laborcosts,
big corporations willnot hesitate to
increaseincreasetheirpricing.Thefirstthingthe
consumercutsfrom theirbudgetisany
form ofentertainment!
TheCostofMinimum Increase
HELPINGYOUACHIEVEYOURGOALSIN2016
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PriceCheckReport
Vendorscanneverraiseyourpricesagainwithyourknowledge.
Althoughsomecompaniesmayhave
large enough profitmargins to not
raiseprices,mostbusinesseswillnot
be able to afford increasing the
minimum wage withoutraising the
pricesofproductsorservices.Costs
ofgoodswillmostsurelyhavetorise
ininordertopayemployeesoralterna-
tively companieswho can notraise
their prices willhave to resort to
layoffs orgo outofbusiness alto-
gether.Ifpricesriseinordertohelp
payforincreasedWages,wewillsee
inflation.Vendorswillincreasecostof
goodsbyand estimated 10-20% In
2016increasesofupto15-25% will
come acrossthe board in operating
expenses.
Ifyoufocusonresultsyouwillneverchange
Ifyoufocusonchangeyouwillgetresults
Itstimetochangetogettheresults
Youdeserve!!
Corporations such as Mc
Donald's,BurgerKingandother
fastfood chains have to raise
theiremployeewagesto$15.00
per hour. This willcause an
increase ofup to 38% in the
priceoftheirmenu’s,Increasing
aa Big MacMealfrom $5.69 to
$7.82andaWhoppermealfrom
$6.15to$8.46ASubwayTurkey
Footlongfrom $6.50to$8.94as
written by Steve Straub Paper
Project.
Dashboard
Employees
Vendors
Inventory
-View/EditInventory
-EndingInventory
-Low Stock-Low StockRe/Order
-PendingOrders
Finances
-AccountsPayable
-Labor
-NetSales
Reports
-Labor-Labor
-Sales
-PurchasingReport
-VendorReport
-SalesvsLabor
-OperatingReport
-Profit&LossReport
Iftheindependent
restaurateurscankeep
from raisingprices,this
somewhatlevelsthe
playingfield
BusinessImplicationsTheBrightSide
RestaurantNews January2016Edition