The National Restaurant Association recently completed a national survey of its membership, asking independents and franchises what impact the Raise the Wage Actwould have on their recovery efforts and plans for 2021. The Raise the Wage Act is currently being considered for inclusion in the next stimulus bill. "Tipped servers will lose with the end of a system that allows them to make $19-$25 an hour in tips under the current tip credit system."
From the National Restaurant Association:
The results are striking and Congress needs to hear that now is not the time to attach this to the stimulus bill being considered right now.
Restaurant owners tell us that if “Raise the Wage” passes Congress later this month:
82% say it will have a negative impact on their ability to recover this year. 98% will have to raise menu prices. 84% will likely cut jobs and employee hours from normal levels. 65% will add equipment or technology that reduces the need for employees in their restaurant.
These results make one point crystal clear – after seeing over 110,000 restaurants close and over 2.5 million jobs lost, increasing labor costs is going to make it more likely that more operators close their doors and lay off their staff. Tipped servers will lose with the end of a system that allows them to make $19-$25 an hour in tips under the current tip credit system.
Infographic with the survey findings is here.
Congress is looking to fast-track this bill in a matter of weeks. They need to hear from you to put a local connection to these national results. You can take action in the survey here. Your answers to the questions asked will personalize your message to Congress.
Source: National Restaurant Association