Wednesday, June 24, 2009

With minimum wage increases, restaurants will have to streamline their processes


Now that the minimum wage is going up July 24, restaurants managers and owners will have to deal with the increase in their labor costs.
The 11-percent increase for minimum wage will probably mean a combination of price increases or workforce consolidation.
As a restaurant consultant, I believe that businesses should not drop costs for training or customer service. Instead, they should realize that their customers will expect that their staff will want a well-trained staff at their establishment and will be willing to absorb the 11-percent increase in their food for great service.
With a month to go, there's time for restaurant owners to look at their costs, especially from their food vendors. By asking a vendor for the best rates, they can offset the additional cost for labor.
Restaurant managers who look at these costs and begin a strategic review of their labor costs can ensure that the change in minimum wages won't truly impact their bottom line.

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