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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