Restaurants Are Maybe, Finally Seeing the Benefit of Paying Workers Better Wages

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According to a new study, parts of the restaurant industry have cracked the code to hiring and retaining talent by paying more

The push for higher pay in the restaurant industry is to counter the narrative espoused by the National Restaurant Association, which argues that raising the minimum wage and eliminating the tipped minimum would be disastrous for the restaurant industry.

OFW notes minor menu increases may happen with higher wages, and that more needs to be done to support the industry so that everyone can make a living wage. But the legacy of tipped wages means yfor your meals out, as the lower prices can only exist by paying workers poverty wages.

One Fair Wage hopes this leads to more legislative action around wages. “Given this shift in the restaurant industry toward full, livable wages with tips on top, it is imperative that policy makers support both workers and employers in the restaurant industry by passing federal and state policy to raise the minimum wage to $15 an hour and end the subminimum wage for tipped workers,” said Saru Jayaraman, executive director of One Fair Wage, in a statement.

Restaurants are still struggling, and those that made it through the pandemic are operating on even thinner margins as they deal with foodand making up for over a year of intermittent sales, if there were sales at all. This survey is far from comprehensive, but rather than tanking their businesses, OFW says the restaurants they surveyed “are finding that they must transition to one fair wage in order to recruit talent, fully reopen, and survive.

 

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