Minimum Wages Hurt Small Businesses

[From article]
“If the restaurant suddenly has to pay for something it didn’t have to pay before, one way to cover that cost is to raise menu prices,” Kevin Connelly says. “So we are probably going to have to pay more for that shrimp.”
And that, says Eve Connelly, will have a ripple effect. Higher prices mean people go out less often, which means less in tips for the wait staff at Leonardo’s II. “I wonder if this is something the politicians understand,” she says.
[. . .]

"What I keep trying to drive home is that we are forced into paying costs we never had to cover before in addition to the minimum wage increase that is already in motion,” he says. “This will cripple the restaurant industry. This is especially true for start-ups and other borderline businesses operating at the margins.”
[. . .]

“This is an easy issue to demagogue,” he says. “If this bill does go through it will mean higher consumer costs and less business in restaurants, which works to the disadvantage of the very workers the politicians say they are trying to help.”

http://dailysignal.com/2014/10/01/new-jersey-minimum-wage-proposals/

Mom-and-Pop Restaurants Feel Pinch of Minimum Wage Hike



Kevin Mooney / @KevinMooneyDC / October 01, 2014 /