Minimum Wages Increasing

Updated: Mar 16, 2019

Whether you have a Virtual Restaurant or brick and mortar, or both, rising minimum wages impact profitability.

Minimum Wage Raise Challenges Restaurants

While consumers appreciate the convenience of delivery, for restaurant operators a major reason to offer delivery or open a Virtual Restaurant is to offset the rising labor costs, and provide another revenue and profit source.

While individual states have set their own minimum wages, as seen in the map above, Congress is debating a federal minimum wage of $15 an hour. Despite the opposition of many groups the bill will be coming up for a vote in the House of Representatives in the next few weeks, where it is expected to pass.

The Raise the Wage Act, H.R. 582, would raise the lowest legal federal wage from the current $7.25 an hour to $15 over a five-year, staged process. It would also require all restaurants nationwide to pay servers the full minimum wage while also allowing them to keep any tips they collect.

However, a recent study from the Employment Policies Institute (EPI), a nonprofit policy and research group, claimed 74% of the 197 economists surveyed by them opposed a $15-an-hour minimum wage, with a majority saying federal minimum wage should remain below $10 an hour.

The bill is expected to be blocked in the Republican controlled Senate. Check back for updates to this story.

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