Next to the 2016 presidential debate, few things are as polarizing as the topic of a $15 minimum wage. Indeed, the D.C. Council unanimously agreed to boost the city’s hourly minimum wage to $15, joining the ranks of California and New York who recently agreed to implement a $15 minimum wage by 2022. Supporters of the measure argue that the minimum will reduce the growing income gap, whereas critics insist that the increase in wage floor may prompt businesses to lay off workers, reduce hours, or even swap out employees for kiosks, as seen in Wendy’s restaurants.
It’s difficult to have a thoughtful discussion about minimum wage. Indeed, for every voice that echoes that of Mary Key Henry, president of Service Employees International Union, arguing that demand for more pay is an ethical issue, not a legal one, there is a counter from those like National Restaurant Association senior vice president Alfonso Amador, who says, “There seems to be a perception that every job needs to be able to maintain a family of four. Not every job is there to sustain a family of four.” (It’s also good to note that the National Restaurant Association officially announced last December their action to take the New York’s minimum wage law to court—this issue is a long way from being resolved.) And in a recent study, the White House is arguing that raising the minimum wage reduces crime by 3 to 5 percent….opening up just another barrel of worms in an already passionate and controversial topic.
No matter what side of the equation you’re on, higher minimum wages will come—how rapidly though, is still on the table. As a restaurateur, your profit margins may not be high, but you need to be prepared for higher labor costs. Not everyone can raise menu prices to offset these costs, so what can you do instead?
Try reducing your food cost
An easy way to run your business more efficiently is to reduce the amount of food waste in your restaurant. Start by following these simple tips:
- Source reduction – order what you need!
- Inventory your food – day labels are great for knowing when it comes in and when it should go!
- Use scales – stop fudging those recipes and make sure you’re not adding too much to the dish
- Scrape the bowl clean – tools like dough scrapers help get every last ounce
- Filter and reuse your cooking oil – you’ll want to use some filter paper. Our own Chris Tavano even shows you how to do it:
Over the course of time, labor costs will increase—just like the cost of living increases as well. Running your business more efficiently will help you in the long run, so you’ll be prepared for whatever legislation may come down the pipeline.