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How Savvy Restaurateurs are Beating Minimum Wage Hikes

Many major cities in the United States have passed new $15.00 minimum wage laws that will drastically affect how restaurant owners are doing business. According to the Restaurant Technology Guys blog, California Restaurants and Retail Stores will be heavily impacted by the new minimum wage increases. This article will help you understand how some major cities will execute the new minimum wage increases and what you as a restaurant owner can do to reduce costs and improve productivity.

3 major cities that have raised the minimum wage

New York City has raised the minimum wage from $9.00 to $11.00 per hour for businesses with 11 or more employees. This wage increase will begin at the end of 2016. The minimum wage will be increased $2.00 an hour each year until 2018.

Seattle’s new minimum wage laws are more complex and will affect businesses on a broader scale.  The current minimum wage in Seattle is $10.50 to $11.00 an hour for businesses with 500 or less employees. The minimum wage increase will reach $15.00 an hour by 2024 for many employers. For many larger businesses the current minimum wage will be rise to $15.00 an hour within 3 years.

San Francisco’s minimum wage will be increased to $13.00 an hour on July 1st 2016. Wages will increase $1.00 an hour each year until July 1st 2018.

Many cities and states in the U.S. have passed similar minimum wage laws that will roll out this year.  The new wage increases will continue each year until the $15 an hour minimum wage increase has been fulfilled.

How Restaurant owners can beat minimum wage hikes

It’s not surprising that technology is being viewed as an ideal “sidekick” to help owners reduce operating costs.

The Restaurant Technology Guys (RTGs) which are industry thought leaders and popular webcasters have said that as a solution, technology has its hand in every dollar that comes in and goes out of the store. Technology improves the performance of your staff, it makes your processes run more efficiently, and it ensures a consistent experience over the entire brand.

But, as the RTGs point out, before a restaurant operator can layer in new technologies, it’s first essential to have the business’s people and processes in place. In simple terms, according to the RTGs, think of the business as a three-tier hierarchy:

  1. Build the restaurant’s foundation on a good hiring strategy; look for the right people; stick to the adage, ‘hire slow fire fast’
  2. Layer in your processes to align with your revenue streams and continually provide training to staff according to these processes
  3. Enable and empower your people and processes with the right technology for automation, expediency and efficiency. “Technology is an accelerant to make your people better and your process more efficient.”

Technology used to reduce operating costs

Labor Management Software
Tabletop Point of Sale
Mobile Payment Solutions
Kiosk Point of Sale System
Restaurant Inventory Software
May 20, 2016|News & Events|

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