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New York City restaurants are eliminating jobs, reducing employee hours and raising prices due to the higher costs of the $15-per-hour minimum wage.
A once-growing industry is contracting, according to an online survey conducted by the New York City Hospitality Alliance, an association representing restaurants in the city.
Last year, “full-service restaurants recorded a 1.6 percent job loss, which is the first recorded annual loss in two decades,” said Andrew Rigie, executive director of the trade group.
The survey also said about a third of respondents will eliminate jobs and most will raise prices this year because of the new $15-an-hour law backed by Gov. Andrew Cuomo and other state officials, which took effect on Dec. 31, 2018.
https://nypost.com/2019/03/30/the-new-minimum-wage-is-killing-nycs-once-thriving-restaurant-scene/ [nypost.com]
Big Apple restaurants are feeling the heat from minimum wage hikes, cutting staff hours and even closing kitchens as they struggle to shoulder the extra payroll costs.
Gabriela’s Restaurant and Tequila Bar, a margarita and taco staple on the Upper West Side for the past 25 years, is closing at the end of September — and it has been a long, painful road downhill, according to its mom-and-pop owners.
Since the $15-an-hour minimum wage hit New York City in December, Liz and Nat Milner say, they’ve been forced to slash their full- and part-time staff to 45 people from 60. Quality has suffered, they admit, and customers have noticed: They’re not coming in like they used to, and when they do, they’re spending less.
“We started by having to let go of the ladies who hand-made our tortillas. It’s certainly better when you can make your tortillas fresh for every taco,” Nat Milner said. “It made sense at $8 an hour but not at $15.”
https://nypost.com/2019/09/29/15-minimum-wage-hike-is-hitting-hurting-nyc-restaurants/ [nypost.com]