San Francisco and Oakland raised the minimum wage to $13 last year. The minimum wage will be subsequently raised to $14 in July and $15 next year. This undoubtedly made many leftists in the Bay Area happy. But not so much restaurants.
According to SF Eater, 64 Bay Area restaurants close their doors in the winter of 2016 and 2017.
All sorts of restaurants closed and all over the two cities.
This isn’t necessarily surprising. If one understood basic economics then you would understand these businesses would have no other choice but to stop hiring workers, slash their hours or shut down altogether.
Of course, the Fight for 15 thinks it is something more sinister on the part of the owners, reports The Daily Wire.
“We’re robbed on the job by our employers looking to cut corners. And it’s not like our employers are struggling — these are multi-billion dollar corporations.”
It isn’t just restaurants that are being negatively impact. It is pretty much every single small business.
Cry me a river. I made $9.10 per hour loading trucks for Gallo Wine corp in 1974. It was a union shop, but they managed to pay it and make a profit. I am sure the 64 restaurants would of closed anyway, regardless of the wage increase. Sometimes there are just to many restaurants in a given area.