The National Restaurant Association released the findings of a nationwide survey of restaurants large and small – asking what impact passage of the Raise the Wage Act would have on their ability to recover this year. The Association sent a letter to congressional leaders citing the survey results to urge that the measure be removed from the $1.9 trillion stimulus plan.
“Passage of this bill this year would lead to job losses and higher use of labor-reducing equipment and technology,” said Sean Kennedy, executive vice president for Public Affairs for the National Restaurant Association. “Nearly all restaurant operators say they will increase menu prices. But what is clear is that raising prices for consumers will not be enough for restaurants to absorb higher labor costs.”
Highlights of the survey findings in the letter include:
The Raise the Wage Act would increase the federal minimum wage to $15 an hour, more than double the current $7.25 an hour, over five years. It also eliminates a separate minimum wage for tipped workers. Most tipped servers make between $19-$25 per hour under the current tipped credit system.
To assess the potential impact of a proposed increase in the federal minimum wage, the National Restaurant Association conducted a survey of 2,000 restaurant operators February 2-9, 2021.