SARASOTA COUNTY (WSNN) – Despite voter approval, the minimum wage increase remains a hot topic here in the sunshine state. SNN talks to Suncoast restaurant owners dealing with Amendment two.
“It’s going to hurt a lot of businesses in the restaurant industry and not just the Restaurant industry, but people who are dependent on those lower dollar-rate minimum wage support staff,” Cask & Ale Restaurant general manager, Eoin Farrell said.
On Friday, the minimum went from $8.46 to $8.65 an hour. Come September, it rises to ten-dollars an hour. Each year thereafter, add another dollar until we’re at 15-dollars by 2026.
“I don’t know a lot of restaurants that can justify as the years go on paying, whether it be bussers, busboys, bar-backs, hostesses 15-dollars an hour for those positions,” Farrell said. “Those positions, I feel won’t be there.”
Farrell says it is going to have a domino effect on the economy.
“Higher wages, labor costs, and you’re going to see increases in drinks and food, which is going to hurt the consumer,” Farrell said.
Sarasota restaurateur Paul Mattison doesn’t expect much of an impact at his establishments—with a strong caveat on how he views the real impact of Amendment two.
“In the course of the next five years, fair wage going to 15 dollars an hour isn’t that uncommon,” Mattison said. “But, it’s the tip tax credit that doesn’t increase with the wage that is really going to hurt the restaurant business.”
Mattison predicts restaurants may switch to service charges, essentially ending tipping. He believes the customer is the loser in this scenario.
“Our industry in general over the years has been built on people striving to give excellent service and being rewarded for it,” Mattison said. “And I fear that that’ll go away and it’ll change the way that part of the industry works.”
What kind of change? Mattison explains his recent experience at an airport restaurant.
“You went and you sat down and there was an iPad bolted to the table and you were your own server,” Mattison said. “You ordered your own food; you swiped your credit card, you paid for it, someone dropped the food in the kitchen, dropped it in front of you, and walked away.”
Mattison is not a fan.
“I think that takes all the personality and all the appeal; all the good feeling out of dining out,” Mattison said.
So, in looking at Amendment two, we should look at the higher minimum wages. And, the potential long-term impact on industries like hospitality.
According to politico.com, about 61-percent of Floridians voted in favor of amendment two.