In The News

Higher menu prices and reduced hours—consequences of a higher minimum wage

Raising the minimum wage means that diners and restaurant workers alike will feel the cost. A new survey from Harri, a workplace management software company, reveals that hiking the minimum wage leads to higher menu prices and fewer hours available to employees.

This data brings us face-to-face with the real-world consequences of the “Fight for $15” movement. Thanks to a flurry of new minimum wage laws at the state and local level, small businesses around the country are, predictably, experiencing rising labor costs, which are generally offset by higher menu prices.

Nearly two-thirds of respondents said they needed to reduce employee hours due to the higher minimum wage. Some restaurants have also had to eliminate staff positions—and others have been forced to close, unable to keep up with a sharp rise in the minimum wage.

Lawmakers and the general public need to be aware of these consequences that stem from mandating a higher minimum wage. The facts show that this misguided policy is hurting consumers and the people it’s intended to help the most.