Six ways to solve your restaurant’s labor problem
[Restaurant Hospitality] Ask any restaurateur what the top three industry challenges are today and the likely answer will be: “labor, labor and labor.”
Minimum wages are climbing to $15 per hour and businesses are struggling to cope with already thin margins.
In Palo Alto, Calif., for example, where the $12 per hour minimum wage is scheduled to reach $15 per hour in January 2019, restaurants like La Bodeguita del Medio say they’re taking a loss.
“I don’t want to say labor is killing us, but it’s killing our profitability, said co-owner Michael Ekwall. “We just don’t think we can raise our prices that much. We haven’t tested the waters, but we’re taking a loss right now.”
Add to that an ongoing labor shortage heightened by low unemployment.