When the Old Model Doesn’t Work, Change the Model

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.

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About VSheree

V. Sheree Williams is the publisher of Cuisine Noir Magazine, the country's first digital and print culinary magazine that connects the African diaspora through food, drink and travel. For more, in-depth stories, visit www.cuisinenoirmag.com
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