ELI5 How it is possible for companies to afford $15/hour minimum wage

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One of the problems is that the term 'small business' is too vague. Technically, qualification for most US small business incentives requires a total workforces of less than 500 employees.

I can only reply specifically in regards to small restaurant management which is my field of expertise. 47% of minimum wage workers work in the food service industry. While opposition to minimum wage increases is noted amongst restaurant owners is noted, I personally feel as if it's a bit nearsighted, and considerably [overhyped](www.forbes.com/sites/rickungar/2015/03/22/minimum-wage-increase-killing-seattle-restaurants-anatomy-of-a-lie-from-inside-the-bubble/1/). As a chef, in a quality establishment, I can tell you that my upmost concern is maintaining a popular restaurant, maintaining consistant quality, and providing a living for my skilled employees, and a temporary or supplementary living for my unskilled employees.

My cooks are on average making around $15 an hour, and my dishwashers are making considerably less at around $10 an hour. I interview and hire new employees but only make recommendations about pay scales to ownership. All of my new cooks have gone to college, some of the older employees have significant work experience that, as of now, allows them to remain competitive. Front of house employees make tipped minimum, which in this particular establishment is ridiculous. In my opinion, FOH employees should pay from tips to work here, like a hair dresser, stripper, or mechanic(some) might. I have servers making over 80K.

At this price point ($228 dinner check average) an increase in minimum wage would have almost no direct impact upon sales with regards to an increase in buying power. Our relationship with our clientele relies upon the leveraging of not only economic, but also more importantly cultural capital.

That being said, both single payer healthcare and free (or significantly reduced) college tuition would have a significant impact upon our ability to recruit and maintain employees. I have friends who graduated from culinary school (associates and later bachelors) who have upwards of 120K in student loans. We consistently lose high quality employees to corporate resorts and private clubs because they have the capability of leveraging the scale of their institutions towards healthcare aquisition. A young chef has significant barriers to employment with small busineses when he has ~$500 in student loans and ~$500 in healthcare expenses. I find myself in the position of training chefs for corporate restaurants.

Again, even within the restaurant industry, there is specific variance in regards to the effect upon minimum wage in terms of category. I can only speak in regards to the trade journals I subscribe to (6), as well as the information I gain as a member of the NRA (National Restaurant Association). Fast Food is trending towards automation, and a significant part of their business model already revolves around minimum labor. I honestly don't think a Mcdonalds could run with less people than it does. An increase in the minimum wage would probably result in an increase in hiring in within already successful franchises(Subway, McDonalds, Five-Guys), but might result in the decimation of franchises that are struggling(Looking at you Dairy Queen). I'm generally familiar with the business model of Fast-Food in general, but I have no corporate fast food experience.

Fast-Casual restaurants (like Chipotle or Panera) are currently in a boom. A higher minimum wage is likely to help them more than it will hurt them, as these are the places where disposable income is first spent. Also, interestingly, their political/business values have a unique overlap with the progressive movement. I have considerable book knowledge on this segment of the industry, as I wrote my senior thesis on the viability of non-value based fast-casual restaurants in the coming decade, focusing specifically on the co-opting/alignment of progressive values.

Tl;dr - Who the fuck knows.

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