Report Inappropriate Comments

Patient Man,

I saw a few articles that reviewed research done in both Seattle and San Francisco as to how the rise of minimum wage affects the businesses.

UC Berkeley Study - Seattle's minimum wage at $13 and soon to be $15 in 2021. Their results showed that wages increased while employment remained the same. If this study is to be trusted, one would conclude that minimum wage increases up to $13 does not have a substantial impact on restaurant employment.

Univ. of Washington Study - They looked at more than just the food service industry in Seattle. They found that hours worked in low-wage jobs dropped by around 9%, which was a drop big enough for there to be more overall money lost than money gained from the increase in wages. This means that there are not only less jobs, but workers are on average earning less money and putting less in the economy. According to this study, an increase to a $13 minimum wage has a devastating impact on low-wage workers.

Luca Study - They found that increases in minimum wage did affect the overall shut down rate of restaurants. According to their data, a 10% increase in minimum wage corresponds to around a 7% increase in restaurant shut downs. Interestingly, they found that a restaurant’s Yelp rating also significantly affected the likelihood of a restaurant shutting down after the wage increases. While low-rated restaurants were more likely to shut down, high rated restaurants were hardly affected.

As you stated, I don't think that it had any real affect on the restaurants that have closed here in Warwick. The industry is tough and longevity is hard to come by. We may have lost a few good ones but hopefully we will get to try some new restaurants that have great food and atmosphere.