Minnesota Restaurant Charges Customers “Minimum Wage Fee” to Offset New Pay Laws

[dmcowen674]

8-8-2014

http://www.slate.com/blogs/the_slat...taurant_charges_minimum_wage_fee_on_bill.html

Minnesota Restaurant Charges Customers “Minimum Wage Fee” to Offset New Pay Laws

A Minnesota restaurant isn’t happy about a recent minimum wage hike in the state. The Oasis Cafe in Stillwater, Minn. decided to do something about it—it’s charging customers a minimum wage fee of 35-cents to offset the costs.

The restaurant is essentially paying its 12 hourly employees an extra $2.28 per day.

The restaurant responded to customer complaints on Facebook.

With regards to why we're charging a $.35 fee to cover the recent $.75 increase in minimum wage…we estimate the increase in labor cost will cost our company more than $10,000 per year…which has to be offset by an increase in revenue in order to operate profitably. Rather than increase the prices of our menu items, we chose to charge a flat fee. If the state of Minnesota would pass tip credit, like 43 other states have done, none of this would be necessary. For what it's worth, we pay our people very well. Our dishwashers start at $10/hour, our cooks start at $12/hour and our servers average more than $20 when you consider what they earn in tips.

 

[dmcowen674]

Previously we had Restaurants adding an ObamaCare fee now this

 

[dank69]

These types of political statements always end up biting the establishment in the ass.

 

[Doc Savage Fan]

I don't know which is sadder...the way the restaurant owner expressed his dissatisfaction...or you expressing yours over such a trivial matter.

 

[Veliko]

I don't know which is sadder...the way the restaurant owner expressed his dissatisfaction...or you expressing yours over such a trivial matter.

He's discussing a news item on a discussion forum, something that is a perfectly normal thing to do.

 

[blankslate]

These types of political statements always end up biting the establishment in the ass.

I'd go to a restaurant the raised their prices and ending up costing a bit more than the other restaurant who kept the same meal price but tacked on the "minimum wage fee" as a political statement.

Most people who are middle of the road or swing voters would probably be turned off by overt political statements by businesses.



...

 

[Sheik Yerbouti]

That'd be the last receipt I'd see and/or pay from that restaurant. Couldn't just raise the price of items by .08 each, had to be a dickhead about it.

 

[Engineer]

That'd be the last receipt I'd see and/or pay from that restaurant. Couldn't just raise the price of items by .08 each, had to be a dickhead about it.

This.

 

[Fanatical Meat]

Amateur mistake, anyone involved with sales should know that its never a good idea to mix religion or politics with sales.
Also if his utility bills increase will there be a "utility" fee? To me this is a perfect opportunity to have a small price increase and simply tell people or post something in the menu that you have a great staff and its important to pay them for their superior work.

 

[waggy]

idiotic move.

but let them do idiotic shit. if you don't like it don't eat at the place.

 

[ivwshane]

Let me see if I get this straight; he pays his employees well, so well in fact that he pays them well above the future minimum wage and he's complaining about his costs going up? Exactly how did his costs go up?

We could assume his suppliers costs went up and were then passed on to him but that seem unlikely considering only about 83,000 people in Minnesota make minimum wage and that's calculated using the higher, federal minimum wage of $7+.

Sounds like another bullshit artist to me, I'm guessing his business will tank soon anyway, people who don't take care of their employees usually don't do as well as those that do.

 

[MomentsofSanity]

Let me see if I get this straight; he pays his employees well, so well in fact that he pays them well above the future minimum wage and he's complaining about his costs going up? Exactly how did his costs go up?

We could assume his suppliers costs went up and were then passed on to him but that seem unlikely considering only about 83,000 people in Minnesota make minimum wage and that's calculated using the higher, federal minimum wage of $7+.

Sounds like another bullshit artist to me, I'm guessing his business will tank soon anyway, people who don't take care of their employees usually don't do as well as those that do.

They make that much with tips. Most likely he pays them minimum wage and they earn the additional income via customers. Since there's no tip credit in Minnesota tipped employees must still be paid full minimum wage for hours worked instead of a reduced hourly rate which I believe is about $2.13. So his per employee costs will increase by $0.75 for each worked hour.

 

[ch33zw1z]

We rarely eat out, and if I saw that on the receipt I'd probably stop going. But if that's what the owner wants to do, and it's working for him, then whatever.

 

[xBiffx]

Any different than a healthcare surcharge? Seen plenty of those lately.

 

[ivwshane]

They make that much with tips. Most likely he pays them minimum wage and they earn the additional income via customers. Since there's no tip credit in Minnesota tipped employees must still be paid full minimum wage for hours worked instead of a reduced hourly rate which I believe is about $2.13. So his per employee costs will increase by $0.75 for each worked hour.

I see. So he really doesn't pay his employees well then.

 

[Engineer]

Any different than a healthcare surcharge? Seen plenty of those lately.

Must be an Iowa thing as I've seen none in KY, WV, TN, GA and FL.

 

[Doc Savage Fan]

He's discussing a news item on a discussion forum, something that is a perfectly normal thing to do.

Looks like we have much different ideas as to what qualifies as news.