There is no question that increasing the minimum wage hurts businesses and keeps workers out of jobs. But New York decided to raise the minimum wage to a whopping $15 per hour, which puts fast food restaurants in a difficult position.
Look (below) as the White Castle chain explains how they will deal with the minimum wage increase. This is amazing!
This is something that’s become a bumper sticker,” Jamie Richardson tells me. “But it hasn’t really been thought through. There is a better way to get people out of poverty than hiking the minimum wage.” Richardson is a vice president at White Castle, the chain of famously white-painted and turreted burger joints specializing in slider-style hamburgers in the Midwest and Mid Atlantic. (Let me pause for a moment: If you’ve somehow made it through life without visiting this family-owned American treasure, stop reading this article, make like Harold and Kumar, and get yourself to the Castle . . . I’ll wait.)
White Castle, established in 1921 in Wichita, Kan., now operates more than 400 locations, with many in the New York City metropolitan area, which makes the news of New York governor Andrew Cuomo’s signing a bill that steeply hikes the minimum wage deeply personal. The wage will go from $9 to $15 an hour by 2018 in New York City, with the rest of the state seeing a more gradual phase-in schedule.
“Is there any room to raise prices to cover costs?” Richardson muses. “We think we’d need to increase menu prices by something like 50 percent. It’s not something we’ve done before. It’d be catastrophic.”
Richardson says — and common sense dictates — that if menu prices at fast-food chains shoot up by anywhere near 50 percent, many people will stop eating out as much, replacing trips to White Castle with trips to the grocery store. Customers can always vote with their feet and their dollars.
“Candidly, this could create a whole generation of kids who won’t get their first job,” Richardson laments. “We’re in tough neighborhoods — and White Castle hasn’t abandoned those neighborhoods. On the surface, higher pay seems noble, but it’s not – because it denies the reality of the free-enterprise framework that has allowed small businesses like ours to thrive.”
“As a family-owned business, White Castle has been around a long time — but now we have to assess things and ask: Where do we need to be at, by when, to make sure our business remains viable?” Richardson says. “New York says, ‘We’re open for business,’ but sometimes it seems like the only door that’s going to be open is the exit door.”
Via National Review
That means White Castle not only has to make your favorite hamburgers and fries more expensive… but they will have to decrease the number of jobs available anyway. That’s because food prices can only be raised so much. They have to let people go to remain profitable, sadly.
This is a perfect example of how left-wing policies supported by President Barack Obama and Hillary Clinton always backfire. They claim to support workers, yet a high minimum wage can keep countless young adults out of the workforce completely. Instead, those workers stay home and receive government welfare.
Certainly, White Castle will explore the replacing of workers with computerized ordering systems too.
Then, while jobs are being eliminated, the cost of living is increasing. This is outrageous! White Castle should be applauded for speaking out against this catastrophic policy.
What do you think of White Castle’s announcement about the minimum wage in NY? Please leave us a comment (below) and tell us.