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Post Info TOPIC: Half of fast-food restaurants could close if hourly wage goes to $15


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Half of fast-food restaurants could close if hourly wage goes to $15
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http://www.newsday.com/business/fast-food-wage-board-hearing-on-li-rescheduled-to-june-18-in-garden-city-1.10507890 Reprints

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Half of fast-food restaurants on Long Island could close if hourly wage goes to $15, says poll

June 4, 2015 by JAMES T. MADORE / james.madore@newsday.com

Shantel Walker, 33, left, a worker at Papa

Nearly five in 10 fast-food restaurants on Long Island could close if their workers' wages were raised to $15 per hour, according to a poll released Thursday by a group that opposes increasing wage rates.

The survey, conducted last month by the Employment Policies Institute, queried 156 fast-food executives in Nassau and Suffolk counties. The Island has 2,315 fast-food establishments -- defined as any restaurant without table service -- and most employ fewer than 10 people, state data shows.

Forty-nine percent of local owners told the Washington-based institute that they were either very likely or somewhat likely to shut if New York State increases their workers' pay to $15 per hour. Fast-food workers currently earn at least the state minimum wage of $8.75 per hour.

 

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The poll was released in advance of Friday's public hearing being held in Buffalo by a state board considering whether to recommend a raise for fast-food workers statewide.

The poll also found about nine in 10 fast-food restaurants in Nassau and Suffolk counties would hike prices and reduce staff or staff hours if pay jumped to $15.

Michael Saltsman, research director at the institute, which receives support from the restaurant industry, said higher pay for fast-food employees would "destroy opportunities for the people they're trying to help."

The National Employment Law Project, which backs a pay raise, said the institute's poll is "biased."

Paul Sonn, the project's top attorney, said, "This is not a reliable predictor of what's likely to happen if the minimum wage is raised."

Similar polls in San Jose, San Francisco and Seattle were proved wrong, he said, after those cities gave fast-food workers a raise. The Manhattan-based Law Project is funded by the Ford Foundation and others.

The state fast-food wage board will hold a hearing in Garden City on June 18 at noon in the multipurpose room at the College Center Building on the campus of Nassau County Community College.

The hearing was rescheduled from June 15.

The three-member board is expected to issue its recommendations in July to the state labor commissioner. The commissioner, who reports to Gov. Andrew M. Cuomo, then can unilaterally implement them.

People wishing to testify should register at on.ny.gov/ 1KOXOEB.

A report last month from the labor department found the Island's 24,074 fast-food workers, both full-time and part-time, earn $16,363 per year, on average.

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Duh



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On the bright side...... Christmas is coming! (Mod)

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LOL, Gaga, that was exactly what I thought when I saw the title of the thread. You beat me to it!

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They want $15 an hour AND a standing Ovation! LOL!  biggrin



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Frozen Sucks!

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But we all knew this. The restaurant owners would have to raise prices. Who wants to pay family restaurant prices for a fast food joint? Customers won't. It will drastically change the landscape of fast food. They would have to cut the number of positions. Restaurants would become a drive through only so no cleaners for a dining room would be needed, certainly no more playgrounds would be available.
These worker don't understand the economics of hourly wages and so now will screw themselves out of jobs.

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On the bright side...... Christmas is coming! (Mod)

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I know what to do_sometimes wrote:

But we all knew this. The restaurant owners would have to raise prices. Who wants to pay family restaurant prices for a fast food joint? Customers won't. It will drastically change the landscape of fast food. They would have to cut the number of positions. Restaurants would become a drive through only so no cleaners for a dining room would be needed, certainly no more playgrounds would be available.
These worker don't understand the economics of hourly wages and so now will screw themselves out of jobs.


 Unfortunately, that "we" is not universal.



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The same thing happened when unions invaded manufacturing companies. Businesses moved their factories to non-unionized states or to Asia, and workers wondered what happened.

Vote for the union and collect Unemployment!



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The "family" restaurants will be affected too. THEY TOO will have to raise prices or close down.

So the fast food meal for 4 might go from $20 to $30, and the meal for 4 in a Diner will go from $40 to $60.



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My spirit animal is a pink flamingo.

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Those fast food prices are already 30-40 a person.

About $10 a person on average.

But yeah. Duh.



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Frozen Sucks!

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ed11563 wrote:

The "family" restaurants will be affected too. THEY TOO will have to raise prices or close down.

So the fast food meal for 4 might go from $20 to $30, and the meal for 4 in a Diner will go from $40 to $60.


 Typical family restaurants pay waitstaff minimum, not minimum wage.  So they shouldn't be affected.



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I see more and more fast foods going auto mated.

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Convenience stores seem to be making a killing on fast food. With automated ordering of subs and all kinds of foods. Sheetz and GetGo are busy all the time.

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