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The new labor regulation stifles restaurants in New York


The New York City Hospitality Alliance is a local lobby made up around a hundred dining located in the famous city guarded by the Statue of Liberty. It's about a pressure group representing its members before administrations.

In recent years a major campaign that has sustained this group has to do with the legalization of a delegation system cost customers not like a lot among politicians of the city.

Suffering for two years of continuous increases in wages in the restoration, Some owners start to feel suffocated by the pressures imposed artificially.

And we say artificially because that's exactly how have inflated earnings staff camaraderie, cleaning and customer service. Although the labor market has numerous stakeholders who see a benefit in going to work in some of these places for a lower amount, restorers can not give them because it would be breaking the laws requiring to pay a minimum hourly wage now stands at 8.65$.

The proposal of the group is simple, they want an extra charge 5% at meals, so that the cost of maintaining the workforce with a living wage is transferred to customers. However that is not possible in the present without incurring illegalities.

The panorama, already bad enough for professionals, It is about to get worse. In 2020 It is widespread in US. THE. a minimum wage 15$ and restaurants will have to adapt to. The adoption of these wages in the restoration would have a harmful effect on the labor market and economic fabric in many cities.

Activities would be especially hard hit as tourism, in the New York City is, As minimum, buoyant, even after the attack occurred in 11 September 2001; It is buyers with high purchasing power and urban environment lovers who see the city a world reference. New York is still home of shopping and metropolitan vanguardismo.

Thus, although groups as Fight for 15$, comprised mainly associated workers fast food outlets where tips are just and gala wage is really low, support the initiative. The reality is that when an overall view is sought the conflicting views are everywhere, permeating until the last of the charges present in a public house use, from the concierge, the valet if any, through each one of the professional food handlers, They transform and serve at the tables.

In mid-February a notable controversy was raging when announced the possibility that US restaurants. THE. acogiesen the European model in which the tips have no place, but the menu offers prices such that you can pay workers fairly and, in any case, It allows monetary awards to outstanding service; O, as an alternative, that Restaurant managers controlasen tips and repartiesen (o no) as appropriate juzgasen.

Some workers saw this as a great opportunity to get rid of sexism in camaraderie, professional cloistered in the kitchen who do not enjoy the chance to be rewarded for diners, problems to the state collection agencies, one from job insecurity. Others understood it as a direct heist pocket and a deterrent and weighed for those with little ability to differentiate local and attract a greater volume of business, seeing no benefits for their efforts and productivity.

An entrenched problem that no response from the authorities

The situation is becoming critical for many businesses in New York. The alliance has been waiting two years to receive a response from City Hall. They are waiting a response that allows them to get the best of both worlds: offer higher wages while a service to the consumer anonade spurs and conducive to granting tips.

At the moment, no luck smiles on them. The most that has come Department of Consumer Affairs of the City of New York It is to issue a statement saying be aware of the problem, but without providing a response: “We recognize that hospitality is a vital industry in New York. We are aware of the proposal and yet we have positioned ourselves on the measure”.

Andrew Rigie, NYC executive director of the Alliance hospitaly, he detracted the request indicating that “New York City, which it is probably the most competitive market in the restoration of the world, It is the only place where you are not allowed to include a clearly stated administrative fee”.

In the letter to Mayor de Blasio, signed by Rigie and business 5Napkin Burger, Heartland Brewery, Felice, Hill Country, grocery Bouloud, Quality y Rare Bar & Grill; clearly it showed the discontent of professionals. Among the hot spots included:

  • The salary supplemented with tips has doubled over the last three years.
  • The normal minimum wage has increased 71% in the same period.
  • The minimum wage guaranteed for exempt employees has increased 1.36 since 2015.

From a deep understanding of ecosystem functioning restoration, it warned of reduced profits in restaurants and impending job losses to which owners are forced to have to face such difficulties, and is already occurring.

Among other troubling consequences, Rigie señalaba:

  • The disappearance of waiters, chefs, scullery and other positions welcomed the wages supplemented with tips.
  • The increase in part-time contracts and reduction in days in general.
  • Job losses highly paid.
  • The restrictive effect of economic impositions on the menus that are being desperately to increase profit margins, and are detrimental to the quality of the dishes, service and user experience.
  • Close to restaurants, at a rate increasing.
  • Rising prices in menus within the limits set by law, but nevertheless not entirely cover the costs of compliance with employment standards.
  • The entrance of the restaurants in the Business unviable list within the metropolis of New York.

The letter concluded: “sr. mayor, we urge you to attend to the voice of your local community restaurants. We need the support of our city and. Thank you for taking action on the matter immediately”.

a response is requested that, as already mentioned above, He is not having the urgency that he would have liked to NYC Hospitality Alliance.

At the moment, are two years of 'truce’ until the ultimate consequences of this escalation of wages in the restoration are patents, Do you follow local closing around the Big Apple or business administration and come to an understanding? Time will tell.

About the Author

Article by the editorial team of DiegoCoquillat.com. It has professionals both in the field of hospitality, gastronomy and tourism, and new technologies and innovation.


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