Bar Rescue Host: Federal Minimum Wage Mandate Would be “Horrifying” for the Restaurant Industry


The Democratic candidates who are advocating for a federal minimum wage increase are out of touch with the industries that would be affected. The restaurant industry, for example, would be the first to cut jobs, hours, and probably turn that $10-burger into a $25-burger. Proponents should really be honest with themselves: Would you buy a $25-burger?

Restaurants in areas like New York and Seattle that have already implemented minimum wage increases are already seeing the negative effects, and others in the restaurant industry fear a universal policy.

Bar Rescue host Jon Taffer explains why a $15 minimum wage would be “horrifying” for the restaurant industry:

“It’s horrifying. Think about it, based upon different states and the tax credit you get for tips, it’s a 50 percent or greater labor cost increase. No industry can sustain a 50 percent labor cost increase,” Taffer told “Fox & Friends” after being asked about the impact on the restaurant industry.

Taffer said that, as a result of minimum wage increases, Seattle lost nearly 1,000 restaurants and described the measure as a “shock to the [restaurant] industry economically.”

Taffer said restaurants face a “crisis mode” when confronted with a choice of raising prices significantly to account for higher labor costs or cut workers.

“What we’re going to do is we’re going to eliminate employees and we’re going to incentivize more robotics,” said Taffer, whose Paramount Network show is about to kick off its sixth season.

“When they talk about raising wages and raising taxes, it doesn’t make sense to me.”

Proponents are not looking out for the same workers they wish to help by implementing a federal policy. Minimum wage jobs are mostly entry-level jobs meant to give workers the experience and skills they need to move up. Second, such a policy would force industries to cut jobs, hours, or, in general, force restaurants to close. These policies hurt the economy, hurt employers, and hurt the ability to achieve the American Dream.

Out-of-touch bureaucrats should stop pretending they know a thing or two about basic economics, because support for a minimum wage increase indicates the opposite to be true.