Minimum Wage Is Going Up in 24 States Starting in 2020, But Operators Aren’t As Worried As You Might Think

Minimum wage has been a contentious issue for restaurant workers and owners for years, but regardless of feelings on either side, incremental increases are taking effect in nearly half of U.S. states in 2020. Some more ambitious legislation has been passed by the U.S. House of Representatives, including the Raise the Wage Act—which would increase the federal minimum wage by more than double—but said act has shown no signs of moving through the Senate, according to Nation’s Restaurant News.

The U.S. federal minimum wage has been $7.25 an hour for 10 years. According to a simple Inflation Calculator, the purchasing power equivalent to $7.25 in 2019 (as compared to 2009) would come out to about $8.68. That may not seem like much, but anyone who has worked for low wages know that small raises can go a long way.

According to the National Restaurant Association’s Restaurant Trends Survey as reported by NRN, labor costs and minimum wage increases have actually fallen as a concern for restaurant operators in 2019 in terms of biggest challenges. While representatives from the NRA and other industry organizations have voiced concerns over minimum wage increases in the past, this survey indicates that operators are shifting priorities to employee recruitment and retention, building sales and competition from other restaurants. Franchises like Chipotle have combated recruitment issues with increased employee incentives including not only raised wages, but access to more comprehensive healthcare packages, debt-free higher education and more.