Quote:
Originally Posted by Harry Lime
Need some TLDR to keep up in here.
The increase in cost to up an employee to a higher minimum wage is spread out amongst sales. For the example of the waiter, it's not one customer that is going to have to shoulder the burden of that increase. It's about 15 (less or more) customers over an hour. So the meal is not going to be $4.20 more. It's going to be $4.20 divided by customers. So more like 28 cents more per meal.
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Not quite. For one, there wouldn't be just one server working in the entire establishment. You would have prep cooks working in the day time, often before the place even opens up for business whose wages would need to be worked in. You would have kitchen staff working during the sales, possibly a host/hostess, bartender, other servers, etc... depending on the type of business.
You also have to account for the periphery costs that would go up. The companies supplying the product would have higher wage costs and would charge more for the food. The delivery companies would have higher wage costs and would charge more for delivery. If the business relies on advertising, the companies that provide those services will have higher wage costs which get passed on. Cleaning services, maintenance companies, equipment repairs, rent, and everything else becomes more expensive for the business owner. All those costs would have to get factored in.