Minimum-Wage Increase Hits Restaurant Chains on Friday

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The new federal minimum wage takes effect on Friday, July 24. The restaurant industry's lowest paid workers--except those who are tipped--will receive $7.25 an hour, a rate 11 percent higher than the current $6.55. This is the third increase since 2007 and the last mandated by the Fair Labor Standards Act passed that year.

The increase is a done deal, but the arguments continue. Here is a look back at some discussions and solutions for minimum-wage issues.

Restaurant, Consumer Survey Predicts Doom for Many Chains
A new study by the global business-advisory firm AlixPartners LLP shows that, given the current economy plus current conditions-including federally mandated pay increases-up to 40 percent of America's restaurant chains could face severe crises within the next 12 months.

Teamsters Protest Against National Restaurant Association
Teamsters rallied outside National Restaurant Association to support U.S. Foodservice workers; workers, labor leaders tell U.S. Foodservice and NRA to stop anti-worker lobbying.

Do You Want Living Wages with That?
Given the financial crisis, it seems odd that someone would argue against the "living wage" issue, at least in print. Sure, most businesses opposed raising the bottom-most wage during the last round of Congressionally mandated increases. But that was then.

New Parameters for Payday
Wage and hiring trends remain a subject of abiding concern among restaurant executives, who are adjusting their companies' compensation practices to absorb the impact of the slowdown.

Invest in Recruiting and Retaining General Managers
One of the most important and profitable steps any restaurant should take to maximize performance is effective labor management. No matter the size of the chain or how fast it is growing, controlling labor can help offset increases in minimum wages.

McDonald's Skinner on Looming Labor Crisis
"I don't have to tell you times are tough," McDonald's CEO Jim Skinner declared at the 2008 National Restaurant Association Show. "We're facing a perfect storm in many ways. We face a tightening labor market, minimum wage, mandated health care and immigration regulations."

Professor Jerry Newman Finds Committed Workers Behind QSR Counters
The problem with raising the minimum wage is that it rises across all industries so QSRs are in the same competitive position as before. The real question is whether you can find ways to use labor dollars more effectively.

Editorial: Minumum Efforts
A minimum-wage increase may not be the solution, but we need to help our own working poor.

British Hospitality Association Asks for Tip Code
The British Hospitality Association is urging all restaurants to adopt a new Code of Practice on how to distribute service charges. The Code has been developed in conjunction with the Department for Business, Innovation and Skills to back up new legislation banning the practice of topping up minimum wage with service charge.