21 States (and Dozens of Cities) Affected by 2017 Minimum Wage Increases: What Restaurants Can Do Now

Who is Impacted?

There is no doubt that the two industries with the most at risk over the impending minimum wage increases are retail and hospitality.  Especially, in hospitality, the increases are set to affect over 14 million Americans in the hospitality/ food & beverage industries - that's nearly 10 percent of the entire United States workforce.  Of course, the attempt to close the wage gap amongst restaurant employees is very important.  However, with these changes coming, restaurant owners and operators must prepare their staff.  Below are the 21 states, along with their cities/ counties where the new minimum wage increases are taking place:

States Affected:

• Alaska - $9.80

• Arizona - $10.00

• Arkansas - $8.50

• California - $10.00 for small employers; 10.50 for large employers

• Colorado - $9.30

• Connecticut - $10.10

• Florida - $8.10

• New York - Varies across state from $9.70 to $11 (as of 12/31/16)*

• Ohio - $8.15

• Oregon - $10.25 (as of July)

• South Dakota - $8.65

• Vermont - $10.00

• Washington - $11.00

• *The basic minimum wage is $9.70 in most of the state. But it's higher for the fast food industry; Long Island; Westchester County; and large and small employers in New York City.

Cities & Counties:

• California:

  • Cupertino - $12.00

  • El Cerrito - $12.25

  • Los Altos - $12.00

  • Mountain View - $13.00

  • Oakland - $12.86

  • Palo Alto - $12.00

  • Richmond - $12.30

  • Sacramento - $10.50 (large employers)

  • San Diego - $11.50

  • San Mateo - $12.00

  •  San Jose - $10.50

  • Santa Clara - $11.10

  • Sunnyvale - $13.00

• Hawaii - $9.25

• Maine - $9.00

• Maryland - $9.25 (as of July)

• Massachusetts - $11.00

• Michigan - $8.90

• Missouri - $7.70

• Montana - $8.15

• New Jersey - $8.44

• District of Columbia:

  • Washington, D.C. - $12.50 (as of July)

• Iowa:

  • Johnson County - $10.10

  • Linn Country - $8.25

  • Wapello County - $8.20

• Maine:

  • Portland - $10.68

• New Mexico:

  • Albuquerque - $8.80

  • Bernalillo - $8.70

  • Las Cruces - $9.20

• New York:

  • New York City - $11.00 (as of 12/31/16)

  • Long Island and Westchester, NY - $10.00 (as of 12/31/16)

• Washington:

  • Seattle - $15.00

  • SeaTac - $15.35

  • Tacoma - $11.15

What Restaurants Can Do NOW …

Begin to Strategically Schedule Staff:  Get your schedules down to a science by analyzing your most crucial shifts and recognizing the strongest members of your staff.  If you’re short on time, the TeamLive tool on Harri is a great help to managers and operators, who need to align their schedules with real-time sales, better streamline their labor costs and control their overall staffing budget.

Take Your Restaurant/ Store Hours Into Consideration:  Making this work means, keeping track of your stores’ sales patterns   For example, if Monday - Friday @ 11:30 AM - 2:00 PM are very busy lunch-pops for you, yet there is a sharp dip between the hours of 5:00 PM - 10:00 PM, you may want to consider closing earlier during the week and drive all of your marketing efforts towards weekday lunch.  Your POS weekly and monthly reports should be a great indicator of these trends. If you have never done this before, contact your POS company rep for help.  

Think About Raising Menu Item Prices:  This is the last resort, so, be sure that every change made is absolutely necessary.  Go into this knowing that you may lose some guests at the expense of your menu changes. With the help of your culinary team analyze each menu item and break it down by cost.

Compare vendors on the pricing of specific ingredients (ie. if carrots cost more at Baldor than AFI than switching vendors could be effective in this case).  Do your best to communicate to your guests that your business has slightly increased menu prices to stay open, pay your employees fair wages, and most significantly to continue to have the great privilege of serving them.  

Ways to Reduce Restaurant Turnover

Retaining and keeping employees happy has always been a challenge in any industry. It's both time-consuming and costly to keep hiring, so it's in your best interest to retain staff for longer periods of time. Here are some ways you can reduce the rate of turnover at your business: 

#1: Establish specific goals for new hires.

Refresh your new hires of their responsibilities on their first work day. Make sure they understand their duties and that they are able to accomplish them. Create goals for them to achieve, so they stay on task and are motivated. During the first week, sit down to discuss what you want to see from them after 30, 60, 90 days and beyond.

#2: Assign mentors to junior-level staff.

Mentorship is key across all fields, but especially so in the restaurant industry. Assign a mentor to a each new hire. The senior staff will have more experience and will be able to guide juniors around the restaurant, answer questions that they may have and provide moral support. 

#3: Allow time for team bonding.

Set aside time for the entire team to meet each other and interact during non-working hours. Consider breakfast or dinner outings as a group once a quarter, so staff can build relationships. Employees that develop workplace friendships feel happier with that they are doing, which definitely helps retention.

#4: Encourage and praise great work.

Take notice of the exceptional work done by your employees. By providing positive feedback, staff will feel a sense of achievement. Also, they will know that they are appreciated and able to contribute greatly to the business. Employees like feeling they are valued, or else, they will feel like they are not needed and thus, try to find a new job.

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Tips on How To Be a Successful Restaurant Owner

Behind every great restaurant is a great restaurant owner. In order for your restaurant to become a success, you'll need to be an effective leader for your team. Here are four key pieces of advice on how to be a successful restaurant owner: 

Listen to your staff.

Your staff, especially the front-of-house team, interact with customers on the daily. They have a first-hand account of what the dining hall is like, and what can be improved so that they can serve guests better. Hear your employees out by holding sessions where they can voice out their concerns. Stay close to them, so they feel comfortable enough to share their ideas.

Your guests are equally as important.

Like your staff, your customers' feelings should not be overlooked. Include a suggestions/comments card along with the bill, so that diners can rate their experience, the service, the food and other items that you want to know more about. Gather the cards and analyze them to see if there are any particular patterns. Publish the results, then have your staff go through them. Review the information as a group, as well, so that everybody understands what needs to be fixed.

Leave room for growth and expansion.

Keep in mind you cannot rush success. It is possible that your restaurant can expand in physical size/scale and you might need to hire more staff. Also, realize that at a certain point, growth and sales will slow down. Be sure to have a back-up plan or ideas on how you can help grow the business. Maybe consider opening a second location, or even relocating. If not, what about reworking your restaurant's concept, menu, etc.?

Remember your role as the leader.

As the restaurant owner, be sure that you lead by example. Conduct yourself as a person that is hard working and dedicated to the restaurant. When your employees see that, they will be encouraged to be so too. You want your staffers to know you as somebody that is strong and dependable.

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