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Minimum Wage Change Effects On Restaurant Pricing And Employment, Toni Repetti, Susan Roe

Hospitality Faculty Research

Purpose State and local governments are considering large increases to the minimum wage. As restaurants employ many individuals paid at or below minimum wage, these changes may affect their businesses. The purpose of this study is to evaluate the anticipated effects of minimum wage growth on employment and pricing in US food and beverage operations. Design/methodology/approach The study utilizes an experimental design where restaurant owners and managers are presented with scenarios of differing levels of potential minimum wage increases and are asked to anticipate changes to employment and pricing. Findings Restaurant owners and managers involved in the study indicate the …