Local businesses adapt to tipped wage hike

Posted at 6:36 PM, Jan 04, 2016
and last updated 2016-01-05 06:44:17-05

Just five days into the wage hike for tipped employees and so far, the restaurant owner at Glen Park Tavern says they haven’t felt the pinch - yet.

“No not right away and I don’t think we will right away,” Ellie Grenauer told 7 Eyewitness News. “It’s going to take some time for the increase cost to set in.”

But in an industry with a shrinking profit margin Grenauer says the Tavern, like many other businesses, has already planned to make several changes to accommodate the new base pay.

“We are going to change our menu, which we were planning on doing anyway, but there will be some price increases,” Grenauer said. “But the whole thing can’t come back on the consumer.”

The Tavern says in the months ahead of the change, they explored other ways to cut corners, ways that wouldn’t necessarily hit a customer’s wallet.

“So we’re cutting our credit card processor trying to save money there and cutting back on labor a little bit.”

But those directly impacted by the hike – the bartenders and servers -- say it is only a matter of time before the customer feels the effect of their wage hike.

“People that aren’t good tippers are going to continue to not be good tippers regardless,” Janet Brenner told 7 Eyewitness News.

“People who like the service they get, even if they know I know I make $7.50, want to show they appreciate the good service so maybe it won’t have that much effect. I just don’t know.”




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