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SAVES JOBS & WORK HOURS
Minimum wage increases without a Tip Credit amendment requires full service restaurants to raise their prices
(See also NO TIP CREDIT HURTS ALL RESTAURANTS PATRONS IN MINNESOTA). These price increases
continually widen the cost gap for patrons making the choice between eating at a full service restaurant and eating
at less expensive alternatives or even deciding to eat at home a bit more often. The wider this cost gap becomes,
then the more often patrons make less expensive alternative choices for their meals. This means less business for
full service restaurants and consequently fewer jobs and hours for their employees.
Many chain restaurants have been reluctant to enter and expand in the Minnesota market over the last several years,
and several established independents have closed. This is due in large part to labor costs in Minnesota that far exceed
those in other states.
This fact results in fewer businesses and jobs in Minnesota and not just hospitality industry related jobs.
When businesses choose not to expand or build in Minnesota, it also costs construction and other job loss in Minnesota.