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HELPS SUSTAIN FULL SERVICE RESTAURANTS
In the present economy, most people are being fairly conservative regarding their discretionary spending. This means they are
carefully weighing their “dining out options” from a financial perspective. Today there are many more acceptable less expensive
options available in the counter service industry; places like Chipolte Mexican Grill and Panera Bread. Many counter service food
establishments do not allow tipping, so the overall costs of dining at these places have made them a very viable financial alternative
to full service restaurants. Partly for these reasons, full service restaurants have dropped in market share from over 50 percent to
closer to 30 some percent of consumer’s dining choices. It is for this reason that it is critically important for full service restaurants
to keep their prices as low as possible in order to remain competitive when vying for the “dining out dollars” being spent today.
A $3.30 an hour increase (as proposed by Senate File #504) in wages for the highest paid hourly employees in the restaurant industry
(tipped employees) will cause full service restaurants to have to raise their prices to cover the increased labor costs they will experience.
To more fully understand this point, please see the reference to the number of hours worked annually by tipped employees in a typical
full service restaurants by going to BENEFITS ALL MINNESOTA RESTAURANT PATRONS.