Due to the passage of Amendment 70 in November, Colorado’s minimum wage went from $8.31 per hour to $9.30 per hour on Jan. 1. The increase was the first of four increases scheduled to take place over the next three years, which in total will raise the minimum wage to $12 per hour in 2020.
Steve Kanatzar, owner of the Airplane Restaurant in Colorado Springs, came up with a solution to offset the increase, but it’s a solution that won’t make very many people happy.
He increased the prices on his kids’ menu.
“I increased it a dollar. My kids’ menu prices went from $4.99 to $5.99,” Kanatzer told KDVR.
The sad thing is that Kanatzer’s choice probably won’t be an isolated one. Kanatzer said most restaurants will have to adjust prices and change staffing to offset costs, which could mean anything from fewer servers to higher prices and longer waits.
“I’ve got a friend who has a restaurant and he’s going to do counter service from 2-4 (p.m.) so he’s not going to have a server at all,” Kanatzer said.
Kanatzar also said that smaller communities would be hit the hardest because they cannot afford the wage increases.
“Denver, Boulder and Greeley, those places are busy enough they can afford the minimum wage increase, but you take the people out in Alamosa and Monte Vista, they can’t afford a minimum wage increase,” he told KKTV.
Businesses find ways to stay in business, and one way to beat high a minimum wage is to eliminate the need for servers at all with self-serve kiosks. It’s sad that it must come down to this for some business owners, and liberal logic is to blame.
“I love my servers to death and they understand the position we are in,” Kanatzer said.
Democrats will never discuss the number of jobs lost due to minimum wage increases, because it’s an argument they can’t win. In addition, they will never talk about higher prices on products and services because higher prices always hurt more people than minimum wage increases help.
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H/T Mises Institute