Minimum wage hikes pose labor challenges

January 20, 2017

Restaurant operators are wrestling with minimum wage increases that are being phased in many parts of the nation.

As the calendar turned to 2017, minimum wage levels rose in 19 states and a number of local jurisdictions, and more hikes will come in the next two years as part of phased-in increases passed by lawmakers. The increased salary costs have made operators to look at labor management more critically than ever.

Willie Degel, CEO of New Old World Restaurant Hospitality Group in New York, said small operators are running out of ways to absorb or mitigate the increased labor costs.