By John Loughlin
Restaurateurs make a political statement by adding a surcharge to ‘cover’ the cost of paying the poorest workers a higher wage.
The Union-Tribune article helpfully provides a list of restaurants to boycott as well as some to support.
Back in May 2016, David Cohn speaking at a CREW event “It is so easy to vote for that [minimum wage] increase, but it is going to really raise your cost of entertainment and spark a new round of inflation that we haven’t seen since the 1970s.” He was reported as predicting that the results could lead to menu prices increasing a minimum of 30% over the next few years. From Jan 1, 2017 the Cohn Restaurant Group is adding a 3% surcharge to cover ‘mandated’ cost increases.
One restaurant association executive is quoted as saying “my advice to San Diego was don’t label it as something you’re doing because of the minimum wage because people will perceive you’re complaining or making a political statement.”
According to the article the Cohn Restaurant Group, Rockin’ Baja Lobster, Urban Kitchen Group, Brigantine, Bali Hai, and Tom Ham’s Lighthouse are all asking us to get political and spend our dollars someplace else.
Perhaps we could email Arsalun Tafazoli, cofounder of CH Projects, and encourage him to eliminate tipping at his restaurants, and instead have an inclusive what-you-see-is-what-you-pay-price, so he can help make it easier for San Diegans to pay real-wages to all workers – arsalun@neighborhoodsd.com
2017 is a fighting year.
Editor Update Friday January 6
CBS8 reports:
“A new meal surcharge isn’t sitting well with local diners and now it is raising legal concerns.
The City Attorney’s Office announced Thursday that it is looking into the legality of a surcharge being levied on some restaurant customers in response to San Diego’s minimum wage increase…
City Attorney Mara Elliott said the investigation was launched after complaints about the practice were received on a consumer hotline. The added cost was not made known to customers beforehand and was falsely billed as being mandated by the government, she said.
The city’s consumer hotline at (619) 533-5600 operates weekdays from 9 a.m. to 5 p.m. Complaints can also be filed online at sandiego.gov/cityattorney.”
John Loughlin is a self-proclaimed Technology Prognosticator, and immigrant. From exploding natural gas, to designing audiophile equipment, developing telecommunication systems and empowering people to take control of diabetes, he’s been helping people with technology for decades. His Ocean Beach based company, Ruby White provides communication & technology services to businesses, non-profits and progressive groups. He was recently elected, by club presidents, to be Director of Clubs, San Diego County Democratic Party.
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Cohn and other restaurateurs are adding a “government mandated” charge to their diner’s tabs.
Cohn, “Damn that government. Why does that government make sure our food is cooked to the proper temperature and our staff wash their hands after using the restroom?”
“Damn those health and safety inspections! Why doesn’t the government just allow us to keep all of the money and give the workers nothing.
Why must we pay the workers a living wage?”
Boo-Hoo…Whaaa
What next – the Republicans passing a law forbidding states and municipalities from raising the minimum wage? This has already happen with respect to state governments limiting local governments’ power.
http://www.governing.com/blogs/politics/gop-legislatures-limit-local-governments-power.html
Cohn knows something about the restaurant biz, but he knows little about economics and even less about politics. I strongly oppose the surcharge and think it is no more than a cheap trick for rich restaurateurs to use their meal checks to make a political statement that they have the RIGHT to pay their employees SLAVE wages that are too little to live on in San Diego. Those greedy restaurant chain owners need to face the moral and ethical reality that it is their duty, even their responsibility, to pay a LIVING WAGE. The surcharge is an outrage, and completely unjustified. I, for one, will NOT patronize restaurants that use this manipulation of customers to whine about having to pay the poor folks who work in their kitchens and bathrooms a few cents more an hour.
Went to Sammy’s Woodfired Pizza in Carlsbad last night & they have the surcharge on their checks as well! We were very confused as to what this was & asked the waitress who said it’s something new & they weren’t even made aware of this surcharge until she brought out her first check to a table on January 1st. She had to look it up online to see what the surcharge was all about because the manager was very vague on what it was. We paid it, but I think it should be optional IMO.
Surcharges are the tool of the inept operator who doesn’t understand costs, pricing strategy or value. What’s next an “I Need Money To Feed My Cat” surcharge?
Some greedy owners will look for any excuse. Rounding, say wages go up $1/hr from $10 to $11… about 10%. A restaurant likely has wage costs between 28% and 33%. Well… 10% of 30% is a 3% cost increase.
Now those who are suddenly making 10% more will likely spend it, even if half. So demand goes up. You are selling more of those $10.95 burgers and $6 draft beers. Seattle, San Francisco, Portland… All with high minimum wages, have a thriving restaurant business. Never in history has raising the minimum wage hurt the economy, just the opposite.
So, to Cohn and the greedy millionaires looking to maintain that same gross profit while blaming the working class, try this.
Give it a few months, there will be no change. If you insist, don’t tack on $.30 to an $8.95 item ($9.25)… It won’t sell as much. Tack .$70 on your high end items that the working class isn’t buying. $16.25 to $16.95, and sell just as many.
As bad as this situation is, all of us new when we voted for the min wage increase there would be some kind of cheap shot like this. There is no one who didn’t know. We maybe didn’t think it would be in the form of a “surcharge” but we knew at the very least there would be price increases.