Restaurant owners feel burnt by minimum wage push, lack of direct COVID-19 relief

[DonViejo]

Battered industry, still reeling from the pandemic, raise concerns over Biden’s proposal to increase minimum wage

By David Lerman
Posted January 25, 2021 at 8:00am

Since the COVID-19 pandemic hit, customers have been scarce at Colonial Cottage, a family restaurant known for its fried chicken and catfish in northern Kentucky.

A staff that was 50-strong before the pandemic now stands at 32, with the restaurant allowed to serve at 50 percent capacity. Revenues in the last quarter, typically the busiest of the year, were down 37 percent, compared to the same period of the previous year, said owner Matt Grimes.

The battered restaurant industry has been pushing for months for bipartisan legislation that would create a $120 billion fund offering grants to restaurants to cover revenue shortfalls resulting from the pandemic and forced shutdowns.

But when President Joe Biden unveiled his $1.9 trillion COVID-19 relief plan this month, the proposed restaurant fund was nowhere to be found. Instead, Grimes and other restaurant owners found what they considered to be an unwelcome surprise: a plan to more than double the federal minimum wage to $15 an hour.

more
https://www.rollcall.com/2021/01/25/restaurant-owners-feel-burnt-by-minimum-wage-push-lack-of-direct-aid/

[dsc]

1. they do have a point about that

not having a fund for restaurants in the COVID relief bill is inexcusible.

[Johnny2X2X]

3. The states are doing a lot for them

There's money out there, not enough though. Biden's bill gives more money to the states who can help the small businesses in their states.

And the $15 minimum wage will be phased in, and will have exceptions for tipped workers and almost certainly for teen workers too.

[jpak]

2. Am I wrong?

Doesn't the Biden minimum wage increase only affect federal workers and contractors - not mom and pop fried catfish joints?

If so, someone should set these people straight.

Yup

[BannonsLiver]

4. You're half wrong.

Yes, his exec order only covers Fed workers but there will be a legislative push for a $15 min wage for everyone, likely with a long phase in.

[lame54]

6. But is it part of THIS bill?

[Massacure]

8. Yes, Biden has asked that it be included in the $1.9 trillion dollar relief bill

I'm not familiar if he's already presented a draft bill to congress or just an outline of desired items, but Biden does want a minimum wage hike as part of that legislation.

[mike_c]

5. This is an industry that directly profits from paying its workers starvation wages.

Cry me a river. Or start paying living wages.

[JHB]

7. Reminder, restaurateurs: it's the Republicans denying you aid.

Mitch spent most of last year letting a House relief bill just collect dust instead of letting the Senate vote on it, and it's the Republicans balking at relief packages now.