According to the “Eater” website, Moo Cluck Moo, a Dearborn Heights based hamburger chain has closed its Canton location. The burger chain became a popular source for national media outlets as an example of a restaurant providing employees with a standard $15 “living wage”. The company has not commented on how much a factor labor cost was in their decision to close.
RedAlertPolitics.com reports that Lanespilitter Pizza in Emeryville California which is outside of San Francisco, decided to create a “living wage pizza”. The pizza ending up with a retail price of $30 and people haven’t been too keen on paying for it. Lanesplitter has seen a 25% drop in sales. The owner was quoted as saying, “I’m terrified of going out of business after 18 years.”
Reported in The Oregonian, Restaurants Unlimited, Inc, a Seattle-based restaurant group with more than a dozen Oregon locations, removed a one percent living wage surcharge it had instituted less than two weeks earlier. Jim Eschweiler, CEO said in a press release. “After further consideration we have decided to discontinue this policy.”
Townhall reports that Washington D.C. which established by law its own “living wage”, has lost 1,400 jobs in the first half of 2016. This loss—the steepest drop since the 2001 recession follows a significant minimum wage hike. Since mandating a base wage of $10.50 in July 2015 and another increase to 11.50 in July 2016, D.C. has seen employment in the restaurant industry trend downward, for a 3 percent job loss in 2016.