Nation's Restaurant News: Federal minimum wage increase blocked in Senate; Restaurant industry remains divided on whether increase would be beneficial

By Lisa Jennings
Nation's Restaurant News, April 30 2014

A key Senate vote on Wednesday blocked a bill that set out to raise the federal minimum wage from $7.25 to $10.10 per hour — a result supported by restaurant industry associations including the National Restaurant Association and National Council of Chain Restaurants. ...

A coalition of business leaders that support Harkin’s bill say the current minimum wage of $7.25 per hour — and not the proposed increase — is what is hurting businesses and the economy.

Chris Sommers, co-owner of Euclid Hospitality Group, which includes the Pi Pizzeria concept of St. Louis and Washington, D.C., supports the wage hike.

“Too many people forget that the lower the wage, the higher the turnover, which costs businesses time and money in recruiting and training new workers,” he said in a statement.

“We raised our minimum wage to $10.10 without raising prices, knowing that employees who can make ends meet stay longer and are more productive,” the statement continued. “It’s a win-win when employees can concentrate on serving customers, without worrying about how they are going to make rent or put food on their own table.”

Senate Democrats pledged to continue highlighting the issue during this year’s elections. ... Restaurant industry lobbyist Rick Berman, who orchestrated with the support of many restaurant companies, a concerted effort to block the wage increase — including the use of billboards, full-page newspaper advertisements and radio commercials — told Nation’s Restaurant News he agreed the campaign isn’t over. ...