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Photo: Richard Drew/AP","credit":null,"description":null,"imgSizes":{"kqedFullSize":{"file":"https://ww2.kqed.org/app/uploads/sites/24/2013/10/mcdonalds-workers-protest.jpg","width":624,"height":350}},"fetchFailed":false,"isLoading":false}},"audioPlayerReducer":{"postId":"stream_live"},"authorsReducer":{"byline_bayareabites_98389":{"type":"authors","id":"byline_bayareabites_98389","meta":{"override":true},"slug":"byline_bayareabites_98389","name":"Hansi Lo Wang, \u003ca href=\"http://ww2.kqed.org/bayareabites/author/nprfood/\">NPR Food\u003c/a>","isLoading":false},"byline_bayareabites_98365":{"type":"authors","id":"byline_bayareabites_98365","meta":{"override":true},"slug":"byline_bayareabites_98365","name":"\u003ca href=\"http://civileats.com/author/tgreenaway/\">Twilight Greenaway\u003c/a>, \u003ca href=\"https://ww2.kqed.org/bayareabites/author/civileat/\">Civil Eats\u003c/a>","isLoading":false},"byline_bayareabites_96350":{"type":"authors","id":"byline_bayareabites_96350","meta":{"override":true},"slug":"byline_bayareabites_96350","name":"Kate Williams, \u003ca href=\"http://ww2.kqed.org/bayareabites/author/berkeleysidenosh/\">Berkeleyside NOSH\u003c/a>","isLoading":false},"byline_bayareabites_93172":{"type":"authors","id":"byline_bayareabites_93172","meta":{"override":true},"slug":"byline_bayareabites_93172","name":"Poncie Rutsch","isLoading":false},"byline_bayareabites_78042":{"type":"authors","id":"byline_bayareabites_78042","meta":{"override":true},"slug":"byline_bayareabites_78042","name":"Alan Greenblatt","isLoading":false},"byline_bayareabites_74829":{"type":"authors","id":"byline_bayareabites_74829","meta":{"override":true},"slug":"byline_bayareabites_74829","name":"Allison Aubrey","isLoading":false},"byline_bayareabites_72311":{"type":"authors","id":"byline_bayareabites_72311","meta":{"override":true},"slug":"byline_bayareabites_72311","name":"Allison Aubrey","isLoading":false},"marktaylor-2":{"type":"authors","id":"8","meta":{"index":"authors_1591205172","id":"8","found":true},"name":"Mark Taylor","firstName":"Mark","lastName":"Taylor","slug":"marktaylor-2","email":"mark@emptypictures.net","display_author_email":false,"staff_mastheads":[],"title":null,"bio":"Mark Taylor founded KQED Arts in 2005 and served as Senior Interactive Producer for Arts and Culture through 2014. 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We have been fighting, and today we have made history,\" said Alvin Major, a 49-year-old cook at a KFC restaurant in Brooklyn. He said a $15 minimum wage would mean that he could stop relying on food stamps to feed his family of six.\u003c/p>\n\u003cp>\"This will help me to take care of my kids, send them to the right school and put food on the table,\" he said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The bump to $15 an hour in New York, which would affect workers at chains with 30 or more stores nationally, would match recent increases in San Francisco, Seattle and Los Angeles. It would take effect over the next three years for New York City, and over the next six years for the entire state, if the state's labor commissioner approves the proposal.\u003c/p>\n\u003cp>Gov. Andrew Cuomo, who appointed the wage board that recommended the wage hike, called its proposal an important first step.\u003c/p>\n\u003cp>\"We will not stop until we reach true economic justice and we raise the minimum wage for every worker in every job in this state,\" he said.\u003c/p>\n\u003cp>The fast-food industry is one of New York's biggest employers of low-wage workers.\u003c/p>\n\u003cp>Randy Mastro, an attorney for fast-food franchise holders, says his clients are being unfairly targeted.\u003c/p>\n\u003cp>\"There are many other similarly situated restaurants, diners, food counters, not included in this proposal,\" he said.\u003c/p>\n\u003cp>It also could affect business growth, hiring and competition in the state, says Carolyn Richmond, who represents restaurant owners in the New York City Hospitality Alliance.\u003c/p>\n\u003cp>She says the proposed wage hike would mean that some of her clients won't be able to hire more workers, and that smaller fast-food chains that want to expand might think twice before opening in New York.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Copyright 2015 \u003ca href=\"http://www.npr.org/\" target=\"_blank\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n","blocks":[],"excerpt":"The increase, which boosts the minimum wage for many fast-food workers from $8.75 to $15 over several years, needs the labor commissioner's OK. Franchise holders say they're being targeted unfairly.","status":"publish","parent":0,"modified":1437669364,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":16,"wordCount":384},"headData":{"title":"Fast-Food Workers Cheer As $15 Minimum Wage Advances In New York State | KQED","description":"The increase, which boosts the minimum wage for many fast-food workers from $8.75 to $15 over several years, needs the labor commissioner's OK. Franchise holders say they're being targeted unfairly.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Fast-Food Workers Cheer As $15 Minimum Wage Advances In New York State","datePublished":"2015-07-23T16:33:54.000Z","dateModified":"2015-07-23T16:36:04.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"98389 http://ww2.kqed.org/bayareabites/?p=98389","disqusUrl":"https://ww2.kqed.org/bayareabites/2015/07/23/fast-food-workers-cheer-as-15-minimum-wage-advances-in-new-york-state/","disqusTitle":"Fast-Food Workers Cheer As $15 Minimum Wage Advances In New York State","nprByline":"Hansi Lo Wang, \u003ca href=\"http://ww2.kqed.org/bayareabites/author/nprfood/\">NPR Food\u003c/a>","nprStoryId":"425460095","nprApiLink":"http://api.npr.org/query?id=425460095&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"http://www.npr.org/sections/thesalt/2015/07/23/425460095/fast-food-workers-cheer-as-15-minimum-wage-advances-in-new-york-state?ft=nprml&f=425460095","nprRetrievedStory":"1","nprPubDate":"Thu, 23 Jul 2015 09:40:00 -0400","nprStoryDate":"Thu, 23 Jul 2015 04:30:00 -0400","nprLastModifiedDate":"Thu, 23 Jul 2015 09:15:31 -0400","nprAudio":"http://pd.npr.org/anon.npr-mp3/npr/me/2015/07/20150723_me_fast-food_workers_cheer_as_15_minimum_wage_advances_in_new_york_state.mp3?orgId=1&topicId=1017&d=152&p=3&story=425460095&t=progseg&e=425507632&seg=7&ft=nprml&f=425460095","nprAudioM3u":"http://api.npr.org/m3u/1425512002-77d167.m3u?orgId=1&topicId=1017&d=152&p=3&story=425460095&t=progseg&e=425507632&seg=7&ft=nprml&f=425460095","path":"/bayareabites/98389/fast-food-workers-cheer-as-15-minimum-wage-advances-in-new-york-state","audioUrl":"http://pd.npr.org/anon.npr-mp3/npr/me/2015/07/20150723_me_fast-food_workers_cheer_as_15_minimum_wage_advances_in_new_york_state.mp3?orgId=1&topicId=1017&d=152&p=3&story=425460095&t=progseg&e=425507632&seg=7&ft=nprml&f=425460095","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cstrong>Listen to the Story on Morning Edition:\u003c/strong>\u003cbr>\nhttp://pd.npr.org/anon.npr-mp3/npr/me/2015/07/20150723_me_fast-food_workers_cheer_as_15_minimum_wage_advances_in_new_york_state.mp3\u003c/p>\n\u003cp>There aren't a lot of obscure government board meetings that warrant a watch party, let alone one with a marching band.\u003c/p>\n\u003cp>But that's how fast-food restaurant workers and their supporters celebrated Wednesday on a blocked-off street in Manhattan, as they watched a state panel recommend a $6.25 increase in their hourly wage, to $15.\u003c/p>\n\u003cp>\"It's a victory! We have been fighting, and today we have made history,\" said Alvin Major, a 49-year-old cook at a KFC restaurant in Brooklyn. He said a $15 minimum wage would mean that he could stop relying on food stamps to feed his family of six.\u003c/p>\n\u003cp>\"This will help me to take care of my kids, send them to the right school and put food on the table,\" he said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The bump to $15 an hour in New York, which would affect workers at chains with 30 or more stores nationally, would match recent increases in San Francisco, Seattle and Los Angeles. It would take effect over the next three years for New York City, and over the next six years for the entire state, if the state's labor commissioner approves the proposal.\u003c/p>\n\u003cp>Gov. Andrew Cuomo, who appointed the wage board that recommended the wage hike, called its proposal an important first step.\u003c/p>\n\u003cp>\"We will not stop until we reach true economic justice and we raise the minimum wage for every worker in every job in this state,\" he said.\u003c/p>\n\u003cp>The fast-food industry is one of New York's biggest employers of low-wage workers.\u003c/p>\n\u003cp>Randy Mastro, an attorney for fast-food franchise holders, says his clients are being unfairly targeted.\u003c/p>\n\u003cp>\"There are many other similarly situated restaurants, diners, food counters, not included in this proposal,\" he said.\u003c/p>\n\u003cp>It also could affect business growth, hiring and competition in the state, says Carolyn Richmond, who represents restaurant owners in the New York City Hospitality Alliance.\u003c/p>\n\u003cp>She says the proposed wage hike would mean that some of her clients won't be able to hire more workers, and that smaller fast-food chains that want to expand might think twice before opening in New York.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Copyright 2015 \u003ca href=\"http://www.npr.org/\" target=\"_blank\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/98389/fast-food-workers-cheer-as-15-minimum-wage-advances-in-new-york-state","authors":["byline_bayareabites_98389"],"categories":["bayareabites_1962","bayareabites_10028","bayareabites_10916","bayareabites_2035","bayareabites_34"],"tags":["bayareabites_12104","bayareabites_11502","bayareabites_11505","bayareabites_2569","bayareabites_72"],"featImg":"bayareabites_98390","label":"bayareabites"},"bayareabites_98365":{"type":"posts","id":"bayareabites_98365","meta":{"index":"posts_1591205157","site":"bayareabites","id":"98365","score":null,"sort":[1437601802000]},"guestAuthors":[],"slug":"goodbye-tipping-hello-living-wage-the-changing-face-of-progressive-restaurants","title":"Goodbye Tipping, Hello Living Wage: The Changing Face of Progressive Restaurants","publishDate":1437601802,"format":"standard","headTitle":"Bay Area Bites | KQED Food","labelTerm":{"site":"bayareabites"},"content":"\u003cp>A new message appearing at the top of the menu at Camino, a high-end restaurant in Oakland, California, \u003ca href=\"http://www.caminorestaurant.com/no-tips\" target=\"_blank\">declares the end of an age-old American practice\u003c/a>. “No more tips!” it reads. “Our prices now include service so we can pay our employees a living wage.”\u003cspan id=\"more-22668\">\u003c/span>\u003c/p>\n\u003cp>The new prices—which have gone up 22 percent, and which now range from $29 to $37—and the restaurant’s corresponding tipping policy went into effect earlier this year, around the time the city’s minimum wage rose 36 percent to $12.25. And the two are related. While the new policy probably won’t put more into pockets of Camino’s decently paid servers, it will do something quietly revolutionary: it will help them offer a living wage to their (traditionally underpaid) cooks, dishwashers, and bussers.\u003c/p>\n\u003cp>Camino’s husband-and-wife co-owners Russell Moore and Allison Hopelain shared their philosophy on the restaurant’s website: “We have tried to instill a sense of teamwork at Camino—a place where each member of the team—waiters, bartenders, cooks, hosts and dishwashers—is all involved in serving our guests. And yet, we have been paying them as if we are running two separate businesses.” But the new policy changes all that.\u003c/p>\n\u003cp>A server working on a recent weekend seemed optimistic, although she has the least to lose from the new arrangement. Her new hourly wage is livable, she said, even if it means she never walks away with the occasional motherlode of tips in the high season. “If you’re willing to stick it out through the year, it makes up for the lack of big nights in the high season on slow shifts, during the less-crowded times of year,” she said.\u003c/p>\n\u003cp>“It means that all employees are paid based on their experience and have\u003cbr>\nroom to grow,” says Hopelain. “We offer any employee who is scheduled for five shifts a week health insurance and we do not cut shifts when we are slow.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>While a handful of \u003ca href=\"http://time.com/3890984/cities-highest-minimum-wage-map/\" target=\"_blank\">cities across the country\u003c/a> have plans to raise their minimum wages over the next five years, only a few have put the rubber to the road. Like Oakland and San Francisco, Seattle is taking a tiered approach to raising its minimum wage (i.e., different businesses are required to increase wages at varying rates, depending on their size) with the goal of hitting $15 an hour by 2020. While restaurants are inevitably passing some of these costs on to their customers, many are also taking the opportunity to develop progressive pay models that could begin to level the playing fields between the front and back of the house.\u003c/p>\n\u003cp>Raising food prices to replace tipping is only one of the approaches Oakland restaurants are taking to survive the wage hike and redistribute the wealth.\u003c/p>\n\u003cp>At several other restaurants around the city, such as Toast, Boca Nova \u003ca href=\"http://www.sfgate.com/restaurants/article/Minimum-wage-hike-hits-booming-Oakland-dining-6115583.php\">diners now pay\u003c/a> an added 15 to 20 percent \u003ca href=\"http://www.mercurynews.com/business/ci_27262359/service-charges-instead-tips-being-tried-out-at\" target=\"_blank\">service charge\u003c/a>. Although it doesn’t make a big difference in the final amount paid, service charges might be an easier pill for some customers to swallow than higher menu prices.\u003c/p>\n\u003cp>Dr. Michael Lynn, a professor of consumer behavior and marketing at the Cornell University School of Hotel Administration, says that his research shows that, “people don’t think about the tip as a part of restaurants’ expensiveness.” The same goes for a service charges, he adds. “So voluntary tipping and service charges are roughly the same in terms of perceptions of cost.”\u003c/p>\n\u003cp>In both cases the goal is to improve living conditions for the lowest paid workers in the chain—while paying their bills and retaining their most valuable employees.\u003c/p>\n\u003cp>\u003cstrong>An Industry Rife With Inequality\u003c/strong>\u003c/p>\n\u003cp>The American restaurant industry can be seen as a microcosm for the nation as a whole, in that it has long upheld a strong class divide. On the one hand, you have servers, bartenders, and hosts who run the “front of the house” in high-end restaurants. These jobs are often seen as a means to an end, a notorious way to help finance higher education and beginning careers in the arts, or—in some cases—a path to advance to a higher-profile career in the food world.\u003c/p>\n\u003cp>But for back of the house workers, as well as servers in lower-end establishments and most casual chain restaurants (think: the thousands of Red Lobsters and Olive Gardens around the country), that’s simply not the case. The \u003ca href=\"http://www.epi.org/publication/restaurant-workers/\" target=\"_blank\">median hourly wage\u003c/a> in the restaurant industry, including tips, is just $10, compared with $18 outside the restaurant industry. And just as they do in our nation at large, gender and race play an important role in this divide.\u003c/p>\n\u003cp>According to the \u003ca href=\"http://rocunited.org/\" target=\"_blank\">Restaurant Opportunity Center United\u003c/a>, an advocacy group working for restaurant workers around the nation, the median wage among white restaurant workers is almost \u003ca href=\"http://rocunited.org/research-resources/\">$4 per hour higher\u003c/a> than the median wage among restaurant workers of color, who are most likely to work the lowest-paying positions like cashiers. Similarly, ROC says female restaurant workers “suffer a 21.8 percent gender tax even after experience, education, and English language ability are accounted for.”\u003c/p>\n\u003cp>According to Saru Jayaraman, director of the \u003ca href=\"http://laborcenter.berkeley.edu/topic/food-labor-research-center/\" target=\"_blank\">Food Labor Research Center\u003c/a> at University of California at Berkeley and co-director of ROC United, “Seventy percent of tipped workers are women–women who suffer from deep poverty.” In fact, \u003ca href=\"http://www.epi.org/publication/restaurant-workers/\" target=\"_blank\">one in six\u003c/a> restaurant workers lives below the poverty line. Furthermore, the current approach to paying tipped workers tends to compound these problems. While a handful of states don’t differentiate between the minimum wage for tipped and non-tipped workers, many pay \u003ca href=\"http://www.dol.gov/whd/state/tipped.htm\" target=\"_blank\">them much less\u003c/a>, and the federal minimum has \u003ca href=\"http://rocunited.org/one-fair-wage/national/\" target=\"_blank\">been $2.13 since 1991\u003c/a>. (ROC United has been campaigning to \u003ca href=\"http://rocunited.org/one-fair-wage/\" target=\"_blank\">do away with tipped minimum wage entirely\u003c/a> in recent years.)\u003c/p>\n\u003cp>\u003cstrong>Can Fair Wage Pioneers Survive the Jump?\u003c/strong>\u003c/p>\n\u003cp>In light of this context, the move away from tipping appears all the more progressive. But the big question is: Will the restaurants working the hardest to level the playing field for their employees be able to survive the shift?\u003c/p>\n\u003cp>Take Sal Bednarz, owner of Actual Café and Victory Burger, a side-by-side café and casual grass-fed burger joint in Oakland.\u003c/p>\n\u003cp>“All of our employees are making more than they were, but it’s our kitchen workers who have benefited considerably,” he says. “They’re happy about that—we’re happy about that.”\u003c/p>\n\u003cp>Bednarz says he raised his prices by 9 percent to account for the wage increase, and after an initial uptick in business, he’s seen what he calls “softness in certain areas of business,” including the café’s counter lunch and breakfast service, which he says are more price sensitive than the table service they offer in the evenings. He hasn’t moved to a service charge because, he says, it just isn’t possible for counter service.\u003c/p>\n\u003cp>The Actual Café’s location hasn’t helped either. “We’re a block away from the city of Emeryville and a few blocks from Berkeley,” Bednarz. “The fact that our minimum wage went up before those other cities meant that some of our most price-sensitive customers probably went elsewhere for their lattés.” In the long term, he says, he trusts that those cities will follow suit with higher wages, but Bednarz is nervous about the long-term viability of his and other small businesses that run on extremely tight margins.\u003c/p>\n\u003cp>“I believe that the long-term macro-economic forces at work here will put more money into lots of workers’ pockets and wages will go up everywhere, creating more disposable income for folks. And retail prices will go up as a result of folks paying higher wages. So I’m not sure which will be the stronger force. We may end up paying our workers more, but they’ll have less spending power in the end. It’s too early to tell.”\u003c/p>\n\u003cp>\u003cstrong>Footing the Bill\u003c/strong>\u003c/p>\n\u003cp>In Seattle, several restaurants are responding to the city’s recent wage increases and getting out ahead of the coming ones, including casual seafood restaurant \u003ca href=\"http://www.king5.com/story/news/local/seattle/2015/03/30/ivars-seattle-15-minimum-wage/70681252/\" target=\"_blank\">Ivar’s\u003c/a> and the higher-end \u003ca href=\"https://eatseacreatures.com/\" target=\"_blank\">Sea Creatures\u003c/a> chain, which have both gotten rid of tips and brought all their workers up to at least $15 an hour.\u003c/p>\n\u003cp>The decision, says Sea Creatures co-owner Jeremy Price, came as a result of a combination of the rising city wages, the need to provide health insurance for their workers via the Affordable Care Act, and a philosophy that he describes as “not loving tips in the first place.”\u003c/p>\n\u003cp>All the Sea Creatures Restaurants now include a 20 percent service charge, added on to the bill. And there is no longer a space on the credit card slip for tips. Price says his customers have been quick to adapt to the change, and some even leave small cash tips when they are especially happy with the service. “We’ve had very few complaints,” he says.\u003c/p>\n\u003cp>As at Camino and other Bay Area restaurants, Price and his partners have set up a system that maintains server pay of $31 to $40 an hour (including both wages and a percentage of the service charge), and now servers are also eligible for health insurance and a 401K retirement plan.\u003c/p>\n\u003cp>“We didn’t have a ton of cooks making less than $15, but now they are all making at least that,” says Price, who estimates that, “If you aggregate all the cooks, it’s around a 7 percent increase.”\u003c/p>\n\u003cp>Price says the company has seen more people sign up for healthcare and 401K plans than expected. The service charge isn’t covering all of that cost, he says, so Price and his co-owners are taking pay cuts.\u003c/p>\n\u003cp>“Our goal is to attract and retain the best people,” he adds. “So long-term, this is going to be a win for us, and we’re willing to take a pay cut to get there.”\u003c/p>\n\u003cp>Indeed, ROC’s Jayaraman says the forward-thinking restaurants she’s encountered feel that investing in their workers pays off in the long term. There’s usually less turnover, she says, which saves costs. But that’s not all. “They also see more invested employees interested in protecting their employers’ bottom lines by reducing things like energy costs, and reducing food waste,” she says.\u003c/p>\n\u003cp>It also has the potential to prompt a deeper sense of commitment to the work in other ways. The goal at Sea Creatures, Price says, “is making service work a little more professional, creating a situation where people can treat it like a career.”\u003c/p>\n\u003cp>At a time when the bulk of American workers are seeing \u003ca href=\"http://www.epi.org/publication/charting-wage-stagnation/\" target=\"_blank\">wage stagnation\u003c/a>, increasing income inequality and many employers’ move \u003ca href=\"http://bigstory.ap.org/article/temporary-jobs-rise-todays-shifting-economy\" target=\"_blank\">toward less-formal contract and temporary employment\u003c/a>, this is no small deal.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Camino’s Hopewell sees the shift as an opportunity to approach the way her employees work in a whole new way–one that views the restaurant a little more like a single, living organism. “If there is a service issue, we address it as a restaurant concern. It is not just the server who gets a bad tip,” she says.\u003c/p>\n\n","blocks":[],"excerpt":"In cities like Oakland and Seattle, where the minimum wage is on the rise, restaurants are raising prices and rethinking tips as a way to level the playing field for workers. ","status":"publish","parent":0,"modified":1437602405,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":36,"wordCount":1973},"headData":{"title":"Goodbye Tipping, Hello Living Wage: The Changing Face of Progressive Restaurants | KQED","description":"In cities like Oakland and Seattle, where the minimum wage is on the rise, restaurants are raising prices and rethinking tips as a way to level the playing field for workers. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Goodbye Tipping, Hello Living Wage: The Changing Face of Progressive Restaurants","datePublished":"2015-07-22T21:50:02.000Z","dateModified":"2015-07-22T22:00:05.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"98365 http://ww2.kqed.org/bayareabites/?p=98365","disqusUrl":"https://ww2.kqed.org/bayareabites/2015/07/22/goodbye-tipping-hello-living-wage-the-changing-face-of-progressive-restaurants/","disqusTitle":"Goodbye Tipping, Hello Living Wage: The Changing Face of Progressive Restaurants","nprByline":"\u003ca href=\"http://civileats.com/author/tgreenaway/\">Twilight Greenaway\u003c/a>, \u003ca href=\"https://ww2.kqed.org/bayareabites/author/civileat/\">Civil Eats\u003c/a>","path":"/bayareabites/98365/goodbye-tipping-hello-living-wage-the-changing-face-of-progressive-restaurants","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>A new message appearing at the top of the menu at Camino, a high-end restaurant in Oakland, California, \u003ca href=\"http://www.caminorestaurant.com/no-tips\" target=\"_blank\">declares the end of an age-old American practice\u003c/a>. “No more tips!” it reads. “Our prices now include service so we can pay our employees a living wage.”\u003cspan id=\"more-22668\">\u003c/span>\u003c/p>\n\u003cp>The new prices—which have gone up 22 percent, and which now range from $29 to $37—and the restaurant’s corresponding tipping policy went into effect earlier this year, around the time the city’s minimum wage rose 36 percent to $12.25. And the two are related. While the new policy probably won’t put more into pockets of Camino’s decently paid servers, it will do something quietly revolutionary: it will help them offer a living wage to their (traditionally underpaid) cooks, dishwashers, and bussers.\u003c/p>\n\u003cp>Camino’s husband-and-wife co-owners Russell Moore and Allison Hopelain shared their philosophy on the restaurant’s website: “We have tried to instill a sense of teamwork at Camino—a place where each member of the team—waiters, bartenders, cooks, hosts and dishwashers—is all involved in serving our guests. And yet, we have been paying them as if we are running two separate businesses.” But the new policy changes all that.\u003c/p>\n\u003cp>A server working on a recent weekend seemed optimistic, although she has the least to lose from the new arrangement. Her new hourly wage is livable, she said, even if it means she never walks away with the occasional motherlode of tips in the high season. “If you’re willing to stick it out through the year, it makes up for the lack of big nights in the high season on slow shifts, during the less-crowded times of year,” she said.\u003c/p>\n\u003cp>“It means that all employees are paid based on their experience and have\u003cbr>\nroom to grow,” says Hopelain. “We offer any employee who is scheduled for five shifts a week health insurance and we do not cut shifts when we are slow.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>While a handful of \u003ca href=\"http://time.com/3890984/cities-highest-minimum-wage-map/\" target=\"_blank\">cities across the country\u003c/a> have plans to raise their minimum wages over the next five years, only a few have put the rubber to the road. Like Oakland and San Francisco, Seattle is taking a tiered approach to raising its minimum wage (i.e., different businesses are required to increase wages at varying rates, depending on their size) with the goal of hitting $15 an hour by 2020. While restaurants are inevitably passing some of these costs on to their customers, many are also taking the opportunity to develop progressive pay models that could begin to level the playing fields between the front and back of the house.\u003c/p>\n\u003cp>Raising food prices to replace tipping is only one of the approaches Oakland restaurants are taking to survive the wage hike and redistribute the wealth.\u003c/p>\n\u003cp>At several other restaurants around the city, such as Toast, Boca Nova \u003ca href=\"http://www.sfgate.com/restaurants/article/Minimum-wage-hike-hits-booming-Oakland-dining-6115583.php\">diners now pay\u003c/a> an added 15 to 20 percent \u003ca href=\"http://www.mercurynews.com/business/ci_27262359/service-charges-instead-tips-being-tried-out-at\" target=\"_blank\">service charge\u003c/a>. Although it doesn’t make a big difference in the final amount paid, service charges might be an easier pill for some customers to swallow than higher menu prices.\u003c/p>\n\u003cp>Dr. Michael Lynn, a professor of consumer behavior and marketing at the Cornell University School of Hotel Administration, says that his research shows that, “people don’t think about the tip as a part of restaurants’ expensiveness.” The same goes for a service charges, he adds. “So voluntary tipping and service charges are roughly the same in terms of perceptions of cost.”\u003c/p>\n\u003cp>In both cases the goal is to improve living conditions for the lowest paid workers in the chain—while paying their bills and retaining their most valuable employees.\u003c/p>\n\u003cp>\u003cstrong>An Industry Rife With Inequality\u003c/strong>\u003c/p>\n\u003cp>The American restaurant industry can be seen as a microcosm for the nation as a whole, in that it has long upheld a strong class divide. On the one hand, you have servers, bartenders, and hosts who run the “front of the house” in high-end restaurants. These jobs are often seen as a means to an end, a notorious way to help finance higher education and beginning careers in the arts, or—in some cases—a path to advance to a higher-profile career in the food world.\u003c/p>\n\u003cp>But for back of the house workers, as well as servers in lower-end establishments and most casual chain restaurants (think: the thousands of Red Lobsters and Olive Gardens around the country), that’s simply not the case. The \u003ca href=\"http://www.epi.org/publication/restaurant-workers/\" target=\"_blank\">median hourly wage\u003c/a> in the restaurant industry, including tips, is just $10, compared with $18 outside the restaurant industry. And just as they do in our nation at large, gender and race play an important role in this divide.\u003c/p>\n\u003cp>According to the \u003ca href=\"http://rocunited.org/\" target=\"_blank\">Restaurant Opportunity Center United\u003c/a>, an advocacy group working for restaurant workers around the nation, the median wage among white restaurant workers is almost \u003ca href=\"http://rocunited.org/research-resources/\">$4 per hour higher\u003c/a> than the median wage among restaurant workers of color, who are most likely to work the lowest-paying positions like cashiers. Similarly, ROC says female restaurant workers “suffer a 21.8 percent gender tax even after experience, education, and English language ability are accounted for.”\u003c/p>\n\u003cp>According to Saru Jayaraman, director of the \u003ca href=\"http://laborcenter.berkeley.edu/topic/food-labor-research-center/\" target=\"_blank\">Food Labor Research Center\u003c/a> at University of California at Berkeley and co-director of ROC United, “Seventy percent of tipped workers are women–women who suffer from deep poverty.” In fact, \u003ca href=\"http://www.epi.org/publication/restaurant-workers/\" target=\"_blank\">one in six\u003c/a> restaurant workers lives below the poverty line. Furthermore, the current approach to paying tipped workers tends to compound these problems. While a handful of states don’t differentiate between the minimum wage for tipped and non-tipped workers, many pay \u003ca href=\"http://www.dol.gov/whd/state/tipped.htm\" target=\"_blank\">them much less\u003c/a>, and the federal minimum has \u003ca href=\"http://rocunited.org/one-fair-wage/national/\" target=\"_blank\">been $2.13 since 1991\u003c/a>. (ROC United has been campaigning to \u003ca href=\"http://rocunited.org/one-fair-wage/\" target=\"_blank\">do away with tipped minimum wage entirely\u003c/a> in recent years.)\u003c/p>\n\u003cp>\u003cstrong>Can Fair Wage Pioneers Survive the Jump?\u003c/strong>\u003c/p>\n\u003cp>In light of this context, the move away from tipping appears all the more progressive. But the big question is: Will the restaurants working the hardest to level the playing field for their employees be able to survive the shift?\u003c/p>\n\u003cp>Take Sal Bednarz, owner of Actual Café and Victory Burger, a side-by-side café and casual grass-fed burger joint in Oakland.\u003c/p>\n\u003cp>“All of our employees are making more than they were, but it’s our kitchen workers who have benefited considerably,” he says. “They’re happy about that—we’re happy about that.”\u003c/p>\n\u003cp>Bednarz says he raised his prices by 9 percent to account for the wage increase, and after an initial uptick in business, he’s seen what he calls “softness in certain areas of business,” including the café’s counter lunch and breakfast service, which he says are more price sensitive than the table service they offer in the evenings. He hasn’t moved to a service charge because, he says, it just isn’t possible for counter service.\u003c/p>\n\u003cp>The Actual Café’s location hasn’t helped either. “We’re a block away from the city of Emeryville and a few blocks from Berkeley,” Bednarz. “The fact that our minimum wage went up before those other cities meant that some of our most price-sensitive customers probably went elsewhere for their lattés.” In the long term, he says, he trusts that those cities will follow suit with higher wages, but Bednarz is nervous about the long-term viability of his and other small businesses that run on extremely tight margins.\u003c/p>\n\u003cp>“I believe that the long-term macro-economic forces at work here will put more money into lots of workers’ pockets and wages will go up everywhere, creating more disposable income for folks. And retail prices will go up as a result of folks paying higher wages. So I’m not sure which will be the stronger force. We may end up paying our workers more, but they’ll have less spending power in the end. It’s too early to tell.”\u003c/p>\n\u003cp>\u003cstrong>Footing the Bill\u003c/strong>\u003c/p>\n\u003cp>In Seattle, several restaurants are responding to the city’s recent wage increases and getting out ahead of the coming ones, including casual seafood restaurant \u003ca href=\"http://www.king5.com/story/news/local/seattle/2015/03/30/ivars-seattle-15-minimum-wage/70681252/\" target=\"_blank\">Ivar’s\u003c/a> and the higher-end \u003ca href=\"https://eatseacreatures.com/\" target=\"_blank\">Sea Creatures\u003c/a> chain, which have both gotten rid of tips and brought all their workers up to at least $15 an hour.\u003c/p>\n\u003cp>The decision, says Sea Creatures co-owner Jeremy Price, came as a result of a combination of the rising city wages, the need to provide health insurance for their workers via the Affordable Care Act, and a philosophy that he describes as “not loving tips in the first place.”\u003c/p>\n\u003cp>All the Sea Creatures Restaurants now include a 20 percent service charge, added on to the bill. And there is no longer a space on the credit card slip for tips. Price says his customers have been quick to adapt to the change, and some even leave small cash tips when they are especially happy with the service. “We’ve had very few complaints,” he says.\u003c/p>\n\u003cp>As at Camino and other Bay Area restaurants, Price and his partners have set up a system that maintains server pay of $31 to $40 an hour (including both wages and a percentage of the service charge), and now servers are also eligible for health insurance and a 401K retirement plan.\u003c/p>\n\u003cp>“We didn’t have a ton of cooks making less than $15, but now they are all making at least that,” says Price, who estimates that, “If you aggregate all the cooks, it’s around a 7 percent increase.”\u003c/p>\n\u003cp>Price says the company has seen more people sign up for healthcare and 401K plans than expected. The service charge isn’t covering all of that cost, he says, so Price and his co-owners are taking pay cuts.\u003c/p>\n\u003cp>“Our goal is to attract and retain the best people,” he adds. “So long-term, this is going to be a win for us, and we’re willing to take a pay cut to get there.”\u003c/p>\n\u003cp>Indeed, ROC’s Jayaraman says the forward-thinking restaurants she’s encountered feel that investing in their workers pays off in the long term. There’s usually less turnover, she says, which saves costs. But that’s not all. “They also see more invested employees interested in protecting their employers’ bottom lines by reducing things like energy costs, and reducing food waste,” she says.\u003c/p>\n\u003cp>It also has the potential to prompt a deeper sense of commitment to the work in other ways. The goal at Sea Creatures, Price says, “is making service work a little more professional, creating a situation where people can treat it like a career.”\u003c/p>\n\u003cp>At a time when the bulk of American workers are seeing \u003ca href=\"http://www.epi.org/publication/charting-wage-stagnation/\" target=\"_blank\">wage stagnation\u003c/a>, increasing income inequality and many employers’ move \u003ca href=\"http://bigstory.ap.org/article/temporary-jobs-rise-todays-shifting-economy\" target=\"_blank\">toward less-formal contract and temporary employment\u003c/a>, this is no small deal.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Camino’s Hopewell sees the shift as an opportunity to approach the way her employees work in a whole new way–one that views the restaurant a little more like a single, living organism. “If there is a service issue, we address it as a restaurant concern. It is not just the server who gets a bad tip,” she says.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/98365/goodbye-tipping-hello-living-wage-the-changing-face-of-progressive-restaurants","authors":["byline_bayareabites_98365"],"categories":["bayareabites_109","bayareabites_13718","bayareabites_8770","bayareabites_1962","bayareabites_4084","bayareabites_1146","bayareabites_1875","bayareabites_366","bayareabites_1807"],"tags":["bayareabites_11505","bayareabites_14183","bayareabites_11427","bayareabites_11429"],"featImg":"bayareabites_98368","label":"bayareabites"},"bayareabites_96409":{"type":"posts","id":"bayareabites_96409","meta":{"index":"posts_1591205157","site":"bayareabites","id":"96409","score":null,"sort":[1432742436000]},"guestAuthors":[],"slug":"mark-bittman-talks-about-food-and-california-matters","title":"Mark Bittman Talks About Food and 'California Matters'","publishDate":1432742436,"format":"standard","headTitle":"Bay Area Bites | KQED Food","labelTerm":{"site":"bayareabites"},"content":"\u003cp>Yesterday (May 26, 2015), KQED \u003cem>Forum's\u003c/em> Michael Krasny talked with \u003cem>New York Times\u003c/em> columnist Mark Bittman, who is currently a visiting fellow at U.C. Berkeley's Food Institute. The \u003cem>How to Cook Everything\u003c/em> author has spent the last few months traveling around the state and talking to people in the U.C. system for a series of videos on California's changing agriculture and food production systems. \u003c/p>\n\u003cp>Bittman's \u003cem>California Matters\u003c/em> series launches June 8, 2015. Episodes cover a wide range of topics including wild edibles, the history of Chinese-American food, labor justice in the restaurant industry and how the use of pesticides in the Salinas fields affects neo-natal health.\u003c/p>\n\u003cp>Highlights from the conversation follow: \u003c/p>\n\u003ch4>On the Bay Area\u003c/h4>\n\u003cp>\"You can get the best ingredients you can get anywhere, which is really quite a thing to say -- the most beautiful produce and a very long growing season and a shocking number of things in fine shape in the middle of the winter and a drought. And a two-hour drive to some of the most egregious industrial agriculture on the face of the earth. It's a really mixed bag and total fun as a journalist because you can talk about how wonderful the Meyer lemons are or you can talk about mega dairy farms that probably shouldn't exist. And you have everything in between here.\" \u003c/p>\n\u003cp>https://youtu.be/4n1PvH4B1Vo\u003c/p>\n\u003ch4>On food labeling\u003c/h4>\n\u003cp>\"The only label you can put on produce that matters right now is whether it's organic or not... You know one of the first things I did when I started my opinion column was my dream food label, which was a complete fantasy. You know, I've said I would like to see labeling that lets us know how the workers who produced that food were treated. And that certainly is an issue with produce, where you have, in California alone, something like a million migrant workers who work seasonally. Who work mostly for nine or ten dollars an hour and who are living below the poverty level. Without those people, you don't get to eat fruits and vegetables.\"\u003c/p>\n\u003ch4>On the question of free will and the \"nanny state\"\u003c/h4>\n\u003cp>\"The market is not concerned with public health, and I think we see that all the time. The market is not concerned whether workers are treated well. We see that all the time. To govern means to steer. We need guidance in order to live good lives and in fact many people need protection from what I see as the ravages of big business. Who is going to provide that protection? That has nothing to do with free will. My free will, if I'm working as a farm laborer and getting nine dollars an hour, my free will is not going to get me health care or eighteen dollars an hour. My free will has nothing to do with that. I need protection... \u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>I don't know what nanny state means. I want government to protect public health. Nanny state means building roads. Nanny state means building sewers. There are public health challenges; there are infrastructure challenges that we rely on the state to do. This is protecting us from something that's harmful.\" \u003c/p>\n\u003ch4>On the minimum wage\u003c/h4>\n\u003cp>\"It should be defined as something that provides some kind of standard of living that we would all be comfortable with. I don't know what that is. It's hard to define. When you see ... that you would need to be making the equivalent of forty dollars an hour to rent a two-bedroom apartment in San Francisco, that says to me that San Francisco is hostile to people who make less than forty dollars. The point is, is that the kind of city you want, where everybody makes at least fifty dollars an hour? Cause if it is, that's what you're headed towards. I mean, where's your labor force? San Leandro? OK, but how do they get here? And so on.\"\u003c/p>\n\u003cp>[Continuing later in the show when asked about how minimum wage hikes affect small businesses.] \"Look. If you are relying on starvation wages to stay in business, maybe you're in the wrong business. I mean, that's a very cruel thing to say, but it's not as cruel as paying people starvation wages. Is your business viable if you're relying on paying people at a rate that does not allow them to buy food?\" \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cb>Listen to the full May 26, 2015 interview on KQED's \u003cem>Forum\u003c/em>:\u003c/b>\u003cbr>\nhttp://www.kqed.org/.stream/anon/radio/forum/2015/05/20150526bforum.mp3\u003c/p>\n\n","blocks":[],"excerpt":"Highlights from Mark Bittman's May 26, 2015 conversation with Forum's Michael Krasny.","status":"publish","parent":0,"modified":1481593220,"stats":{"hasAudio":true,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":12,"wordCount":777},"headData":{"title":"Mark Bittman Talks About Food and 'California Matters' | KQED","description":"Highlights from Mark Bittman's May 26, 2015 conversation with Forum's Michael Krasny.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Mark Bittman Talks About Food and 'California Matters'","datePublished":"2015-05-27T16:00:36.000Z","dateModified":"2016-12-13T01:40:20.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"96409 http://ww2.kqed.org/bayareabites/?p=96409","disqusUrl":"https://ww2.kqed.org/bayareabites/2015/05/27/mark-bittman-talks-about-food-and-california-matters/","disqusTitle":"Mark Bittman Talks About Food and 'California Matters'","path":"/bayareabites/96409/mark-bittman-talks-about-food-and-california-matters","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Yesterday (May 26, 2015), KQED \u003cem>Forum's\u003c/em> Michael Krasny talked with \u003cem>New York Times\u003c/em> columnist Mark Bittman, who is currently a visiting fellow at U.C. Berkeley's Food Institute. The \u003cem>How to Cook Everything\u003c/em> author has spent the last few months traveling around the state and talking to people in the U.C. system for a series of videos on California's changing agriculture and food production systems. \u003c/p>\n\u003cp>Bittman's \u003cem>California Matters\u003c/em> series launches June 8, 2015. Episodes cover a wide range of topics including wild edibles, the history of Chinese-American food, labor justice in the restaurant industry and how the use of pesticides in the Salinas fields affects neo-natal health.\u003c/p>\n\u003cp>Highlights from the conversation follow: \u003c/p>\n\u003ch4>On the Bay Area\u003c/h4>\n\u003cp>\"You can get the best ingredients you can get anywhere, which is really quite a thing to say -- the most beautiful produce and a very long growing season and a shocking number of things in fine shape in the middle of the winter and a drought. And a two-hour drive to some of the most egregious industrial agriculture on the face of the earth. It's a really mixed bag and total fun as a journalist because you can talk about how wonderful the Meyer lemons are or you can talk about mega dairy farms that probably shouldn't exist. And you have everything in between here.\" \u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/4n1PvH4B1Vo'\n title='//www.youtube.com/embed/4n1PvH4B1Vo'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003ch4>On food labeling\u003c/h4>\n\u003cp>\"The only label you can put on produce that matters right now is whether it's organic or not... You know one of the first things I did when I started my opinion column was my dream food label, which was a complete fantasy. You know, I've said I would like to see labeling that lets us know how the workers who produced that food were treated. And that certainly is an issue with produce, where you have, in California alone, something like a million migrant workers who work seasonally. Who work mostly for nine or ten dollars an hour and who are living below the poverty level. Without those people, you don't get to eat fruits and vegetables.\"\u003c/p>\n\u003ch4>On the question of free will and the \"nanny state\"\u003c/h4>\n\u003cp>\"The market is not concerned with public health, and I think we see that all the time. The market is not concerned whether workers are treated well. We see that all the time. To govern means to steer. We need guidance in order to live good lives and in fact many people need protection from what I see as the ravages of big business. Who is going to provide that protection? That has nothing to do with free will. My free will, if I'm working as a farm laborer and getting nine dollars an hour, my free will is not going to get me health care or eighteen dollars an hour. My free will has nothing to do with that. I need protection... \u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>I don't know what nanny state means. I want government to protect public health. Nanny state means building roads. Nanny state means building sewers. There are public health challenges; there are infrastructure challenges that we rely on the state to do. This is protecting us from something that's harmful.\" \u003c/p>\n\u003ch4>On the minimum wage\u003c/h4>\n\u003cp>\"It should be defined as something that provides some kind of standard of living that we would all be comfortable with. I don't know what that is. It's hard to define. When you see ... that you would need to be making the equivalent of forty dollars an hour to rent a two-bedroom apartment in San Francisco, that says to me that San Francisco is hostile to people who make less than forty dollars. The point is, is that the kind of city you want, where everybody makes at least fifty dollars an hour? Cause if it is, that's what you're headed towards. I mean, where's your labor force? San Leandro? OK, but how do they get here? And so on.\"\u003c/p>\n\u003cp>[Continuing later in the show when asked about how minimum wage hikes affect small businesses.] \"Look. If you are relying on starvation wages to stay in business, maybe you're in the wrong business. I mean, that's a very cruel thing to say, but it's not as cruel as paying people starvation wages. Is your business viable if you're relying on paying people at a rate that does not allow them to buy food?\" \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cb>Listen to the full May 26, 2015 interview on KQED's \u003cem>Forum\u003c/em>:\u003c/b>\u003cbr>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"audioLink","attributes":{"named":{"src":"http://www.kqed.org/.stream/anon/radio/forum/2015/05/20150526bforum.mp3"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/96409/mark-bittman-talks-about-food-and-california-matters","authors":["8"],"categories":["bayareabites_109","bayareabites_1962","bayareabites_2035"],"tags":["bayareabites_14513","bayareabites_12131","bayareabites_676","bayareabites_11505","bayareabites_9649"],"featImg":"bayareabites_96422","label":"bayareabites"},"bayareabites_96350":{"type":"posts","id":"bayareabites_96350","meta":{"index":"posts_1591205157","site":"bayareabites","id":"96350","score":null,"sort":[1432479647000]},"guestAuthors":[],"slug":"east-bay-restaurants-adapt-to-new-minimum-wage","title":"East Bay Restaurants Adapt to New Minimum Wage","publishDate":1432479647,"format":"standard","headTitle":"Bay Area Bites | KQED Food","labelTerm":{"site":"bayareabites"},"content":"\u003cp>On March 2, the city of Oakland raised its minimum wage by 36%. At $12.25 per hour, the new wage is the highest in the country — for now. San Francisco matched this wage on May 1, and Emeryville will leapfrog both cities in July.\u003c/p>\n\u003cp>The wage increase was voted into law last November as a part of Measure FF. Over 80% of Oakland residents supported the measure. And while all Oakland businesses are now required to abide by the new wage, conversations about its benefits and repercussions have been most active in the restaurant industry.\u003c/p>\n\u003cp>Restaurants have notoriously small operational budget margins, and are, according to \u003ca href=\"http://www.berkeleyside.com/tag/saru-jayaraman/\" target=\"_blank\">Saru Jayaraman\u003c/a>, the co-director of \u003ca href=\"http://www.berkeleyside.com/tag/restaurant-opportunities-centers-united/\" target=\"_blank\">Restaurant Opportunity Centers United\u003c/a> (ROC-United) and director of the Food Labor Research Center at UC Berkeley, one of the largest employers of low-wage workers in the United States. Jayaraman reports that seven out of the ten lowest paying jobs in the country are restaurant jobs.\u003c/p>\n\u003cfigure id=\"attachment_96353\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/Frances-with-Saru-by-Pete-Rosos-720x480.jpg\" alt=\"Saru Jayaraman, seen here speaking with Berkeleyside’s Frances Dinkelspiel at Uncharted 2014, says in the long run wage increases in the restaurant field will be better for business.\" width=\"720\" height=\"480\" class=\"size-full wp-image-96353\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/Frances-with-Saru-by-Pete-Rosos-720x480.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/Frances-with-Saru-by-Pete-Rosos-720x480-400x267.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Saru Jayaraman, seen here speaking with Berkeleyside’s Frances Dinkelspiel at Uncharted 2014, says in the long run wage increases in the restaurant field will be better for business. \u003ccite>(Pete Rosos)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>California does, however, have some protections for restaurant workers. Service staff is required to make at least the state minimum wage; they are not permitted to be paid a “tipped minimum” of $2.13 per hour as they are in other states. Still, the state’s minimum wage of $9 per hour doesn’t go very far in the Bay Area’s booming economy. (Indeed, according to \u003ca href=\"http://livingwage.mit.edu/places/0600153000\" target=\"_blank\">MIT’s Living Wage Calculator\u003c/a>, the minimum wage needed to support a single adult in Oakland is over $11; one needs to make over double that number to support even a small family.)\u003c/p>\n\u003cp>“There’s been an ongoing problem in the restaurant industry where many of our employees have trouble paying the bills. It is bad for the industry and bad for the community,” said \u003ca href=\"http://www.berkeleyside.com/tag/jay-porter/\" target=\"_blank\">Jay Porter\u003c/a>, the owner of \u003ca href=\"http://www.berkeleyside.com/tag/the-half-orange/\" target=\"_blank\">The Half Orange\u003c/a> in Fruitvale and upcoming \u003ca href=\"http://www.berkeleyside.com/tag/salsipuedes/\" target=\"_blank\">Salsipuedes\u003c/a> in North Oakland. “When one of your most significant industries as a whole employs people at a sub-living wage, that’s not good for the community. That’s money that’s not circulating in the economy. It also means that there’s a really high turnover. It means that a lot of people are having to work 70 to 80 hours a week to pay the bills.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Measure FF was an attempt to change that problem. The measure not only set Oakland’s minimum wage at $12.25 per hour, but it also added mandatory paid sick leave and provided means for retaliation should employers not follow the new rules. Oakland’s new wage is now also tied to the Consumer Price Index, and it will be allowed to rise each year on January 1.\u003c/p>\n\u003cp>Restaurant owners have adapted to the wage increase in various ways. Most, like Porter, have simply increased prices to account for the higher labor costs. Other restaurants, such as \u003ca href=\"http://www.berkeleyside.com/tag/homestead/\" target=\"_blank\">Homestead,\u003c/a> \u003ca href=\"http://www.berkeleyside.com/tag/dopo/\" target=\"_blank\">Dopo\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/camino/\" target=\"_blank\">Camino\u003c/a> in Oakland, and \u003ca href=\"http://www.berkeleyside.com/tag/comal/\" target=\"_blank\">Comal\u003c/a> in Berkeley, have used this wage increase to re-format their entire wage structure. All four have eliminated tipping and have incorporated the average tip amount (around 20% of the total bill) to the line item charge for each dish on their menus. Still others, like \u003ca href=\"http://www.berkeleyside.com/tag/bocanova/\" target=\"_blank\">Bocanova\u003c/a> in Jack London Square, have added a mandatory service charge to their bill.\u003c/p>\n\u003cp>These adaptations are part of a larger conversation. Last month saw \u003ca href=\"http://www.berkeleyside.com/tag/fight-for-15/\" target=\"_blank\">local and national protests\u003c/a> for a $15 minimum wage. Measure FF has prompted many restaurants to reconsider tipping and fair pay between employees. Small, non-English speaking food businesses are closing, or considering it. Emeryville is considering an historically large wage bump — from $9 per hour to over $14. And everyone, especially restaurant workers, are reconsidering what, exactly, a fair wage means.\u003c/p>\n\u003cfigure id=\"attachment_96354\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/JayPorter-KatieMayfield.jpg\" alt=\"Jay Porter and Katie Mayfield own The Half Orange and forthcoming Salsipuedes. Porter has been an advocate for disrupting the traditional tipping systems in restaurants. \" width=\"720\" height=\"503\" class=\"size-full wp-image-96354\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/JayPorter-KatieMayfield.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/JayPorter-KatieMayfield-400x279.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Jay Porter and Katie Mayfield own The Half Orange and forthcoming Salsipuedes. Porter has been an advocate for disrupting the traditional tipping systems in restaurants. \u003ccite>(Jay Porter)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Increases better for business?\u003c/h4>\n\u003cp>UC Berkeley’s \u003ca href=\"http://www.berkeleyside.com/tag/institute-for-research-on-labor-and-employment/\" target=\"_blank\">Institute for Research on Labor and Employment\u003c/a> (IRLE) prepared a policy brief on the Oakland measure last June. The research suggested that restaurants and retail businesses would likely be most affected by the increase, but restaurants would only need to raise their prices by 2.5%. Authors Michael Reich, Ken Jacobs, Annette Berndardt and Ian Perry suggested that reduced employee turnover costs and improved work performance would make up for increased labor costs.\u003c/p>\n\u003cp>However, most of the restaurant owners we have spoken to have all raised their prices much more than 2.5%. Chris Hillyard of \u003ca href=\"http://www.berkeleyside.com/tag/farleys-east/\" target=\"_blank\">Farley’s\u003c/a> coffee shops in Uptown and in Emeryville raised his prices between 5% and 15%, depending on the item. \u003ca href=\"http://www.berkeleyside.com/tag/sal-bednarz/\" target=\"_blank\">Sal Bednarz\u003c/a> of \u003ca href=\"http://www.berkeleyside.com/tag/actual-cafe/\" target=\"_blank\">Actual Café\u003c/a> and \u003ca href=\"http://www.berkeleyside.com/tag/victory-burger/\" target=\"_blank\">Victory Burger\u003c/a> gave most of his items at 9% bump. Porter’s prices went up around 15%.\u003c/p>\n\u003cp>“It is clear that the researchers missed some of the important parts of the picture. They talked about a restaurant price increase of 3%. That still may be the average price increase, but for the small restaurants that I’m talking to, none of us can do it for 3%, none of us,” said Bednarz. “A lot of us are doing double digit price increases, much more.”\u003c/p>\n\u003cp>Hillyard noted labor costs are more complicated than the direct wage cost. “There are also sick days. Plus workers compensation goes up because your payroll costs have gone up,” he said. Indeed, the IRLE report didn’t include the increased costs of paid sick leave. However, Reich noted in an email that Oakland area restaurant prices have been increasing around 2.4% per year, which makes these bumps part of a general trend.\u003c/p>\n\u003cp>Despite these price increases, most Oakland restaurants are still doing what they do best.\u003c/p>\n\u003cp>“Our revenue is up a bit, and our customer traffic is close to what it was before we made the changes. We’ve had a lot of customers who have noticed the price increases. Some already understood why [they were] going up, some didn’t,” said Bednarz. “My crew was well equipped to educate them and had good conversations across the counter.”\u003c/p>\n\u003cp>However, Bednarz did report that his morning coffee business has been a bit slower than usual. “Who knows what that is. It could be something like our customers are driving a different direction to get to work or that schools in the neighborhood have different hours this week. In a few weeks it may come back, but it may not.” Porter and Hillyard also report fairly consistent business.\u003c/p>\n\u003cp>Jayaraman says that in the long run, the wage increase will be better for business. “The economy is going to do better. I think we’re going to see better restaurants, better service, better food. I think we’re going to see actually faster job growth. That’s what we’ve seen everywhere else every time the wage has gone up,” she said.\u003c/p>\n\u003cp>Another IRLE overview report on local minimum wage laws said that wage increases do increase the spending power of employees and that they do typically spend that extra money. The authors did note, however, that research still needs to be done to estimate the economic stimulus created by this new spending power.\u003c/p>\n\u003cp>Perhaps just as important as spending power is employee morale. “You’re going to have healthier workers because they have paid sick days. You’re going to have happier workers because they’re better paid. You’re going to have better service. It’s going to be good for everybody,” said Jayaraman.\u003c/p>\n\u003cp>However, as Bednarz explained, these changes will not happen overnight. His employees received their first increased pay check three weeks after restaurants instated higher prices. “That’s a number of weeks of lag,” he said. “The folks who are coming to a place like mine in the morning are coming up for their morning coffee, and they’re often daily customers. A small increase in what they’re paying, that increases five times. It accumulates. I’m not saying that these people don’t care about what we’re doing, but they may not be able to afford to care.”\u003c/p>\n\u003cfigure id=\"attachment_96355\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/IMG_2339.jpg\" alt=\"Sandwiches at Victory Burger have gone up in price by around 9% after the wage increase went into effect.\" width=\"720\" height=\"540\" class=\"size-full wp-image-96355\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/IMG_2339.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/IMG_2339-400x300.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Sandwiches at Victory Burger have gone up in price by around 9% after the wage increase went into effect. \u003ccite>(Emilie Raguso)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Front of house or back of the house? Unequal pay\u003c/h4>\n\u003cp>Historically, there have been three different wage structures in place in restaurants. Employees in the “back of the house” — cooks, dishwashers, bussers — make a single hourly wage without tips. Those in the “front of the house” — servers and hosts — make an hourly minimum plus tips on their bills. Managers usually get a salary.\u003c/p>\n\u003cp>Because California doesn’t allow for a tipped minimum, front-of-house workers typically take home far more income than the cooks and dishwashers in the back of the house — even if the back-of-the-house workers are making more than the minimum wage. This means that, even if all employees get a wage increase, the front of house still stands to bring home substantially more income. If prices increase, tips will increase as well, further increasing take-home pay. (Some restaurant owners we spoke to, like Porter, gave everyone a raise, while others, like Bednarz, raised wages only for those making below $12.25, with a few exceptions.)\u003c/p>\n\u003cp>At a high-end restaurant where diners are tipping 20% on a $100 tab, the profits for servers can be very high. “I understand that for servers in places that they’re still getting tipped, they’re making a killing,” said Tim Veatch, a cook at Camino.\u003c/p>\n\u003cp>It is a fairly common practice for restaurants to “pool” tips at the end of service and divide up the total among employees. Typically under this system, servers take home a higher proportion of the tip, while back-of-the-house employees get a smaller percentage.\u003c/p>\n\u003cp>California’s labor code makes this practice a little more complicated. It does allow for tip pooling, but the original legislation says that tips must go to those who are in a “direct line of service.” However, in 2009, the California Supreme Court ruled on several cases that challenged the wording of the legislation. In Etheridge v. Reins International, the court held that all employees in the “chain of service” are eligible to receive a share of tips, which included dishwashers and other members of the kitchen staff. In Budrow v. Dave & Busters, the court expanded that idea to say that the decision regarding who can participate in the tip pool can be “based on a reasonable assessment of the patron’s intentions.” The differences between a “direct line of” and “chain of” service aren’t exactly clear-cut, and the definition of a “reasonable assessment” is open to legal interpretation.\u003c/p>\n\u003cp>Each restaurant owner that we spoke to said that they try to balance wages between the front and back of the house as best as possible, but have been wary of violating the law. When Hillyard and his wife and co-owner Amy Hillyard opened Farley’s, the pair intentionally gave their cooks the job of delivering food to customers so that they could legally participate in the tip pool. Bednarz says that he has always pooled tips and has suggested raising the tip share between employees, but the final say came down to the employees.\u003c/p>\n\u003cp>“There’s a legal minefield that we’re trying to maneuver here as we try to do right. And there are lots of ways that we can do wrong,” said Bednarz. “My interest is in making sure that the staff also feels like it is fair. None of the front of house crew, who have to give up a little bit more of what they take in, is unhappy to give a little bit more of it to the kitchen.”\u003c/p>\n\u003cp>Part of the reason for their willingness, Bednarz added, is because tip amounts have gone up along with prices. “Prices go up, tips go up, a lot more of the crew get to share more deeply in the pool of tips, and effectively everybody gets a raise,” he said.\u003c/p>\n\u003cp>When California’s state minimum wage rose from $8 per hour to $9 in July 2014, Camino owners \u003ca href=\"http://www.berkeleyside.com/tag/russell-moore/\" target=\"_blank\">Russell Moore\u003c/a> and \u003ca href=\"http://www.berkeleyside.com/tag/allison-hopelain/\" target=\"_blank\">Allison Hopelain\u003c/a> made attempts to encourage the service staff to distribute tips. Unlike Bendarz’s employees, they chose not to.\u003c/p>\n\u003cp>This was around the time that Veatch started working at the restaurant. “Russ and Allison had made a few attempts to allow the service staff to give us larger portions of the tipped money that was coming in, to cut the kitchen in,” he said. “But the law dictates that you, as the manager of a restaurant, are not allowed to distribute a server’s tips. They have to do that for themselves.”\u003c/p>\n\u003cp>Veatch believes this system to be entirely inequitable. “The real issue is that the money from tips is part of the kitchen’s doing. That imbalance has always bothered me, as someone who puts the hours in and who puts the passion in. Then there are other people who can walk in, serve your passion and walk out with two times the amount of money that you made in half the time,” he said.\u003c/p>\n\u003cp>This fact was part of Moore’s impetus for completely re-formatting his pay structure. “I was tired of the semi-legal prospect of trying to get the waiters to tip out more to the back of the house or trying to alter the tip pool,” he said. “We all know it’s sort of a grey area.” As of January 31, Camino no longer accepts tips.\u003c/p>\n\u003cfigure id=\"attachment_96356\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/Russell-Moore-720x539.jpg\" alt=\"Russell Moore, co-owner of Camino: “Why don’t we just charge people what it costs to eat at our restaurant?” \" width=\"720\" height=\"539\" class=\"size-full wp-image-96356\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/Russell-Moore-720x539.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/Russell-Moore-720x539-400x299.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Russell Moore, co-owner of Camino: “Why don’t we just charge people what it costs to eat at our restaurant?” \u003ccite>(Courtesy Russell Moore)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>The not-so-simple question of tipping\u003c/h4>\n\u003cp>Moore and Hopelain had always wanted to eliminate tips. Before opening Camino, Moore worked at \u003ca href=\"http://www.berkeleyside.com/tag/chez-panisse/\" target=\"_blank\">Chez Panisse\u003c/a>, where there is a 17% service charge on all bills. He and Hopelain wanted to take this principle one step further and incorporate that charge into the cost of the dishes. But, he said, “we kind of chickened out. We were going to be in this weird stretch of Oakland and back then there weren’t many restaurants opening there.” The pair instead instated a regular tipping system with a tip pool. They kept all front of house employees at the same wage, where they all shared tasks and tips.\u003c/p>\n\u003cp>However, Moore said, “As minimum wage has been going up, we’ve thought more and more about how we could change it and what we could do.” They entertained the idea of adding a service charge, as at Chez Panisse, but changed their mind once they read the wording of Measure FF. According to the measure, service charges “shall be paid over in their entirety to the Hospitality Workers performing services for the customers.” The measure also stipulates that supervisors and owners could not take in any of the service charges. Moore was concerned that he wouldn’t legally be able to divide a service charge with the back of the house workers.\u003c/p>\n\u003cp>“It didn’t seem like we could cleanly have a service charge and cleanly decide where all that money goes,” he said. “So we thought, ‘Why don’t we just charge people what it costs to eat at our restaurant?’”\u003c/p>\n\u003cp>Each of Camino’s menus advertises its tip-less system in bold type. And the dishes themselves are significantly more expensive — more than 20% — than they were before the change. The increased item price goes directly to paying employees’ higher wages.\u003c/p>\n\u003cp>So far, says Moore, there hasn’t been any backlash from customers.\u003c/p>\n\u003cp>Host Hannah Rice is often the first person to explain the new system to guests. “I thought people wouldn’t be so accepting. But everyone has been really excited about it,” she said.\u003c/p>\n\u003cp>Veatch has been in to eat in the restaurant on his days off and he says that his friends find it exciting. “They’re like, ‘Oh there’s no tip!’ There’s confusion as to what you’re supposed to do, but I talk them through it,” he said. “I think everyone has really accepted it as a beneficial form of dining. You just get to sign your check and leave.”\u003c/p>\n\u003cp>Porter says that models like Camino’s have been met with criticism from labor activists because “they say it removes money from the pockets of servers and that is against the intent of Measure FF.”\u003c/p>\n\u003cp>However, notes Jayaraman, “The impetus to move more and more towards living wages paid by the employer as opposed to by consumer tips is a good thing.”\u003c/p>\n\u003cp>Moore admits that he did lose servers over the wage change. “For some of our more experienced servers, this just gave them the impetus to do that other career that they wanted to do, start that business, go back to school, or do something else. They didn’t leave with ill will,” he said. “A couple went to other restaurants to make more money. But everyone gave lots of notice and we had plenty of time and at the end of the day, we have a really great staff, front and back.”\u003c/p>\n\u003cp>He has tried to combat employee turnover by increasing hours and reformatting the wage structure to encourage employees to work for promotion. Importantly, Moore says that the current wage structure incentivizes his servers to work five days a week, which qualifies them for health insurance.\u003c/p>\n\u003cp>Servers’ wages are also more predictable, he said. “I’ve always hated that feeling that servers are guns for hire. Like, ‘Oh it’s going to be a slow night, let’s cut them. Things are dying down, let’s send them home,’” he said. “Our selling points to servers were, ‘Yes, on a good Saturday night you’ll make less money. But on a slow Saturday brunch you’re going to make more.’” On those slow days, Moore gives the front of house staff other tasks to do, such as helping with kitchen prep work, in order for them to keep their hours up.\u003c/p>\n\u003cp>Moore has also built in a growth track for his front of house employees. Typically, servers do not want to get promoted to a management position, he said, because that salary pays less than the server was making in tips. Plus, in his old system, all servers were paid the same. Now he gives servers with more experience a higher starting wage. “There’s incentive for the new server to learn more and become a better server and manager,” he said. “Like any other job in the world, you can get a raise, or you can not get a raise. We can manage people like you can manage people in any other line of work.”\u003c/p>\n\u003cp>Rice was hired before the change, and she decided to stay on, despite losing her tips. “Overall I probably make less, but I’m OK with that. I think it is the right thing to do,” she said. “The minimum wage should be helping everyone, and with tips it is only really helping the front of the house. The dishwashers and the bussers get left behind. Everyone works together, so for one person to be making more is unfair.” Rice added that she would be happy to work at another restaurant with a similar tipless pay structure.\u003c/p>\n\u003cp>For now, though, she hopes to continue to work and move up the ranks at the restaurant. “They’re providing a chance for everyone to move around and be familiar with other parts of the restaurant,” she said. “We get to see different sides of the restaurant and experience a different position.”\u003c/p>\n\u003cp>On the other hand, Cabril Barnes, a manager at both Actual Café and Victory Burger, says that he would be one of those servers to leave if tips had been eliminated at his restaurant. “Tips are definitely an incentive. I personally would not want to work in a place without tips and work just for a flat base rate,” he said.\u003c/p>\n\u003cp>Despite the staffing changes, Moore and his employees all report that the restaurant’s service has improved. “We have a better sense of teamwork now,” said Rice. “Guests are looking closer at our service and they’re applauding us. Everyone is noticing positive effects.”\u003c/p>\n\u003cp>Porter has long been an advocate for eliminating tips. He famously did so at his San Diego restaurant, The Linkery. “The idea that servers are motivated by tips is an enormous fallacy that has been totally disproven,” he said. “Great servers, as long as they are well-compensated, are going to do great work without tipping incentives. It turns out that that is pretty much how every other American works. When you’re fairly compensated, you’re going to do great work out of your own personal pride and the joy of doing great work.”\u003c/p>\n\u003cp>Indeed, Moore reports that his servers feel just like that. “The servers said something curious the other day at staff meal. They said, ‘There’s something about this which makes everything feel more professional. It makes it feel less like I’m putting on an act for a customer in the hopes that they might tip me. It’s more like I have an incentive to just do a really good job.’”\u003c/p>\n\u003cp>Bednarz agrees. “You can argue all day long about how tips deviate based on the level of service or product that we give — they don’t. On a crappy day, our tips are just as good as on a good day. We know when we’re screwing up on the floor and when we’re kicking ass. And tips are mostly the same,” he said.\u003c/p>\n\u003cp>Not surprisingly, Moore’s back of the house team is pleased with the changes. “The cooks got raises and they’re excited that we’ve taken an interest in making it so they can keep living here. Our cooking crew has always been fairly solid, but now it’s really solid,” said Moore. “We pay more than almost anyone now. It’s still not enough, but it’s getting there.”\u003c/p>\n\u003cp>Added Veatch, “I’ve been in the industry for ten years and I’ve never worked at a restaurant that was more respectful for my hours, did more to pay me for the moments that I’m in there, and cared more for me from a quality-of-life perspective and a cost of living perspective than Camino. I would never go back to a restaurant with a traditional tipping system.”\u003c/p>\n\u003cp>Moore hopes that more restaurants will see Camino’s success and mimic their payment approach. “What I would love is for the restaurants that are really busy and popular, that make more money, for them to make the change,” he said. “But I think they’re nervous about losing their floor staff.”\u003c/p>\n\u003cp>“It’s going to be a really big change, and there’s going to be a big transition,” Moore continued. “I think the ‘no tipping’ model might be the model because I think customers are going to get tired of weird charges at restaurants.”\u003c/p>\n\u003cp>Rice agrees. “I think that we’re going to be seeing a lot of less traditional restaurant [pay structures] over time. We’ll be seeing more restaurants that are adopting what Camino is doing,” said Rice. “Restaurants are also becoming more professional than they were before, which is a big deal for the Bay Area because restaurants are such a big part of our economy.”\u003c/p>\n\u003cp>Overall, Moore is pleased with the change. “It’s sort of scary being the test case but Allison and I are super happy with it,” he said.\u003c/p>\n\u003cfigure id=\"attachment_96357\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/7373492948_4ac0b22e13_k-720x540.jpg\" alt=\"Chinatown’s Legendary Palace shut down earlier this year.\" width=\"720\" height=\"540\" class=\"size-full wp-image-96357\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/7373492948_4ac0b22e13_k-720x540.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/7373492948_4ac0b22e13_k-720x540-400x300.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Chinatown’s Legendary Palace shut down earlier this year. \u003ccite>( sfbaywalk/Flickr)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Wages increase and Chinatown struggles\u003c/h4>\n\u003cp>Other restaurateurs in Oakland have not been as happy.\u003c/p>\n\u003cp>In March, stories in on \u003ca href=\"http://www.nbcbayarea.com/news/local/Its-the-Final-Nail-to-the-Coffin-Chinatown-Businesses-Struggle-Over-Oaklands-New-Minimum-Wage-296527421.html\" target=\"_blank\">NBC Bay Area\u003c/a>, on \u003ca href=\"http://sanfrancisco.cbslocal.com/2015/03/16/minimum-wage-hike-hits-oakland-chinatown-shop-restaurant-owners-hard/\" target=\"_blank\">CBS SF Bay Area\u003c/a>, and in the \u003ca href=\"http://www.sfchronicle.com/bayarea/article/Minimum-wage-hike-hurts-Oakland-Chinatown-6133798.php\" target=\"_blank\">San Francisco Chronicle\u003c/a> documented struggles in Oakland’s Chinatown. The Chronicle reported that four restaurants and six grocery stores in and around Chinatown closed in advance of the wage hike, including Legendary Palace, a popular banquet restaurant.\u003c/p>\n\u003cp>However, Bednarz, who has been working with the Chinatown Chamber of Commerce, says the problem in Chinatown is greater than the repercussions of increased labor costs. “There’s kind of a perfect storm going on in Chinatown. The port strike really hurt during Chinese New Year. There is the competition around Chinatown. Other cities now have more Asian markets and restaurants popping up so that people that used to commute to Chinatown to do their shopping now sometimes do it in their home city. Real-estate prices are starting to go up,” he said. “And now there’s this wage increase.”\u003c/p>\n\u003cp>Chinatown restaurants have generally not followed the same trends as the newer, pricier restaurants in booming parts of Oakland. Instead, they have succeeded based on providing food and other goods at super-low prices. According to Bednarz, it is this pricing structure that may be these businesses’ downfall. “It’s apparent that some Chinatown businesses might need to find other strategies to differentiate themselves. Rather than using price as the primary means to compete, they may need to focus on service and product instead,” Bednarz wrote in an \u003ca href=\"http://oaklandlocal.com/2015/04/oakland-minimum-wage-part-3-a-perfect-storm-in-chinatown-community-voices/\" target=\"_blank\">op-ed for Oakland Local\u003c/a>. “They might need to use different marketing strategies to reach non-Chinese customers, but need to do this carefully so they don’t alienate their Chinese neighbors.”\u003c/p>\n\u003cp>Jayaraman takes a harder stance. She points out that all restaurants have to refigure their budgets for all sorts of unexpected price increases, such as food costs or rental agreements. “When other costs go up and you see a business close, the public doesn’t say, ‘Oh well, that means we should have kept food costs artificially down.’ They say, ‘That’s too bad the restaurant couldn’t figure out how to make it work,’” she said. “Why is it that with wages alone, as opposed to every other cost, we say, ‘We should artificially depress wages to help out these business owners?’ We don’t say that with food costs, we don’t say that with supplier costs of any other kind. We can’t say that with human costs either. Human costs have so much greater impact on so many more people than all the other costs that a restaurant has to pay.”\u003c/p>\n\u003cp>Both Bednarz and Jayaraman agree that outreach and business support will go a long way to preventing more businesses from closing. “Our feeling is that business that just outright close when the minimum wage goes up either weren’t properly operating to begin with or don’t have the support or the know-how and the technical assistance to figure out how to make it work,” said Jayaraman. “I would love these employers that are struggling to be in touch with us and we can provide … peer support, or even potential access to various supports and capital.”\u003c/p>\n\u003cp>Jayaraman has organized a group of what she calls “\u003ca href=\"http://rocunited.org/our-work/high-road/\" target=\"_blank\">High Road Restaurants\u003c/a>” within ROC-United. “It’s not only a group of folks that are advocating for better wages and working conditions but it’s also a peer network for employers to learn from one another how to continually raise wages and do the right thing,” she said. In the East Bay, her group includes Arizmendi, Café Gabriela, \u003ca href=\"http://www.berkeleyside.com/tag/fusebox/\" target=\"_blank\">FuseBOX\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/kainbigan/\" target=\"_blank\">Kain’bigan\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/kingston-11/\" target=\"_blank\">Kingston 11\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/pietisserie/\" target=\"_blank\">PieTisserie\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/sweet-bar-bakery/\" target=\"_blank\">Sweet Bar Bakery\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/tamales-la-oaxaquena/\" target=\"_blank\">Tamales la Oaxaquena\u003c/a>, and the \u003ca href=\"http://www.berkeleyside.com/tag/swans-market/\" target=\"_blank\">Swan’s Marketplace\u003c/a> businesses \u003ca href=\"http://www.berkeleyside.com/tag/b-dama/\" target=\"_blank\">B-Dama\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/cosecha/\" target=\"_blank\">Cosecha\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/miss-ollies/\" target=\"_blank\">Miss Ollie’s\u003c/a>, and \u003ca href=\"http://www.berkeleyside.com/tag/the-cook-and-her-farmer/\" target=\"_blank\">The Cook and Her Farmer\u003c/a>. Kingston 11, in particular, has been involved in the group. Jayaraman says that the owners Adrian Henderson, Nigel Jones and Andre King came with her to Washington D.C. during the “Fight for 15” rallies on April 15.\u003c/p>\n\u003cp>Similarly, Bednarz, along with Hillyard and several other prominent Oakland restaurateurs like \u003ca href=\"http://www.berkeleyside.com/tag/charlie-hallowell/\" target=\"_blank\">Charlie Hallowell\u003c/a> of \u003ca href=\"http://www.berkeleyside.com/tag/pizzaiolo/\" target=\"_blank\">Pizzaiolo\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/penrose/\" target=\"_blank\">Penrose\u003c/a>, and \u003ca href=\"http://www.berkeleyside.com/tag/boot-and-shoe-service/\" target=\"_blank\">Boot and Shoe Service\u003c/a>; \u003ca href=\"http://www.berkeleyside.com/tag/chris-pastena/\" target=\"_blank\">Chris Pastena\u003c/a> of \u003ca href=\"http://www.berkeleyside.com/tag/chop-bar/\" target=\"_blank\">Chop Bar\u003c/a> and \u003ca href=\"http://www.berkeleyside.com/tag/lungomare/\" target=\"_blank\">Lungomare\u003c/a>; Emily and Scott Goldenberg of Caffe 817; and Allison Arevalo and Erin Wade of \u003ca href=\"http://www.berkeleyside.com/tag/homeroom/\" target=\"_blank\">Homeroom\u003c/a> teamed up earlier this year to brainstorm ways to adapt their budget and support other small business owners. “I would characterize the group as being a collection of values-driven restaurant owners, folks who are as concerned about fairness as they are about their own personal financial well-being,” said Bednarz.\u003c/p>\n\u003cp>“We didn’t form it to be an advocacy group or anything, it was more about partnering together,” said Hillyard. “If we wanted to do social marketing stuff together, great. If we just wanted to be a sounding board for ideas for one another, that’s OK too.”\u003c/p>\n\u003cp>The group’s main objective quickly became clear — education. “We needed to educate the public on why prices were going up and why it’s a good thing because everyone is going to be earning more income,” said Hillyard. “Our customers understood why prices went up and it’s fortunately worked out OK so far.” Member restaurants were active supporters of the Lift Up Oakland campaign, and some, like Bednarz and Hillyard, spoke at rallies and wrote letters to members of Oakland’s government.\u003c/p>\n\u003cp>“Speaking for myself personally, and interpreting what I hear and see from other folks, we genuinely give a crap about what is happening in all parts of Oakland,” said Bednarz. “And the last thing that I want to see is small businesses that have been anchors of neighborhoods for decades go out of business because they are unable to adapt to the change in their cost structure.”\u003c/p>\n\u003cp>Barnes, who works for Bednarz, was so impressed with his employer’s involvement that he, too, got involved. He spoke with other neighborhood restaurants and wrote a letter to the new mayor, Libby Schaff, who was been a vocal supporter of the campaign.\u003c/p>\n\u003cp>The best way to help any business struggling with the wage increase, say both Bednarz and Jayaraman, is to continue to support Oakland businesses, especially those in Chinatown. “Visit Chinatown. Remind yourself that it’s full of interesting restaurants and eat at your favorites. Tell the staff that you’d support them even if they raised their prices a bit,” said Bednarz.\u003c/p>\n\u003cfigure id=\"attachment_96358\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/4434448412_6822b151cf_o-720x480.png\" alt=\"Actual Café. \" width=\"720\" height=\"480\" class=\"size-full wp-image-96358\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/4434448412_6822b151cf_o-720x480.png 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/4434448412_6822b151cf_o-720x480-400x267.png 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Actual Café. \u003ccite>(Carrie Cizauskas/Flickr)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Emeryville set for highest minimum wage in country\u003c/h4>\n\u003cp>Only three miles but a world away from Chinatown, Oakland’s neighbor to the west has been having minimum wage debates of its own. Last week, Emeryville’s city council unanimously approved a rapid minimum wage increase — from $9 to over $14 per hour — to occur this July.\u003c/p>\n\u003cp>Unlike Oakland’s wage increase, Emeryville’s change did not come about via an election. Instead, the council members drafted and voted on an ordinance to increase the wage on their own, \u003ca href=\"http://www.berkeleyside.com/tag/berkeley-minimum-wage/\" target=\"_blank\">as they did in Berkeley last year\u003c/a>. The council has accepted public comments at special city council meetings, but did not call for a study of the increase or ask for input other than during meetings.\u003c/p>\n\u003cp>The council’s wage will be, by far, the highest in the country, and it is set to increase almost to $16 per hour by 2019. Despite support for a fair wage, Emeryville small businesses were not supportive of the original proposal, which would have included all businesses with at least 10 employees.\u003c/p>\n\u003cp>Businesses with fewer than 10 employees would be able to take a small business exemption and phase in the wage increase over three years. Those who take the exemption would need to match Oakland’s $12.25 wage on July 1; the following year, wages would rise to $13 per hour and continue to increase by one dollar per hour each year until 2019, when the wage would need to match the rest of Emeryville. After push back from business owners like Hillyard, who has 12 employees at his Emeryville location and wouldn’t have qualified for the exemption, the council has amended its proposal to define a small business at 55 employees.\u003c/p>\n\u003cp>The problem, said Hillyard, who opened his Emeryville Farley’s location in 2010, is that the increase is scheduled to go in effect overnight. Hillyard has already raised his prices at his Emeryville location to match those at Farley’s East, but doesn’t believe he could retain his customers with a second price increase this summer. “There would definitely be customer push back at that point. I don’t know what we would do,” he said. “Even our employees are saying, ‘Wow, that’s a big increase. That would be great, but that might be hard for the business.’”\u003c/p>\n\u003cp>Another concern about Emeryville’s wage increase is that it will shift the economic dynamic between it and other East Bay cities. Employees could theoretically leave jobs in Berkeley or Oakland to go work in Emervyille, while customers could theoretically abandon pricier Emeryville restaurants for others across the border.\u003c/p>\n\u003cp>As Bendarz explained, it isn’t difficult for potential customers to comparison shop. “A latte is a latte and you can get something fairly similar at plenty of places around town. For customers who are particularly price sensitive, it’s not a big trip for them to go two blocks across the Berkeley border and get a similar drink for less,” he said.\u003c/p>\n\u003cp>In an attempt to stymie these concerns, Berkeley mayor \u003ca href=\"http://www.berkeleyside.com/2014/04/22/berkeley-mayor-proposes-east-bay-minimum-wage/\" target=\"_blank\">Tom Bates proposed a coordinated regional minimum wage\u003c/a> last spring between the East Bay cites of Berkeley, Oakland, Emeryville, Alameda, Albany and El Cerrito. Bates suggested that each neighboring city match Oakland’s wage plan in order to level the playing field between regional businesses. “I don’t want to put our businesses at a disadvantage with regard to neighboring communities. It makes sense for everyone to have the same wage,” he told Berkeleyside in April 2014.\u003c/p>\n\u003cp>Likewise, Hillyard is in support of a regional approach to wage increase. “It would make it much easier for businesses. For example, [Bednarz’s] Actual Cafe is a block and half away from our Emeryville store. If they’re paying a wage that’s two dollars less per hour that means their prices are going to be less as well and it puts our Emeryville store in a difficult competitive situation. The increase would be a real challenge for Emeryville small businesses,” he said.\u003c/p>\n\u003cp>As of October, when Berkeley’s minimum wage went up to $10 per hour, \u003ca href=\"http://www.berkeleyside.com/2014/10/01/berkeleys-minimum-wage-is-10-starting-today-oct-1/\" target=\"_blank\">Bates was still advocating for a regional wage\u003c/a>. It may happen without actual legislation. Both Oakland and Emeryville’s wage increases have prompted further discussion on the part of Berkeley City Council’s Labor Commission. Last month, the commission proposed a revised minimum wage law that would increase wages to $16 by 2017 and include language similar to Measure FF regarding service charges. The council is expected to consider the proposal June 9; meanwhile Berkeley’s Minimum Wage Initiative Coalition plans on filing for a ballot measure petition should the proposal fall through, according to the \u003ca href=\"http://www.contracostatimes.com/breaking-news/ci_27775621/berkeley-could-have-16-minimum-wage-by-2017\" target=\"_blank\">Conta Costa Times\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_96359\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/Chris-Farleys-SF-720x480.jpg\" alt=\"Chris Hillyard, owner of Farley’s on 65th in Emeryville and Farley’s East in Uptown, supported Measure FF, but has concerns about Emeryville’s proposed wage increase. \" width=\"720\" height=\"480\" class=\"size-full wp-image-96359\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/Chris-Farleys-SF-720x480.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/Chris-Farleys-SF-720x480-400x267.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Chris Hillyard, owner of Farley’s on 65th in Emeryville and Farley’s East in Uptown, supported Measure FF, but has concerns about Emeryville’s proposed wage increase. \u003ccite>(courtesy Chris Hillyard)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Looking to the future: diners encouraged to get involved\u003c/h4>\n\u003cp>The IRLE is currently researching how Oakland restaurants have adapted to the wage increase. The research center collected data on prices before and after the increase, and, according to Reich, plans to release the research soon.\u003c/p>\n\u003cp>Regardless of the results, Oakland restaurant employees and owners predict more changes to come.\u003c/p>\n\u003cp>“This is such a big picture win for everybody, but any time that there’s a change in the industry, any time there’s a disruption like this, it will have some kind of random effects,” said Porter. “Some might unfortunately take a hit to their business, and that could be me. There’s no guarantee that it won’t be me. So everyone’s a little nervous because you know that when there’s a sea change like this, it’s the roll of the dice could be that it doesn’t work for me short term.”\u003c/p>\n\u003cp>However, added Porter, “The only way to make the business sustainable is for price of going out to reflect the price of paying employees in our community enough to live on.”\u003c/p>\n\u003cp>Pina Kahlo, a barista at the new Speaker Box Café in Uptown, thinks that the minimum wage issue is more complicated. “Minimum wage is going to be minimum wage. The system was never meant to fully take care of [service workers]. It is up to us as individuals to be good neighbors to one another, to see one another as human,” she said.\u003c/p>\n\u003cp>Her solution? Stay active and engaged. “Come out for fair wage, come be with people who also think and want to hang out and make friends too. If you are not out being with people who expressly say ‘I am about this thing,’ then you are the one that’s missing out,” she said.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Similarly, Jayaraman encourages diners to continue to participate in the wage discussion. “I would encourage the consuming public to continue to express their support for workers having better wages and working conditions every time they eat out,” she said. “It’s both a way to let restaurants know that customers really value these things, and it’s also a way to express support to employers who are making the change, staying in business, doing it right, not complaining and trying to figure it out. … More than ever we should be supporting Oakland restaurants because they’ve made a huge leap.”\u003c/p>\n\n","blocks":[],"excerpt":"The effects of new minimum wages are causing a ripple effect of changes across the East Bay restaurant scene.","status":"publish","parent":0,"modified":1432340055,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":89,"wordCount":6693},"headData":{"title":"East Bay Restaurants Adapt to New Minimum Wage | KQED","description":"The effects of new minimum wages are causing a ripple effect of changes across the East Bay restaurant scene.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"East Bay Restaurants Adapt to New Minimum Wage","datePublished":"2015-05-24T15:00:47.000Z","dateModified":"2015-05-23T00:14:15.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"96350 http://ww2.kqed.org/bayareabites/?p=96350","disqusUrl":"https://ww2.kqed.org/bayareabites/2015/05/24/east-bay-restaurants-adapt-to-new-minimum-wage/","disqusTitle":"East Bay Restaurants Adapt to New Minimum Wage","nprByline":"Kate Williams, \u003ca href=\"http://ww2.kqed.org/bayareabites/author/berkeleysidenosh/\">Berkeleyside NOSH\u003c/a>","path":"/bayareabites/96350/east-bay-restaurants-adapt-to-new-minimum-wage","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>On March 2, the city of Oakland raised its minimum wage by 36%. At $12.25 per hour, the new wage is the highest in the country — for now. San Francisco matched this wage on May 1, and Emeryville will leapfrog both cities in July.\u003c/p>\n\u003cp>The wage increase was voted into law last November as a part of Measure FF. Over 80% of Oakland residents supported the measure. And while all Oakland businesses are now required to abide by the new wage, conversations about its benefits and repercussions have been most active in the restaurant industry.\u003c/p>\n\u003cp>Restaurants have notoriously small operational budget margins, and are, according to \u003ca href=\"http://www.berkeleyside.com/tag/saru-jayaraman/\" target=\"_blank\">Saru Jayaraman\u003c/a>, the co-director of \u003ca href=\"http://www.berkeleyside.com/tag/restaurant-opportunities-centers-united/\" target=\"_blank\">Restaurant Opportunity Centers United\u003c/a> (ROC-United) and director of the Food Labor Research Center at UC Berkeley, one of the largest employers of low-wage workers in the United States. Jayaraman reports that seven out of the ten lowest paying jobs in the country are restaurant jobs.\u003c/p>\n\u003cfigure id=\"attachment_96353\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/Frances-with-Saru-by-Pete-Rosos-720x480.jpg\" alt=\"Saru Jayaraman, seen here speaking with Berkeleyside’s Frances Dinkelspiel at Uncharted 2014, says in the long run wage increases in the restaurant field will be better for business.\" width=\"720\" height=\"480\" class=\"size-full wp-image-96353\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/Frances-with-Saru-by-Pete-Rosos-720x480.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/Frances-with-Saru-by-Pete-Rosos-720x480-400x267.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Saru Jayaraman, seen here speaking with Berkeleyside’s Frances Dinkelspiel at Uncharted 2014, says in the long run wage increases in the restaurant field will be better for business. \u003ccite>(Pete Rosos)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>California does, however, have some protections for restaurant workers. Service staff is required to make at least the state minimum wage; they are not permitted to be paid a “tipped minimum” of $2.13 per hour as they are in other states. Still, the state’s minimum wage of $9 per hour doesn’t go very far in the Bay Area’s booming economy. (Indeed, according to \u003ca href=\"http://livingwage.mit.edu/places/0600153000\" target=\"_blank\">MIT’s Living Wage Calculator\u003c/a>, the minimum wage needed to support a single adult in Oakland is over $11; one needs to make over double that number to support even a small family.)\u003c/p>\n\u003cp>“There’s been an ongoing problem in the restaurant industry where many of our employees have trouble paying the bills. It is bad for the industry and bad for the community,” said \u003ca href=\"http://www.berkeleyside.com/tag/jay-porter/\" target=\"_blank\">Jay Porter\u003c/a>, the owner of \u003ca href=\"http://www.berkeleyside.com/tag/the-half-orange/\" target=\"_blank\">The Half Orange\u003c/a> in Fruitvale and upcoming \u003ca href=\"http://www.berkeleyside.com/tag/salsipuedes/\" target=\"_blank\">Salsipuedes\u003c/a> in North Oakland. “When one of your most significant industries as a whole employs people at a sub-living wage, that’s not good for the community. That’s money that’s not circulating in the economy. It also means that there’s a really high turnover. It means that a lot of people are having to work 70 to 80 hours a week to pay the bills.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Measure FF was an attempt to change that problem. The measure not only set Oakland’s minimum wage at $12.25 per hour, but it also added mandatory paid sick leave and provided means for retaliation should employers not follow the new rules. Oakland’s new wage is now also tied to the Consumer Price Index, and it will be allowed to rise each year on January 1.\u003c/p>\n\u003cp>Restaurant owners have adapted to the wage increase in various ways. Most, like Porter, have simply increased prices to account for the higher labor costs. Other restaurants, such as \u003ca href=\"http://www.berkeleyside.com/tag/homestead/\" target=\"_blank\">Homestead,\u003c/a> \u003ca href=\"http://www.berkeleyside.com/tag/dopo/\" target=\"_blank\">Dopo\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/camino/\" target=\"_blank\">Camino\u003c/a> in Oakland, and \u003ca href=\"http://www.berkeleyside.com/tag/comal/\" target=\"_blank\">Comal\u003c/a> in Berkeley, have used this wage increase to re-format their entire wage structure. All four have eliminated tipping and have incorporated the average tip amount (around 20% of the total bill) to the line item charge for each dish on their menus. Still others, like \u003ca href=\"http://www.berkeleyside.com/tag/bocanova/\" target=\"_blank\">Bocanova\u003c/a> in Jack London Square, have added a mandatory service charge to their bill.\u003c/p>\n\u003cp>These adaptations are part of a larger conversation. Last month saw \u003ca href=\"http://www.berkeleyside.com/tag/fight-for-15/\" target=\"_blank\">local and national protests\u003c/a> for a $15 minimum wage. Measure FF has prompted many restaurants to reconsider tipping and fair pay between employees. Small, non-English speaking food businesses are closing, or considering it. Emeryville is considering an historically large wage bump — from $9 per hour to over $14. And everyone, especially restaurant workers, are reconsidering what, exactly, a fair wage means.\u003c/p>\n\u003cfigure id=\"attachment_96354\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/JayPorter-KatieMayfield.jpg\" alt=\"Jay Porter and Katie Mayfield own The Half Orange and forthcoming Salsipuedes. Porter has been an advocate for disrupting the traditional tipping systems in restaurants. \" width=\"720\" height=\"503\" class=\"size-full wp-image-96354\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/JayPorter-KatieMayfield.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/JayPorter-KatieMayfield-400x279.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Jay Porter and Katie Mayfield own The Half Orange and forthcoming Salsipuedes. Porter has been an advocate for disrupting the traditional tipping systems in restaurants. \u003ccite>(Jay Porter)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Increases better for business?\u003c/h4>\n\u003cp>UC Berkeley’s \u003ca href=\"http://www.berkeleyside.com/tag/institute-for-research-on-labor-and-employment/\" target=\"_blank\">Institute for Research on Labor and Employment\u003c/a> (IRLE) prepared a policy brief on the Oakland measure last June. The research suggested that restaurants and retail businesses would likely be most affected by the increase, but restaurants would only need to raise their prices by 2.5%. Authors Michael Reich, Ken Jacobs, Annette Berndardt and Ian Perry suggested that reduced employee turnover costs and improved work performance would make up for increased labor costs.\u003c/p>\n\u003cp>However, most of the restaurant owners we have spoken to have all raised their prices much more than 2.5%. Chris Hillyard of \u003ca href=\"http://www.berkeleyside.com/tag/farleys-east/\" target=\"_blank\">Farley’s\u003c/a> coffee shops in Uptown and in Emeryville raised his prices between 5% and 15%, depending on the item. \u003ca href=\"http://www.berkeleyside.com/tag/sal-bednarz/\" target=\"_blank\">Sal Bednarz\u003c/a> of \u003ca href=\"http://www.berkeleyside.com/tag/actual-cafe/\" target=\"_blank\">Actual Café\u003c/a> and \u003ca href=\"http://www.berkeleyside.com/tag/victory-burger/\" target=\"_blank\">Victory Burger\u003c/a> gave most of his items at 9% bump. Porter’s prices went up around 15%.\u003c/p>\n\u003cp>“It is clear that the researchers missed some of the important parts of the picture. They talked about a restaurant price increase of 3%. That still may be the average price increase, but for the small restaurants that I’m talking to, none of us can do it for 3%, none of us,” said Bednarz. “A lot of us are doing double digit price increases, much more.”\u003c/p>\n\u003cp>Hillyard noted labor costs are more complicated than the direct wage cost. “There are also sick days. Plus workers compensation goes up because your payroll costs have gone up,” he said. Indeed, the IRLE report didn’t include the increased costs of paid sick leave. However, Reich noted in an email that Oakland area restaurant prices have been increasing around 2.4% per year, which makes these bumps part of a general trend.\u003c/p>\n\u003cp>Despite these price increases, most Oakland restaurants are still doing what they do best.\u003c/p>\n\u003cp>“Our revenue is up a bit, and our customer traffic is close to what it was before we made the changes. We’ve had a lot of customers who have noticed the price increases. Some already understood why [they were] going up, some didn’t,” said Bednarz. “My crew was well equipped to educate them and had good conversations across the counter.”\u003c/p>\n\u003cp>However, Bednarz did report that his morning coffee business has been a bit slower than usual. “Who knows what that is. It could be something like our customers are driving a different direction to get to work or that schools in the neighborhood have different hours this week. In a few weeks it may come back, but it may not.” Porter and Hillyard also report fairly consistent business.\u003c/p>\n\u003cp>Jayaraman says that in the long run, the wage increase will be better for business. “The economy is going to do better. I think we’re going to see better restaurants, better service, better food. I think we’re going to see actually faster job growth. That’s what we’ve seen everywhere else every time the wage has gone up,” she said.\u003c/p>\n\u003cp>Another IRLE overview report on local minimum wage laws said that wage increases do increase the spending power of employees and that they do typically spend that extra money. The authors did note, however, that research still needs to be done to estimate the economic stimulus created by this new spending power.\u003c/p>\n\u003cp>Perhaps just as important as spending power is employee morale. “You’re going to have healthier workers because they have paid sick days. You’re going to have happier workers because they’re better paid. You’re going to have better service. It’s going to be good for everybody,” said Jayaraman.\u003c/p>\n\u003cp>However, as Bednarz explained, these changes will not happen overnight. His employees received their first increased pay check three weeks after restaurants instated higher prices. “That’s a number of weeks of lag,” he said. “The folks who are coming to a place like mine in the morning are coming up for their morning coffee, and they’re often daily customers. A small increase in what they’re paying, that increases five times. It accumulates. I’m not saying that these people don’t care about what we’re doing, but they may not be able to afford to care.”\u003c/p>\n\u003cfigure id=\"attachment_96355\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/IMG_2339.jpg\" alt=\"Sandwiches at Victory Burger have gone up in price by around 9% after the wage increase went into effect.\" width=\"720\" height=\"540\" class=\"size-full wp-image-96355\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/IMG_2339.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/IMG_2339-400x300.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Sandwiches at Victory Burger have gone up in price by around 9% after the wage increase went into effect. \u003ccite>(Emilie Raguso)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Front of house or back of the house? Unequal pay\u003c/h4>\n\u003cp>Historically, there have been three different wage structures in place in restaurants. Employees in the “back of the house” — cooks, dishwashers, bussers — make a single hourly wage without tips. Those in the “front of the house” — servers and hosts — make an hourly minimum plus tips on their bills. Managers usually get a salary.\u003c/p>\n\u003cp>Because California doesn’t allow for a tipped minimum, front-of-house workers typically take home far more income than the cooks and dishwashers in the back of the house — even if the back-of-the-house workers are making more than the minimum wage. This means that, even if all employees get a wage increase, the front of house still stands to bring home substantially more income. If prices increase, tips will increase as well, further increasing take-home pay. (Some restaurant owners we spoke to, like Porter, gave everyone a raise, while others, like Bednarz, raised wages only for those making below $12.25, with a few exceptions.)\u003c/p>\n\u003cp>At a high-end restaurant where diners are tipping 20% on a $100 tab, the profits for servers can be very high. “I understand that for servers in places that they’re still getting tipped, they’re making a killing,” said Tim Veatch, a cook at Camino.\u003c/p>\n\u003cp>It is a fairly common practice for restaurants to “pool” tips at the end of service and divide up the total among employees. Typically under this system, servers take home a higher proportion of the tip, while back-of-the-house employees get a smaller percentage.\u003c/p>\n\u003cp>California’s labor code makes this practice a little more complicated. It does allow for tip pooling, but the original legislation says that tips must go to those who are in a “direct line of service.” However, in 2009, the California Supreme Court ruled on several cases that challenged the wording of the legislation. In Etheridge v. Reins International, the court held that all employees in the “chain of service” are eligible to receive a share of tips, which included dishwashers and other members of the kitchen staff. In Budrow v. Dave & Busters, the court expanded that idea to say that the decision regarding who can participate in the tip pool can be “based on a reasonable assessment of the patron’s intentions.” The differences between a “direct line of” and “chain of” service aren’t exactly clear-cut, and the definition of a “reasonable assessment” is open to legal interpretation.\u003c/p>\n\u003cp>Each restaurant owner that we spoke to said that they try to balance wages between the front and back of the house as best as possible, but have been wary of violating the law. When Hillyard and his wife and co-owner Amy Hillyard opened Farley’s, the pair intentionally gave their cooks the job of delivering food to customers so that they could legally participate in the tip pool. Bednarz says that he has always pooled tips and has suggested raising the tip share between employees, but the final say came down to the employees.\u003c/p>\n\u003cp>“There’s a legal minefield that we’re trying to maneuver here as we try to do right. And there are lots of ways that we can do wrong,” said Bednarz. “My interest is in making sure that the staff also feels like it is fair. None of the front of house crew, who have to give up a little bit more of what they take in, is unhappy to give a little bit more of it to the kitchen.”\u003c/p>\n\u003cp>Part of the reason for their willingness, Bednarz added, is because tip amounts have gone up along with prices. “Prices go up, tips go up, a lot more of the crew get to share more deeply in the pool of tips, and effectively everybody gets a raise,” he said.\u003c/p>\n\u003cp>When California’s state minimum wage rose from $8 per hour to $9 in July 2014, Camino owners \u003ca href=\"http://www.berkeleyside.com/tag/russell-moore/\" target=\"_blank\">Russell Moore\u003c/a> and \u003ca href=\"http://www.berkeleyside.com/tag/allison-hopelain/\" target=\"_blank\">Allison Hopelain\u003c/a> made attempts to encourage the service staff to distribute tips. Unlike Bendarz’s employees, they chose not to.\u003c/p>\n\u003cp>This was around the time that Veatch started working at the restaurant. “Russ and Allison had made a few attempts to allow the service staff to give us larger portions of the tipped money that was coming in, to cut the kitchen in,” he said. “But the law dictates that you, as the manager of a restaurant, are not allowed to distribute a server’s tips. They have to do that for themselves.”\u003c/p>\n\u003cp>Veatch believes this system to be entirely inequitable. “The real issue is that the money from tips is part of the kitchen’s doing. That imbalance has always bothered me, as someone who puts the hours in and who puts the passion in. Then there are other people who can walk in, serve your passion and walk out with two times the amount of money that you made in half the time,” he said.\u003c/p>\n\u003cp>This fact was part of Moore’s impetus for completely re-formatting his pay structure. “I was tired of the semi-legal prospect of trying to get the waiters to tip out more to the back of the house or trying to alter the tip pool,” he said. “We all know it’s sort of a grey area.” As of January 31, Camino no longer accepts tips.\u003c/p>\n\u003cfigure id=\"attachment_96356\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/Russell-Moore-720x539.jpg\" alt=\"Russell Moore, co-owner of Camino: “Why don’t we just charge people what it costs to eat at our restaurant?” \" width=\"720\" height=\"539\" class=\"size-full wp-image-96356\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/Russell-Moore-720x539.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/Russell-Moore-720x539-400x299.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Russell Moore, co-owner of Camino: “Why don’t we just charge people what it costs to eat at our restaurant?” \u003ccite>(Courtesy Russell Moore)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>The not-so-simple question of tipping\u003c/h4>\n\u003cp>Moore and Hopelain had always wanted to eliminate tips. Before opening Camino, Moore worked at \u003ca href=\"http://www.berkeleyside.com/tag/chez-panisse/\" target=\"_blank\">Chez Panisse\u003c/a>, where there is a 17% service charge on all bills. He and Hopelain wanted to take this principle one step further and incorporate that charge into the cost of the dishes. But, he said, “we kind of chickened out. We were going to be in this weird stretch of Oakland and back then there weren’t many restaurants opening there.” The pair instead instated a regular tipping system with a tip pool. They kept all front of house employees at the same wage, where they all shared tasks and tips.\u003c/p>\n\u003cp>However, Moore said, “As minimum wage has been going up, we’ve thought more and more about how we could change it and what we could do.” They entertained the idea of adding a service charge, as at Chez Panisse, but changed their mind once they read the wording of Measure FF. According to the measure, service charges “shall be paid over in their entirety to the Hospitality Workers performing services for the customers.” The measure also stipulates that supervisors and owners could not take in any of the service charges. Moore was concerned that he wouldn’t legally be able to divide a service charge with the back of the house workers.\u003c/p>\n\u003cp>“It didn’t seem like we could cleanly have a service charge and cleanly decide where all that money goes,” he said. “So we thought, ‘Why don’t we just charge people what it costs to eat at our restaurant?’”\u003c/p>\n\u003cp>Each of Camino’s menus advertises its tip-less system in bold type. And the dishes themselves are significantly more expensive — more than 20% — than they were before the change. The increased item price goes directly to paying employees’ higher wages.\u003c/p>\n\u003cp>So far, says Moore, there hasn’t been any backlash from customers.\u003c/p>\n\u003cp>Host Hannah Rice is often the first person to explain the new system to guests. “I thought people wouldn’t be so accepting. But everyone has been really excited about it,” she said.\u003c/p>\n\u003cp>Veatch has been in to eat in the restaurant on his days off and he says that his friends find it exciting. “They’re like, ‘Oh there’s no tip!’ There’s confusion as to what you’re supposed to do, but I talk them through it,” he said. “I think everyone has really accepted it as a beneficial form of dining. You just get to sign your check and leave.”\u003c/p>\n\u003cp>Porter says that models like Camino’s have been met with criticism from labor activists because “they say it removes money from the pockets of servers and that is against the intent of Measure FF.”\u003c/p>\n\u003cp>However, notes Jayaraman, “The impetus to move more and more towards living wages paid by the employer as opposed to by consumer tips is a good thing.”\u003c/p>\n\u003cp>Moore admits that he did lose servers over the wage change. “For some of our more experienced servers, this just gave them the impetus to do that other career that they wanted to do, start that business, go back to school, or do something else. They didn’t leave with ill will,” he said. “A couple went to other restaurants to make more money. But everyone gave lots of notice and we had plenty of time and at the end of the day, we have a really great staff, front and back.”\u003c/p>\n\u003cp>He has tried to combat employee turnover by increasing hours and reformatting the wage structure to encourage employees to work for promotion. Importantly, Moore says that the current wage structure incentivizes his servers to work five days a week, which qualifies them for health insurance.\u003c/p>\n\u003cp>Servers’ wages are also more predictable, he said. “I’ve always hated that feeling that servers are guns for hire. Like, ‘Oh it’s going to be a slow night, let’s cut them. Things are dying down, let’s send them home,’” he said. “Our selling points to servers were, ‘Yes, on a good Saturday night you’ll make less money. But on a slow Saturday brunch you’re going to make more.’” On those slow days, Moore gives the front of house staff other tasks to do, such as helping with kitchen prep work, in order for them to keep their hours up.\u003c/p>\n\u003cp>Moore has also built in a growth track for his front of house employees. Typically, servers do not want to get promoted to a management position, he said, because that salary pays less than the server was making in tips. Plus, in his old system, all servers were paid the same. Now he gives servers with more experience a higher starting wage. “There’s incentive for the new server to learn more and become a better server and manager,” he said. “Like any other job in the world, you can get a raise, or you can not get a raise. We can manage people like you can manage people in any other line of work.”\u003c/p>\n\u003cp>Rice was hired before the change, and she decided to stay on, despite losing her tips. “Overall I probably make less, but I’m OK with that. I think it is the right thing to do,” she said. “The minimum wage should be helping everyone, and with tips it is only really helping the front of the house. The dishwashers and the bussers get left behind. Everyone works together, so for one person to be making more is unfair.” Rice added that she would be happy to work at another restaurant with a similar tipless pay structure.\u003c/p>\n\u003cp>For now, though, she hopes to continue to work and move up the ranks at the restaurant. “They’re providing a chance for everyone to move around and be familiar with other parts of the restaurant,” she said. “We get to see different sides of the restaurant and experience a different position.”\u003c/p>\n\u003cp>On the other hand, Cabril Barnes, a manager at both Actual Café and Victory Burger, says that he would be one of those servers to leave if tips had been eliminated at his restaurant. “Tips are definitely an incentive. I personally would not want to work in a place without tips and work just for a flat base rate,” he said.\u003c/p>\n\u003cp>Despite the staffing changes, Moore and his employees all report that the restaurant’s service has improved. “We have a better sense of teamwork now,” said Rice. “Guests are looking closer at our service and they’re applauding us. Everyone is noticing positive effects.”\u003c/p>\n\u003cp>Porter has long been an advocate for eliminating tips. He famously did so at his San Diego restaurant, The Linkery. “The idea that servers are motivated by tips is an enormous fallacy that has been totally disproven,” he said. “Great servers, as long as they are well-compensated, are going to do great work without tipping incentives. It turns out that that is pretty much how every other American works. When you’re fairly compensated, you’re going to do great work out of your own personal pride and the joy of doing great work.”\u003c/p>\n\u003cp>Indeed, Moore reports that his servers feel just like that. “The servers said something curious the other day at staff meal. They said, ‘There’s something about this which makes everything feel more professional. It makes it feel less like I’m putting on an act for a customer in the hopes that they might tip me. It’s more like I have an incentive to just do a really good job.’”\u003c/p>\n\u003cp>Bednarz agrees. “You can argue all day long about how tips deviate based on the level of service or product that we give — they don’t. On a crappy day, our tips are just as good as on a good day. We know when we’re screwing up on the floor and when we’re kicking ass. And tips are mostly the same,” he said.\u003c/p>\n\u003cp>Not surprisingly, Moore’s back of the house team is pleased with the changes. “The cooks got raises and they’re excited that we’ve taken an interest in making it so they can keep living here. Our cooking crew has always been fairly solid, but now it’s really solid,” said Moore. “We pay more than almost anyone now. It’s still not enough, but it’s getting there.”\u003c/p>\n\u003cp>Added Veatch, “I’ve been in the industry for ten years and I’ve never worked at a restaurant that was more respectful for my hours, did more to pay me for the moments that I’m in there, and cared more for me from a quality-of-life perspective and a cost of living perspective than Camino. I would never go back to a restaurant with a traditional tipping system.”\u003c/p>\n\u003cp>Moore hopes that more restaurants will see Camino’s success and mimic their payment approach. “What I would love is for the restaurants that are really busy and popular, that make more money, for them to make the change,” he said. “But I think they’re nervous about losing their floor staff.”\u003c/p>\n\u003cp>“It’s going to be a really big change, and there’s going to be a big transition,” Moore continued. “I think the ‘no tipping’ model might be the model because I think customers are going to get tired of weird charges at restaurants.”\u003c/p>\n\u003cp>Rice agrees. “I think that we’re going to be seeing a lot of less traditional restaurant [pay structures] over time. We’ll be seeing more restaurants that are adopting what Camino is doing,” said Rice. “Restaurants are also becoming more professional than they were before, which is a big deal for the Bay Area because restaurants are such a big part of our economy.”\u003c/p>\n\u003cp>Overall, Moore is pleased with the change. “It’s sort of scary being the test case but Allison and I are super happy with it,” he said.\u003c/p>\n\u003cfigure id=\"attachment_96357\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/7373492948_4ac0b22e13_k-720x540.jpg\" alt=\"Chinatown’s Legendary Palace shut down earlier this year.\" width=\"720\" height=\"540\" class=\"size-full wp-image-96357\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/7373492948_4ac0b22e13_k-720x540.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/7373492948_4ac0b22e13_k-720x540-400x300.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Chinatown’s Legendary Palace shut down earlier this year. \u003ccite>( sfbaywalk/Flickr)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Wages increase and Chinatown struggles\u003c/h4>\n\u003cp>Other restaurateurs in Oakland have not been as happy.\u003c/p>\n\u003cp>In March, stories in on \u003ca href=\"http://www.nbcbayarea.com/news/local/Its-the-Final-Nail-to-the-Coffin-Chinatown-Businesses-Struggle-Over-Oaklands-New-Minimum-Wage-296527421.html\" target=\"_blank\">NBC Bay Area\u003c/a>, on \u003ca href=\"http://sanfrancisco.cbslocal.com/2015/03/16/minimum-wage-hike-hits-oakland-chinatown-shop-restaurant-owners-hard/\" target=\"_blank\">CBS SF Bay Area\u003c/a>, and in the \u003ca href=\"http://www.sfchronicle.com/bayarea/article/Minimum-wage-hike-hurts-Oakland-Chinatown-6133798.php\" target=\"_blank\">San Francisco Chronicle\u003c/a> documented struggles in Oakland’s Chinatown. The Chronicle reported that four restaurants and six grocery stores in and around Chinatown closed in advance of the wage hike, including Legendary Palace, a popular banquet restaurant.\u003c/p>\n\u003cp>However, Bednarz, who has been working with the Chinatown Chamber of Commerce, says the problem in Chinatown is greater than the repercussions of increased labor costs. “There’s kind of a perfect storm going on in Chinatown. The port strike really hurt during Chinese New Year. There is the competition around Chinatown. Other cities now have more Asian markets and restaurants popping up so that people that used to commute to Chinatown to do their shopping now sometimes do it in their home city. Real-estate prices are starting to go up,” he said. “And now there’s this wage increase.”\u003c/p>\n\u003cp>Chinatown restaurants have generally not followed the same trends as the newer, pricier restaurants in booming parts of Oakland. Instead, they have succeeded based on providing food and other goods at super-low prices. According to Bednarz, it is this pricing structure that may be these businesses’ downfall. “It’s apparent that some Chinatown businesses might need to find other strategies to differentiate themselves. Rather than using price as the primary means to compete, they may need to focus on service and product instead,” Bednarz wrote in an \u003ca href=\"http://oaklandlocal.com/2015/04/oakland-minimum-wage-part-3-a-perfect-storm-in-chinatown-community-voices/\" target=\"_blank\">op-ed for Oakland Local\u003c/a>. “They might need to use different marketing strategies to reach non-Chinese customers, but need to do this carefully so they don’t alienate their Chinese neighbors.”\u003c/p>\n\u003cp>Jayaraman takes a harder stance. She points out that all restaurants have to refigure their budgets for all sorts of unexpected price increases, such as food costs or rental agreements. “When other costs go up and you see a business close, the public doesn’t say, ‘Oh well, that means we should have kept food costs artificially down.’ They say, ‘That’s too bad the restaurant couldn’t figure out how to make it work,’” she said. “Why is it that with wages alone, as opposed to every other cost, we say, ‘We should artificially depress wages to help out these business owners?’ We don’t say that with food costs, we don’t say that with supplier costs of any other kind. We can’t say that with human costs either. Human costs have so much greater impact on so many more people than all the other costs that a restaurant has to pay.”\u003c/p>\n\u003cp>Both Bednarz and Jayaraman agree that outreach and business support will go a long way to preventing more businesses from closing. “Our feeling is that business that just outright close when the minimum wage goes up either weren’t properly operating to begin with or don’t have the support or the know-how and the technical assistance to figure out how to make it work,” said Jayaraman. “I would love these employers that are struggling to be in touch with us and we can provide … peer support, or even potential access to various supports and capital.”\u003c/p>\n\u003cp>Jayaraman has organized a group of what she calls “\u003ca href=\"http://rocunited.org/our-work/high-road/\" target=\"_blank\">High Road Restaurants\u003c/a>” within ROC-United. “It’s not only a group of folks that are advocating for better wages and working conditions but it’s also a peer network for employers to learn from one another how to continually raise wages and do the right thing,” she said. In the East Bay, her group includes Arizmendi, Café Gabriela, \u003ca href=\"http://www.berkeleyside.com/tag/fusebox/\" target=\"_blank\">FuseBOX\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/kainbigan/\" target=\"_blank\">Kain’bigan\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/kingston-11/\" target=\"_blank\">Kingston 11\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/pietisserie/\" target=\"_blank\">PieTisserie\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/sweet-bar-bakery/\" target=\"_blank\">Sweet Bar Bakery\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/tamales-la-oaxaquena/\" target=\"_blank\">Tamales la Oaxaquena\u003c/a>, and the \u003ca href=\"http://www.berkeleyside.com/tag/swans-market/\" target=\"_blank\">Swan’s Marketplace\u003c/a> businesses \u003ca href=\"http://www.berkeleyside.com/tag/b-dama/\" target=\"_blank\">B-Dama\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/cosecha/\" target=\"_blank\">Cosecha\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/miss-ollies/\" target=\"_blank\">Miss Ollie’s\u003c/a>, and \u003ca href=\"http://www.berkeleyside.com/tag/the-cook-and-her-farmer/\" target=\"_blank\">The Cook and Her Farmer\u003c/a>. Kingston 11, in particular, has been involved in the group. Jayaraman says that the owners Adrian Henderson, Nigel Jones and Andre King came with her to Washington D.C. during the “Fight for 15” rallies on April 15.\u003c/p>\n\u003cp>Similarly, Bednarz, along with Hillyard and several other prominent Oakland restaurateurs like \u003ca href=\"http://www.berkeleyside.com/tag/charlie-hallowell/\" target=\"_blank\">Charlie Hallowell\u003c/a> of \u003ca href=\"http://www.berkeleyside.com/tag/pizzaiolo/\" target=\"_blank\">Pizzaiolo\u003c/a>, \u003ca href=\"http://www.berkeleyside.com/tag/penrose/\" target=\"_blank\">Penrose\u003c/a>, and \u003ca href=\"http://www.berkeleyside.com/tag/boot-and-shoe-service/\" target=\"_blank\">Boot and Shoe Service\u003c/a>; \u003ca href=\"http://www.berkeleyside.com/tag/chris-pastena/\" target=\"_blank\">Chris Pastena\u003c/a> of \u003ca href=\"http://www.berkeleyside.com/tag/chop-bar/\" target=\"_blank\">Chop Bar\u003c/a> and \u003ca href=\"http://www.berkeleyside.com/tag/lungomare/\" target=\"_blank\">Lungomare\u003c/a>; Emily and Scott Goldenberg of Caffe 817; and Allison Arevalo and Erin Wade of \u003ca href=\"http://www.berkeleyside.com/tag/homeroom/\" target=\"_blank\">Homeroom\u003c/a> teamed up earlier this year to brainstorm ways to adapt their budget and support other small business owners. “I would characterize the group as being a collection of values-driven restaurant owners, folks who are as concerned about fairness as they are about their own personal financial well-being,” said Bednarz.\u003c/p>\n\u003cp>“We didn’t form it to be an advocacy group or anything, it was more about partnering together,” said Hillyard. “If we wanted to do social marketing stuff together, great. If we just wanted to be a sounding board for ideas for one another, that’s OK too.”\u003c/p>\n\u003cp>The group’s main objective quickly became clear — education. “We needed to educate the public on why prices were going up and why it’s a good thing because everyone is going to be earning more income,” said Hillyard. “Our customers understood why prices went up and it’s fortunately worked out OK so far.” Member restaurants were active supporters of the Lift Up Oakland campaign, and some, like Bednarz and Hillyard, spoke at rallies and wrote letters to members of Oakland’s government.\u003c/p>\n\u003cp>“Speaking for myself personally, and interpreting what I hear and see from other folks, we genuinely give a crap about what is happening in all parts of Oakland,” said Bednarz. “And the last thing that I want to see is small businesses that have been anchors of neighborhoods for decades go out of business because they are unable to adapt to the change in their cost structure.”\u003c/p>\n\u003cp>Barnes, who works for Bednarz, was so impressed with his employer’s involvement that he, too, got involved. He spoke with other neighborhood restaurants and wrote a letter to the new mayor, Libby Schaff, who was been a vocal supporter of the campaign.\u003c/p>\n\u003cp>The best way to help any business struggling with the wage increase, say both Bednarz and Jayaraman, is to continue to support Oakland businesses, especially those in Chinatown. “Visit Chinatown. Remind yourself that it’s full of interesting restaurants and eat at your favorites. Tell the staff that you’d support them even if they raised their prices a bit,” said Bednarz.\u003c/p>\n\u003cfigure id=\"attachment_96358\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/4434448412_6822b151cf_o-720x480.png\" alt=\"Actual Café. \" width=\"720\" height=\"480\" class=\"size-full wp-image-96358\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/4434448412_6822b151cf_o-720x480.png 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/4434448412_6822b151cf_o-720x480-400x267.png 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Actual Café. \u003ccite>(Carrie Cizauskas/Flickr)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Emeryville set for highest minimum wage in country\u003c/h4>\n\u003cp>Only three miles but a world away from Chinatown, Oakland’s neighbor to the west has been having minimum wage debates of its own. Last week, Emeryville’s city council unanimously approved a rapid minimum wage increase — from $9 to over $14 per hour — to occur this July.\u003c/p>\n\u003cp>Unlike Oakland’s wage increase, Emeryville’s change did not come about via an election. Instead, the council members drafted and voted on an ordinance to increase the wage on their own, \u003ca href=\"http://www.berkeleyside.com/tag/berkeley-minimum-wage/\" target=\"_blank\">as they did in Berkeley last year\u003c/a>. The council has accepted public comments at special city council meetings, but did not call for a study of the increase or ask for input other than during meetings.\u003c/p>\n\u003cp>The council’s wage will be, by far, the highest in the country, and it is set to increase almost to $16 per hour by 2019. Despite support for a fair wage, Emeryville small businesses were not supportive of the original proposal, which would have included all businesses with at least 10 employees.\u003c/p>\n\u003cp>Businesses with fewer than 10 employees would be able to take a small business exemption and phase in the wage increase over three years. Those who take the exemption would need to match Oakland’s $12.25 wage on July 1; the following year, wages would rise to $13 per hour and continue to increase by one dollar per hour each year until 2019, when the wage would need to match the rest of Emeryville. After push back from business owners like Hillyard, who has 12 employees at his Emeryville location and wouldn’t have qualified for the exemption, the council has amended its proposal to define a small business at 55 employees.\u003c/p>\n\u003cp>The problem, said Hillyard, who opened his Emeryville Farley’s location in 2010, is that the increase is scheduled to go in effect overnight. Hillyard has already raised his prices at his Emeryville location to match those at Farley’s East, but doesn’t believe he could retain his customers with a second price increase this summer. “There would definitely be customer push back at that point. I don’t know what we would do,” he said. “Even our employees are saying, ‘Wow, that’s a big increase. That would be great, but that might be hard for the business.’”\u003c/p>\n\u003cp>Another concern about Emeryville’s wage increase is that it will shift the economic dynamic between it and other East Bay cities. Employees could theoretically leave jobs in Berkeley or Oakland to go work in Emervyille, while customers could theoretically abandon pricier Emeryville restaurants for others across the border.\u003c/p>\n\u003cp>As Bendarz explained, it isn’t difficult for potential customers to comparison shop. “A latte is a latte and you can get something fairly similar at plenty of places around town. For customers who are particularly price sensitive, it’s not a big trip for them to go two blocks across the Berkeley border and get a similar drink for less,” he said.\u003c/p>\n\u003cp>In an attempt to stymie these concerns, Berkeley mayor \u003ca href=\"http://www.berkeleyside.com/2014/04/22/berkeley-mayor-proposes-east-bay-minimum-wage/\" target=\"_blank\">Tom Bates proposed a coordinated regional minimum wage\u003c/a> last spring between the East Bay cites of Berkeley, Oakland, Emeryville, Alameda, Albany and El Cerrito. Bates suggested that each neighboring city match Oakland’s wage plan in order to level the playing field between regional businesses. “I don’t want to put our businesses at a disadvantage with regard to neighboring communities. It makes sense for everyone to have the same wage,” he told Berkeleyside in April 2014.\u003c/p>\n\u003cp>Likewise, Hillyard is in support of a regional approach to wage increase. “It would make it much easier for businesses. For example, [Bednarz’s] Actual Cafe is a block and half away from our Emeryville store. If they’re paying a wage that’s two dollars less per hour that means their prices are going to be less as well and it puts our Emeryville store in a difficult competitive situation. The increase would be a real challenge for Emeryville small businesses,” he said.\u003c/p>\n\u003cp>As of October, when Berkeley’s minimum wage went up to $10 per hour, \u003ca href=\"http://www.berkeleyside.com/2014/10/01/berkeleys-minimum-wage-is-10-starting-today-oct-1/\" target=\"_blank\">Bates was still advocating for a regional wage\u003c/a>. It may happen without actual legislation. Both Oakland and Emeryville’s wage increases have prompted further discussion on the part of Berkeley City Council’s Labor Commission. Last month, the commission proposed a revised minimum wage law that would increase wages to $16 by 2017 and include language similar to Measure FF regarding service charges. The council is expected to consider the proposal June 9; meanwhile Berkeley’s Minimum Wage Initiative Coalition plans on filing for a ballot measure petition should the proposal fall through, according to the \u003ca href=\"http://www.contracostatimes.com/breaking-news/ci_27775621/berkeley-could-have-16-minimum-wage-by-2017\" target=\"_blank\">Conta Costa Times\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_96359\" class=\"wp-caption aligncenter\" style=\"max-width: 720px\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/05/Chris-Farleys-SF-720x480.jpg\" alt=\"Chris Hillyard, owner of Farley’s on 65th in Emeryville and Farley’s East in Uptown, supported Measure FF, but has concerns about Emeryville’s proposed wage increase. \" width=\"720\" height=\"480\" class=\"size-full wp-image-96359\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/05/Chris-Farleys-SF-720x480.jpg 720w, https://ww2.kqed.org/app/uploads/sites/24/2015/05/Chris-Farleys-SF-720x480-400x267.jpg 400w\" sizes=\"(max-width: 720px) 100vw, 720px\">\u003cfigcaption class=\"wp-caption-text\">Chris Hillyard, owner of Farley’s on 65th in Emeryville and Farley’s East in Uptown, supported Measure FF, but has concerns about Emeryville’s proposed wage increase. \u003ccite>(courtesy Chris Hillyard)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch4>Looking to the future: diners encouraged to get involved\u003c/h4>\n\u003cp>The IRLE is currently researching how Oakland restaurants have adapted to the wage increase. The research center collected data on prices before and after the increase, and, according to Reich, plans to release the research soon.\u003c/p>\n\u003cp>Regardless of the results, Oakland restaurant employees and owners predict more changes to come.\u003c/p>\n\u003cp>“This is such a big picture win for everybody, but any time that there’s a change in the industry, any time there’s a disruption like this, it will have some kind of random effects,” said Porter. “Some might unfortunately take a hit to their business, and that could be me. There’s no guarantee that it won’t be me. So everyone’s a little nervous because you know that when there’s a sea change like this, it’s the roll of the dice could be that it doesn’t work for me short term.”\u003c/p>\n\u003cp>However, added Porter, “The only way to make the business sustainable is for price of going out to reflect the price of paying employees in our community enough to live on.”\u003c/p>\n\u003cp>Pina Kahlo, a barista at the new Speaker Box Café in Uptown, thinks that the minimum wage issue is more complicated. “Minimum wage is going to be minimum wage. The system was never meant to fully take care of [service workers]. It is up to us as individuals to be good neighbors to one another, to see one another as human,” she said.\u003c/p>\n\u003cp>Her solution? Stay active and engaged. “Come out for fair wage, come be with people who also think and want to hang out and make friends too. If you are not out being with people who expressly say ‘I am about this thing,’ then you are the one that’s missing out,” she said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Similarly, Jayaraman encourages diners to continue to participate in the wage discussion. “I would encourage the consuming public to continue to express their support for workers having better wages and working conditions every time they eat out,” she said. “It’s both a way to let restaurants know that customers really value these things, and it’s also a way to express support to employers who are making the change, staying in business, doing it right, not complaining and trying to figure it out. … More than ever we should be supporting Oakland restaurants because they’ve made a huge leap.”\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/96350/east-bay-restaurants-adapt-to-new-minimum-wage","authors":["byline_bayareabites_96350"],"categories":["bayareabites_109","bayareabites_13813","bayareabites_8770","bayareabites_1962","bayareabites_10028","bayareabites_1875"],"tags":["bayareabites_14506","bayareabites_11505","bayareabites_1147"],"featImg":"bayareabites_96352","label":"bayareabites"},"bayareabites_93172":{"type":"posts","id":"bayareabites_93172","meta":{"index":"posts_1591205157","site":"bayareabites","id":"93172","score":null,"sort":[1423782081000]},"guestAuthors":[],"slug":"like-yelp-for-labor-rights-this-app-rates-how-restaurants-treat-workers","title":"Like Yelp For Labor Rights: This App Rates How Restaurants Treat Workers","publishDate":1423782081,"format":"aside","headTitle":"Bay Area Bites | KQED Food","labelTerm":{"site":"bayareabites"},"content":"\u003cfigure id=\"attachment_93173\" class=\"wp-caption aligncenter\" style=\"max-width: 1000px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687.jpg\" alt=\"Customers pick up their orders from a Shake Shack in New York City. It's one of the restaurants whose labor practices are detailed in the ROC United Diners' Guide app. Photo: Andrew Burton/Getty Images\" width=\"1000\" height=\"645\" class=\"size-full wp-image-93173\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687.jpg 1000w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687-400x258.jpg 400w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687-800x516.jpg 800w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687-768x495.jpg 768w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687-320x206.jpg 320w\" sizes=\"(max-width: 1000px) 100vw, 1000px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Customers pick up their orders from a Shake Shack in New York City. It's one of the restaurants whose labor practices are detailed in the ROC United Diners' Guide app. Photo: Andrew Burton/Getty Images\u003c/figcaption>\u003c/figure>\n\u003cp>Poncie Rutsch, \u003ca href=\"http://www.npr.org/blogs/thesalt/2015/02/12/385739008/like-yelp-for-labor-rights-this-app-rates-how-restaurants-treat-workers\">The Salt at NPR Food\u003c/a> (2/12/15)\u003c/p>\n\u003cp>Restaurant servers are three times more likely to \u003ca href=\"http://rocunited.org/tipped-over-the-edge-gender-inequity-in-the-restaurant-industry/\">receive below-poverty-line\u003c/a> pay than the rest of the U.S. workforce. Yet in a world where shoppers fret over cage-free eggs and organic vegetables, how many are also asking how much their favorite restaurant pays its staff?\u003c/p>\n\u003cp>An app from \u003ca href=\"http://rocunited.org/\">Restaurant Opportunities Centers United\u003c/a>, an organization of restaurant workers, employers and customers, aims to encourage diners to ask those kinds of questions about the welfare of industry workers. Think of it as a kind of Yelp for labor rights.\u003c/p>\n\u003cp>The \u003ca href=\"http://rocunited.org/dinersguide/\">ROC United Diners' Guide\u003c/a> app lets diners investigate the policies at restaurants in the U.S. When a user enters her location, the app brings up a few local restaurants and shows whether they pay their staffs a living wage and offer a few basic benefits, like paid sick leave. When the user swipes left, the app shows and evaluates the top 100 chain restaurants in the U.S. – so you can see how they stack up.\u003c/p>\n\u003cp>The app actually rolled out a \u003ca href=\"http://www.npr.org/blogs/thesalt/2012/12/10/166671273/want-to-find-a-restaurant-that-treats-workers-well-theres-an-app-for-that\">couple of years ago,\u003c/a> but an updated version offers a new twist: crowdsourcing. ROC officials hope this component will quickly help expand the list, which currently offers detailed information for only about 150 restaurants.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>If your restaurant of choice isn't on the list, the app encourages you to talk to a manager about the establishment's policies. Users can then create an entry for the restaurant and fill out as much as they know about its wages and practices. The information they submit goes to ROC's staff, who verify the details before adding it to the list of restaurants.\u003c/p>\n\u003cp>That feature isn't just about enlisting diners to do ROC's legwork, says Maria Myotte, the group's national communications coordinator. Every time diners reach out directly to a restaurant manager, they are demonstrating that these issues are important, she says.\u003c/p>\n\u003cp>\"We want it to be less of an easy 'here's what you can use' list and more of an engagement tool,\" Myotte says.\u003c/p>\n\u003cp>Non-chain restaurants listed on the app appear under a category called \"high road.\" They are rated on four different criteria.\u003c/p>\n\u003cfigure id=\"attachment_93174\" class=\"wp-caption aligncenter\" style=\"max-width: 1000px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530.jpg\" alt=\"A screenshot of the app from Restaurant Opportunities Centers United. Photo: Meredith Rizzo/NPR\" width=\"1000\" height=\"666\" class=\"size-full wp-image-93174\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530.jpg 1000w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530-400x266.jpg 400w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530-768x511.jpg 768w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530-320x213.jpg 320w\" sizes=\"(max-width: 1000px) 100vw, 1000px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A screenshot of the app from Restaurant Opportunities Centers United. Photo: Meredith Rizzo/NPR\u003c/figcaption>\u003c/figure>\n\u003cp>The first and second criteria are related to wages: The restaurant must pay its non-tipped workers at least $10 an hour. And tipped staff must earn at least $7 an hour to make the list. That's higher than the federal minimum wage for anyone who earns tips — just $2.13 an hour, a number that hasn't increased since 1991. (As we've reported, some states have \u003ca href=\"http://www.npr.org/blogs/thesalt/2014/02/06/272469496/after-23-years-your-waiter-is-ready-for-a-raise\">higher tip minimum wages\u003c/a>.)\u003c/p>\n\u003cp>Next, the restaurant must give all employees paid sick days. \"Working while sick is so commonplace,\"\u003cstrong> \u003c/strong>says Myotte, because most restaurant workers can't afford to take a day off without pay.\u003c/p>\n\u003cp>\"We have heard from our workers that they face termination or [that] colleagues have been fired for not showing up\" when they are sick, says Myotte.\u003c/p>\n\u003cp>Paid sick days, Myotte says, should really be a no-brainer. Foodborne \u003ca href=\"http://cspinet.org/reports/outbreakalert2014.pdf\">illness moves quickly\u003c/a> through restaurants. Because so many people touch the food, it's easy for germs to spread from restaurant staff to customers.\u003c/p>\n\u003cp>Finally, the restaurant must have a nondiscriminatory program for internal promotion. \"A majority of actual living-wage restaurants are in fine dining,\" says Myotte, \"but they're dominated by white workers, especially white men.\"\u003c/p>\n\u003cp>She says many restaurants have qualified applicants of color already working inside their doors, but in lower-paying positions like busboys or dishwashers. Those workers, she says, often don't get considered when management is looking to fill higher-paying, front-of-the-house positions.\u003c/p>\n\u003cp>\"A lot of the servers are hired externally, even though there's qualified staff right there at the restaurant,\" says Myotte. Hiring from within might help decrease the \u003ca href=\"http://rocunited.org/wp-content/uploads/2013/04/reports_blacks-in-the-industry_brief.pdf\">$4 wage gap\u003c/a> that ROC United found between white and black restaurant employees when they surveyed more than 4,000 workers.\u003c/p>\n\u003cp>I opened up the app here in Washington, D.C., to see who's ethically serving my lunch. Shake Shack appears on the list — but the nearest location, the app tells me, is Grand Central Terminal, in New York City. For the record, the closest one is actually about a 10-minute walk away.\u003c/p>\n\u003cp>Location snafu aside, according to the ROC app, Shake Shack meets all criteria for a \"high road\" restaurant except for one: the wages for tipped workers. But this isn't quite accurate — Shake Shack doesn't have tipped workers, so how could it be underpaying them?\u003c/p>\n\u003cp>\"It's a little wonky on the back end to remove that standard,\" Myotte admits, but she says that ROC United is working on this technical issue. \"What we want to make it do is specify that those restaurants don't have tipped workers.\"\u003c/p>\n\u003cp>Indeed, very few of the restaurants listed meet all four of the \"high road\" criteria. But with enough pressure from consumers, ROC United expects restaurants to shape up.\u003c/p>\n\u003cp>\"There's more than just a few restaurants in cities doing this,\" says Myotte. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp> \u003cem>Copyright 2015 \u003ca href=\"http://www.npr.org/\" target=\"_blank\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n","blocks":[],"excerpt":"Want to know if your favorite restaurant pays its servers a living wage? An app encourages diners to ask before they dig in.","status":"publish","parent":0,"modified":1423782871,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":24,"wordCount":912},"headData":{"title":"Like Yelp For Labor Rights: This App Rates How Restaurants Treat Workers | KQED","description":"Want to know if your favorite restaurant pays its servers a living wage? An app encourages diners to ask before they dig in.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Like Yelp For Labor Rights: This App Rates How Restaurants Treat Workers","datePublished":"2015-02-12T23:01:21.000Z","dateModified":"2015-02-12T23:14:31.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"93172 http://blogs.kqed.org/bayareabites/?p=93172","disqusUrl":"https://ww2.kqed.org/bayareabites/2015/02/12/like-yelp-for-labor-rights-this-app-rates-how-restaurants-treat-workers/","disqusTitle":"Like Yelp For Labor Rights: This App Rates How Restaurants Treat Workers","nprByline":"Poncie Rutsch","nprStoryId":"385739008","nprApiLink":"http://api.npr.org/query?id=385739008&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"http://www.npr.org/blogs/thesalt/2015/02/12/385739008/like-yelp-for-labor-rights-this-app-rates-how-restaurants-treat-workers?ft=nprml&f=385739008","nprRetrievedStory":"1","nprPubDate":"Thu, 12 Feb 2015 16:45:00 -0500","nprStoryDate":"Thu, 12 Feb 2015 16:45:43 -0500","nprLastModifiedDate":"Thu, 12 Feb 2015 16:45:43 -0500","path":"/bayareabites/93172/like-yelp-for-labor-rights-this-app-rates-how-restaurants-treat-workers","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_93173\" class=\"wp-caption aligncenter\" style=\"max-width: 1000px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687.jpg\" alt=\"Customers pick up their orders from a Shake Shack in New York City. It's one of the restaurants whose labor practices are detailed in the ROC United Diners' Guide app. Photo: Andrew Burton/Getty Images\" width=\"1000\" height=\"645\" class=\"size-full wp-image-93173\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687.jpg 1000w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687-400x258.jpg 400w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687-800x516.jpg 800w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687-768x495.jpg 768w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/shake-shack_enl-a02246c49d40189189853882254820982818c94f-e1423781902687-320x206.jpg 320w\" sizes=\"(max-width: 1000px) 100vw, 1000px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Customers pick up their orders from a Shake Shack in New York City. It's one of the restaurants whose labor practices are detailed in the ROC United Diners' Guide app. Photo: Andrew Burton/Getty Images\u003c/figcaption>\u003c/figure>\n\u003cp>Poncie Rutsch, \u003ca href=\"http://www.npr.org/blogs/thesalt/2015/02/12/385739008/like-yelp-for-labor-rights-this-app-rates-how-restaurants-treat-workers\">The Salt at NPR Food\u003c/a> (2/12/15)\u003c/p>\n\u003cp>Restaurant servers are three times more likely to \u003ca href=\"http://rocunited.org/tipped-over-the-edge-gender-inequity-in-the-restaurant-industry/\">receive below-poverty-line\u003c/a> pay than the rest of the U.S. workforce. Yet in a world where shoppers fret over cage-free eggs and organic vegetables, how many are also asking how much their favorite restaurant pays its staff?\u003c/p>\n\u003cp>An app from \u003ca href=\"http://rocunited.org/\">Restaurant Opportunities Centers United\u003c/a>, an organization of restaurant workers, employers and customers, aims to encourage diners to ask those kinds of questions about the welfare of industry workers. Think of it as a kind of Yelp for labor rights.\u003c/p>\n\u003cp>The \u003ca href=\"http://rocunited.org/dinersguide/\">ROC United Diners' Guide\u003c/a> app lets diners investigate the policies at restaurants in the U.S. When a user enters her location, the app brings up a few local restaurants and shows whether they pay their staffs a living wage and offer a few basic benefits, like paid sick leave. When the user swipes left, the app shows and evaluates the top 100 chain restaurants in the U.S. – so you can see how they stack up.\u003c/p>\n\u003cp>The app actually rolled out a \u003ca href=\"http://www.npr.org/blogs/thesalt/2012/12/10/166671273/want-to-find-a-restaurant-that-treats-workers-well-theres-an-app-for-that\">couple of years ago,\u003c/a> but an updated version offers a new twist: crowdsourcing. ROC officials hope this component will quickly help expand the list, which currently offers detailed information for only about 150 restaurants.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>If your restaurant of choice isn't on the list, the app encourages you to talk to a manager about the establishment's policies. Users can then create an entry for the restaurant and fill out as much as they know about its wages and practices. The information they submit goes to ROC's staff, who verify the details before adding it to the list of restaurants.\u003c/p>\n\u003cp>That feature isn't just about enlisting diners to do ROC's legwork, says Maria Myotte, the group's national communications coordinator. Every time diners reach out directly to a restaurant manager, they are demonstrating that these issues are important, she says.\u003c/p>\n\u003cp>\"We want it to be less of an easy 'here's what you can use' list and more of an engagement tool,\" Myotte says.\u003c/p>\n\u003cp>Non-chain restaurants listed on the app appear under a category called \"high road.\" They are rated on four different criteria.\u003c/p>\n\u003cfigure id=\"attachment_93174\" class=\"wp-caption aligncenter\" style=\"max-width: 1000px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530.jpg\" alt=\"A screenshot of the app from Restaurant Opportunities Centers United. Photo: Meredith Rizzo/NPR\" width=\"1000\" height=\"666\" class=\"size-full wp-image-93174\" srcset=\"https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530.jpg 1000w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530-400x266.jpg 400w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530-768x511.jpg 768w, https://ww2.kqed.org/app/uploads/sites/24/2015/02/app-1_enl-36fe49df3f0961f5ddc0c2ccc794b31574cc290c-e1423781979530-320x213.jpg 320w\" sizes=\"(max-width: 1000px) 100vw, 1000px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A screenshot of the app from Restaurant Opportunities Centers United. Photo: Meredith Rizzo/NPR\u003c/figcaption>\u003c/figure>\n\u003cp>The first and second criteria are related to wages: The restaurant must pay its non-tipped workers at least $10 an hour. And tipped staff must earn at least $7 an hour to make the list. That's higher than the federal minimum wage for anyone who earns tips — just $2.13 an hour, a number that hasn't increased since 1991. (As we've reported, some states have \u003ca href=\"http://www.npr.org/blogs/thesalt/2014/02/06/272469496/after-23-years-your-waiter-is-ready-for-a-raise\">higher tip minimum wages\u003c/a>.)\u003c/p>\n\u003cp>Next, the restaurant must give all employees paid sick days. \"Working while sick is so commonplace,\"\u003cstrong> \u003c/strong>says Myotte, because most restaurant workers can't afford to take a day off without pay.\u003c/p>\n\u003cp>\"We have heard from our workers that they face termination or [that] colleagues have been fired for not showing up\" when they are sick, says Myotte.\u003c/p>\n\u003cp>Paid sick days, Myotte says, should really be a no-brainer. Foodborne \u003ca href=\"http://cspinet.org/reports/outbreakalert2014.pdf\">illness moves quickly\u003c/a> through restaurants. Because so many people touch the food, it's easy for germs to spread from restaurant staff to customers.\u003c/p>\n\u003cp>Finally, the restaurant must have a nondiscriminatory program for internal promotion. \"A majority of actual living-wage restaurants are in fine dining,\" says Myotte, \"but they're dominated by white workers, especially white men.\"\u003c/p>\n\u003cp>She says many restaurants have qualified applicants of color already working inside their doors, but in lower-paying positions like busboys or dishwashers. Those workers, she says, often don't get considered when management is looking to fill higher-paying, front-of-the-house positions.\u003c/p>\n\u003cp>\"A lot of the servers are hired externally, even though there's qualified staff right there at the restaurant,\" says Myotte. Hiring from within might help decrease the \u003ca href=\"http://rocunited.org/wp-content/uploads/2013/04/reports_blacks-in-the-industry_brief.pdf\">$4 wage gap\u003c/a> that ROC United found between white and black restaurant employees when they surveyed more than 4,000 workers.\u003c/p>\n\u003cp>I opened up the app here in Washington, D.C., to see who's ethically serving my lunch. Shake Shack appears on the list — but the nearest location, the app tells me, is Grand Central Terminal, in New York City. For the record, the closest one is actually about a 10-minute walk away.\u003c/p>\n\u003cp>Location snafu aside, according to the ROC app, Shake Shack meets all criteria for a \"high road\" restaurant except for one: the wages for tipped workers. But this isn't quite accurate — Shake Shack doesn't have tipped workers, so how could it be underpaying them?\u003c/p>\n\u003cp>\"It's a little wonky on the back end to remove that standard,\" Myotte admits, but she says that ROC United is working on this technical issue. \"What we want to make it do is specify that those restaurants don't have tipped workers.\"\u003c/p>\n\u003cp>Indeed, very few of the restaurants listed meet all four of the \"high road\" criteria. But with enough pressure from consumers, ROC United expects restaurants to shape up.\u003c/p>\n\u003cp>\"There's more than just a few restaurants in cities doing this,\" says Myotte. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp> \u003cem>Copyright 2015 \u003ca href=\"http://www.npr.org/\" target=\"_blank\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/93172/like-yelp-for-labor-rights-this-app-rates-how-restaurants-treat-workers","authors":["byline_bayareabites_93172"],"categories":["bayareabites_1962","bayareabites_4084","bayareabites_1146","bayareabites_10916","bayareabites_2035"],"tags":["bayareabites_12108","bayareabites_14145","bayareabites_14146","bayareabites_11502","bayareabites_11505","bayareabites_14147"],"featImg":"bayareabites_93174","label":"bayareabites"},"bayareabites_78042":{"type":"posts","id":"bayareabites_78042","meta":{"index":"posts_1591205157","site":"bayareabites","id":"78042","score":null,"sort":[1392173064000]},"guestAuthors":[],"slug":"after-23-years-your-waiter-is-ready-for-a-raise","title":"After 23 Years, Your Waiter Is Ready For A Raise","publishDate":1392173064,"format":"aside","headTitle":"Bay Area Bites | KQED Food","labelTerm":{"site":"bayareabites"},"content":"\u003cfigure id=\"attachment_78043\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2014/02/84610821-copy_wide-38e33acc41af52862244b00d5ca756bee04fdf55.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2014/02/84610821-copy_wide-38e33acc41af52862244b00d5ca756bee04fdf55-1024x575.jpg\" alt=\"A Denny's waitress delivers breakfast to customers in Emeryville, Calif. The tipped minimum wage has been stuck at $2.13 since 1991. Photo: Justin Sullivan/Getty Images\" width=\"1024\" height=\"575\" class=\"size-large wp-image-78043\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A Denny's waitress delivers breakfast to customers in Emeryville, Calif. The tipped minimum wage has been stuck at $2.13 since 1991. Photo: Justin Sullivan/Getty Images\u003c/figcaption>\u003c/figure>\n\u003cp>Post by Alan Greenblatt, \u003ca href=\"http://www.npr.org/blogs/thesalt/2014/02/06/272469496/after-23-years-your-waiter-is-ready-for-a-raise\">The Salt at NPR Food\u003c/a> (2/11/14)\u003c/p>\n\u003cp>When Woody Harrelson's character got hired as a bartender on \u003cem>Cheers,\u003c/em> he was so excited, he insisted on working for no more than the minimum wage. \"I'd work like a slave,\" he said, \"and, of course, I'd wash your car.\"\u003c/p>\n\u003cp>Most bar and restaurant workers would prefer to bring home a little more cash. They may be in luck.\u003c/p>\n\u003cp>As part of his plan to raise the minimum wage, President Obama has called for substantially increasing the base wage paid to tipped workers for the first time in decades.\u003c/p>\n\u003cp>\"It's easy to forget the overwhelming majority of tipped employees are low-income workers,\" says \u003ca href=\"http://www.demos.org/amy-traub\">Amy Traub\u003c/a>, senior policy analyst at Demos, a liberal research and advocacy group.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The Democratic bill endorsed by Obama in his State of the Union address last month\u003cstrong> \u003c/strong>would raise the overall minimum wage in stages, from the current $7.25 to $10.10 an hour. Tipped workers — a group that includes waiters, bartenders and busboys — would see their base wages rise to $7.07 an hour.\u003c/p>\n\u003cp>That bill, like all legislation in Congress these days, faces an uncertain future. And its fiercest opposition comes from the National Restaurant Association.\u003c/p>\n\u003cp>For starters, the NRA argues, most tipped workers make more than the federal minimum of $2.13 an hour. And it's true: \u003ca href=\"http://www.dol.gov/whd/state/tipped.htm\" target=\"_blank\">Thirty-one states\u003c/a> mandate higher minimum tipped wages than the feds — though those mandates vary widely. In Arkansas, for example, the minimum is $2.63, while in Washington and Oregon it's more than $9.\u003c/p>\n\u003cp>Even in states that haven't raised the tipped minimum, restaurants are required to make up any shortfall between $2.13 and the regular minimum wage that isn't covered by tips.\u003c/p>\n\u003cp>\"Tipped employees at restaurants are among the highest-paid employees in the establishment, regularly earning $16 to $22 an hour,\" says Scott DeFife, executive vice president for policy and government affairs at the NRA. \"Nobody is making $2.13 an hour,\" he adds.\u003c/p>\n\u003cp>But labor advocates take issue with \u003ca href=\"http://www.restaurant.org/Downloads/PDFs/News-Research/20131112_Min_Wage_Issue_Brief\" target=\"_blank\">the NRA's numbers\u003c/a>. In 2012, the median income for food and beverage serving workers was $8.84 per hour, \u003ca href=\"http://www.bls.gov/ooh/food-preparation-and-serving/food-and-beverage-serving-and-related-workers.htm\" target=\"_blank\">according\u003c/a> to the Bureau of Labor Statistics. The bulk of tipped workers are barely making ends meet, advocates say.\u003c/p>\n\u003cblockquote>\n\u003cdiv align=\"center\">\u003cstrong>States Where Servers Have The Highest Base Wages\u003c/strong>\u003c/div>\n\u003c/blockquote>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2014/02/tipped-minimum-wage-300.png\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2014/02/tipped-minimum-wage-300.png\" alt=\"Tipped minimum wage (per hour)\" width=\"500\" class=\"aligncenter size-full wp-image-78047\">\u003c/a>\u003c/p>\n\u003cblockquote>\u003cp>\u003cstrong>Notes\u003c/strong>\u003cbr>\nNevada's tipped minimum wage is $7.25 for workers who have employer-provided health insurance. It is $8.25 for those without such a benefit.\u003cbr>\nSource: U.S. Department of Labor\u003cbr>\nCredit: NPR\u003c/p>\u003c/blockquote>\n\u003cp>\"\u003ca href=\"http://s1.epi.org/files/page/-/BriefingPaper297.pdf\" target=\"_blank\">Seventy percent are women\u003c/a> who work at places like IHOP and Red Lobster,\" says Saru Jayaraman, co-director of Restaurant Opportunities Centers United, which is pushing for higher wages. \"They use food stamps at double the rate of the rest of the workforce.\"\u003c/p>\n\u003cp>In seven states, mostly in the West, restaurants have to pay their workers the prevailing minimum wage, which is a good deal more than $2.13. Similar requirements are pending in the Pennsylvania and Florida legislatures, while voters will weigh in on the issue through ballot measures in a handful of other states and cities this year.\u003c/p>\n\u003cp>DeFife warns that increasing the base salary of servers and other tipped workers will lead to less hiring, as well as possible tensions in-house. With waiters making more in base salary on top of tips, the nontipped folks in the kitchen might feel shortchanged.\u003c/p>\n\u003cp>\"We already have a disparity between the front of the house and the back of the house,\" DeFife says. \"For proper restaurant operations, you want to keep as good a balance as you can. You don't want to increase the disparity.\"\u003c/p>\n\u003cp>But even if wages do go up, labor proponent Traub argues that employers won't pass on all the costs to their customers.\u003c/p>\n\u003cp>\"Studies have found that when you pay higher wages, employees are more productive and turnover drops,\" she says, \"so you have people who are more experienced and can do a better job.\"\u003c/p>\n\u003cp>Of course, the restaurant industry, the \u003ca href=\"http://www.bls.gov/cps/minwage2012.htm\" target=\"_blank\">leading employer\u003c/a> of minimum-wage workers, always warns about the perils of raising their salaries.\u003c/p>\n\u003cp>But now it's possible to \u003ca href=\"http://www.irle.berkeley.edu/workingpapers/157-07.pdf\" target=\"_blank\">gauge some of\u003cstrong> \u003c/strong>these effects\u003c/a>, thanks to the range of base pay in different states with different rules.\u003c/p>\n\u003cp>\u003ca href=\"http://www.restaurant.org/Restaurant/media/Restaurant/SiteImages/News%20and%20Research/Forecast/2014/SalesGrowthMap2014.jpg\" target=\"_blank\">The NRA's own projections\u003c/a> show that restaurant sales are expected to grow this year at a rate exceeding the national average in at least some of the states with higher base wages, including California, Oregon and Nevada. And overall restaurant \u003ca href=\"http://www.politifact.com/oregon/statements/2013/apr/13/melvin-sickler/has-oregons-higher-minimum-wage-hurt-our-restauran/\" target=\"_blank\">hiring hasn't been driven down\u003c/a> in the Western states that require higher minimum wages (although DeFife says there are complaints from restaurateurs in Oregon and Washington that they've had to cut back).\u003c/p>\n\u003cp>Still, it stands to reason that restaurants will have to pass on some of these higher costs to customers. Opponents of a wage hike argue this will make diners more cautious about eating out.\u003c/p>\n\u003cp>\"The winners are probably going to be the people who get the higher wage, and the losers will be customers who have to pay higher prices and workers who don't get hired by that industry,\" says Michael Strain, a labor economist at the American Enterprise Institute, a conservative think tank.\u003c/p>\n\u003cp>In San Francisco, servers receive one of the highest minimum wages in the country — $10.55 an hour. That's a considerable expense for restaurants that also have to cope with sky-high rents, as well as a local universal health care mandate that leads to surcharges generally of 2 percent on most restaurant bills.\u003c/p>\n\u003cp>\"It's very, very expensive to run any sort of restaurant in San Francisco,\" says Patricia Unterman, a longtime restaurateur and food critic in the city. \"The cost of doing business here, especially for labor-intensive operations like restaurants, almost doesn't pencil out.\"\u003c/p>\n\u003cp>But, she notes, amid the city's thriving, tech-driven economy, people are willing to pay high tabs. San Francisco's restaurant scene is thriving. And, Unterman says, restaurants skimp where they have to, cutting back on niceties like tablecloths and bread and butter, sometimes only serving water when asked.\u003c/p>\n\u003cp>Consumers can be \u003ca href=\"http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2804646/\" target=\"_blank\">sensitive to price changes\u003c/a>, but even in places whose residents aren't as flush as those in San Francisco, a slight rise in their tab isn't likely to deter diners who value the experience or convenience of eating out. A \u003ca href=\"http://laborcenter.berkeley.edu/foodlabor/price_food12.pdf\" target=\"_blank\">study\u003c/a> by University of California researchers suggests any increase in cost passed on to the diner is likely to be marginal at most.\u003c/p>\n\u003cp>In general, when people eat out — especially at a place where they're waited on by servers — they know they're generally going to pay more for the meal than they would if they had cooked at home.\u003c/p>\n\u003cp>Even DeFife concedes that an increase in servers' base pay might not do too much harm, depending on how large it is and how fast it would be implemented.\u003c/p>\n\u003cp>\"We don't talk about job loss too much in the restaurant industry, per se,\" he says. \"The restaurant industry continues to grow.\"\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp> \u003cem>Copyright 2014 \u003ca href=\"http://www.npr.org/\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n","blocks":[],"excerpt":"The tipped minimum wage has been stuck at $2.13 an hour since 1991, but legislation before Congress could finally change that. The restaurant industry says that will cost jobs and drive away diners. But in states where servers, bartenders and other tipped workers already make more than the federal minimum wage, restaurants haven't been hurting.","status":"publish","parent":0,"modified":1392173064,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":34,"wordCount":1225},"headData":{"title":"After 23 Years, Your Waiter Is Ready For A Raise | KQED","description":"The tipped minimum wage has been stuck at $2.13 an hour since 1991, but legislation before Congress could finally change that. The restaurant industry says that will cost jobs and drive away diners. But in states where servers, bartenders and other tipped workers already make more than the federal minimum wage, restaurants haven't been hurting.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"After 23 Years, Your Waiter Is Ready For A Raise","datePublished":"2014-02-12T02:44:24.000Z","dateModified":"2014-02-12T02:44:24.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"78042 http://blogs.kqed.org/bayareabites/?p=78042","disqusUrl":"https://ww2.kqed.org/bayareabites/2014/02/11/after-23-years-your-waiter-is-ready-for-a-raise/","disqusTitle":"After 23 Years, Your Waiter Is Ready For A Raise","nprByline":"Alan Greenblatt","nprStoryId":"272469496","nprApiLink":"http://api.npr.org/query?id=272469496&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"http://www.npr.org/blogs/thesalt/2014/02/06/272469496/after-23-years-your-waiter-is-ready-for-a-raise?ft=3&f=272469496","nprRetrievedStory":"1","nprPubDate":"Tue, 11 Feb 2014 20:32:00 -0500","nprStoryDate":"Tue, 11 Feb 2014 15:22:00 -0500","nprLastModifiedDate":"Tue, 11 Feb 2014 20:32:03 -0500","path":"/bayareabites/78042/after-23-years-your-waiter-is-ready-for-a-raise","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_78043\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2014/02/84610821-copy_wide-38e33acc41af52862244b00d5ca756bee04fdf55.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2014/02/84610821-copy_wide-38e33acc41af52862244b00d5ca756bee04fdf55-1024x575.jpg\" alt=\"A Denny's waitress delivers breakfast to customers in Emeryville, Calif. The tipped minimum wage has been stuck at $2.13 since 1991. Photo: Justin Sullivan/Getty Images\" width=\"1024\" height=\"575\" class=\"size-large wp-image-78043\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A Denny's waitress delivers breakfast to customers in Emeryville, Calif. The tipped minimum wage has been stuck at $2.13 since 1991. Photo: Justin Sullivan/Getty Images\u003c/figcaption>\u003c/figure>\n\u003cp>Post by Alan Greenblatt, \u003ca href=\"http://www.npr.org/blogs/thesalt/2014/02/06/272469496/after-23-years-your-waiter-is-ready-for-a-raise\">The Salt at NPR Food\u003c/a> (2/11/14)\u003c/p>\n\u003cp>When Woody Harrelson's character got hired as a bartender on \u003cem>Cheers,\u003c/em> he was so excited, he insisted on working for no more than the minimum wage. \"I'd work like a slave,\" he said, \"and, of course, I'd wash your car.\"\u003c/p>\n\u003cp>Most bar and restaurant workers would prefer to bring home a little more cash. They may be in luck.\u003c/p>\n\u003cp>As part of his plan to raise the minimum wage, President Obama has called for substantially increasing the base wage paid to tipped workers for the first time in decades.\u003c/p>\n\u003cp>\"It's easy to forget the overwhelming majority of tipped employees are low-income workers,\" says \u003ca href=\"http://www.demos.org/amy-traub\">Amy Traub\u003c/a>, senior policy analyst at Demos, a liberal research and advocacy group.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The Democratic bill endorsed by Obama in his State of the Union address last month\u003cstrong> \u003c/strong>would raise the overall minimum wage in stages, from the current $7.25 to $10.10 an hour. Tipped workers — a group that includes waiters, bartenders and busboys — would see their base wages rise to $7.07 an hour.\u003c/p>\n\u003cp>That bill, like all legislation in Congress these days, faces an uncertain future. And its fiercest opposition comes from the National Restaurant Association.\u003c/p>\n\u003cp>For starters, the NRA argues, most tipped workers make more than the federal minimum of $2.13 an hour. And it's true: \u003ca href=\"http://www.dol.gov/whd/state/tipped.htm\" target=\"_blank\">Thirty-one states\u003c/a> mandate higher minimum tipped wages than the feds — though those mandates vary widely. In Arkansas, for example, the minimum is $2.63, while in Washington and Oregon it's more than $9.\u003c/p>\n\u003cp>Even in states that haven't raised the tipped minimum, restaurants are required to make up any shortfall between $2.13 and the regular minimum wage that isn't covered by tips.\u003c/p>\n\u003cp>\"Tipped employees at restaurants are among the highest-paid employees in the establishment, regularly earning $16 to $22 an hour,\" says Scott DeFife, executive vice president for policy and government affairs at the NRA. \"Nobody is making $2.13 an hour,\" he adds.\u003c/p>\n\u003cp>But labor advocates take issue with \u003ca href=\"http://www.restaurant.org/Downloads/PDFs/News-Research/20131112_Min_Wage_Issue_Brief\" target=\"_blank\">the NRA's numbers\u003c/a>. In 2012, the median income for food and beverage serving workers was $8.84 per hour, \u003ca href=\"http://www.bls.gov/ooh/food-preparation-and-serving/food-and-beverage-serving-and-related-workers.htm\" target=\"_blank\">according\u003c/a> to the Bureau of Labor Statistics. The bulk of tipped workers are barely making ends meet, advocates say.\u003c/p>\n\u003cblockquote>\n\u003cdiv align=\"center\">\u003cstrong>States Where Servers Have The Highest Base Wages\u003c/strong>\u003c/div>\n\u003c/blockquote>\n\u003cp>\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2014/02/tipped-minimum-wage-300.png\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2014/02/tipped-minimum-wage-300.png\" alt=\"Tipped minimum wage (per hour)\" width=\"500\" class=\"aligncenter size-full wp-image-78047\">\u003c/a>\u003c/p>\n\u003cblockquote>\u003cp>\u003cstrong>Notes\u003c/strong>\u003cbr>\nNevada's tipped minimum wage is $7.25 for workers who have employer-provided health insurance. It is $8.25 for those without such a benefit.\u003cbr>\nSource: U.S. Department of Labor\u003cbr>\nCredit: NPR\u003c/p>\u003c/blockquote>\n\u003cp>\"\u003ca href=\"http://s1.epi.org/files/page/-/BriefingPaper297.pdf\" target=\"_blank\">Seventy percent are women\u003c/a> who work at places like IHOP and Red Lobster,\" says Saru Jayaraman, co-director of Restaurant Opportunities Centers United, which is pushing for higher wages. \"They use food stamps at double the rate of the rest of the workforce.\"\u003c/p>\n\u003cp>In seven states, mostly in the West, restaurants have to pay their workers the prevailing minimum wage, which is a good deal more than $2.13. Similar requirements are pending in the Pennsylvania and Florida legislatures, while voters will weigh in on the issue through ballot measures in a handful of other states and cities this year.\u003c/p>\n\u003cp>DeFife warns that increasing the base salary of servers and other tipped workers will lead to less hiring, as well as possible tensions in-house. With waiters making more in base salary on top of tips, the nontipped folks in the kitchen might feel shortchanged.\u003c/p>\n\u003cp>\"We already have a disparity between the front of the house and the back of the house,\" DeFife says. \"For proper restaurant operations, you want to keep as good a balance as you can. You don't want to increase the disparity.\"\u003c/p>\n\u003cp>But even if wages do go up, labor proponent Traub argues that employers won't pass on all the costs to their customers.\u003c/p>\n\u003cp>\"Studies have found that when you pay higher wages, employees are more productive and turnover drops,\" she says, \"so you have people who are more experienced and can do a better job.\"\u003c/p>\n\u003cp>Of course, the restaurant industry, the \u003ca href=\"http://www.bls.gov/cps/minwage2012.htm\" target=\"_blank\">leading employer\u003c/a> of minimum-wage workers, always warns about the perils of raising their salaries.\u003c/p>\n\u003cp>But now it's possible to \u003ca href=\"http://www.irle.berkeley.edu/workingpapers/157-07.pdf\" target=\"_blank\">gauge some of\u003cstrong> \u003c/strong>these effects\u003c/a>, thanks to the range of base pay in different states with different rules.\u003c/p>\n\u003cp>\u003ca href=\"http://www.restaurant.org/Restaurant/media/Restaurant/SiteImages/News%20and%20Research/Forecast/2014/SalesGrowthMap2014.jpg\" target=\"_blank\">The NRA's own projections\u003c/a> show that restaurant sales are expected to grow this year at a rate exceeding the national average in at least some of the states with higher base wages, including California, Oregon and Nevada. And overall restaurant \u003ca href=\"http://www.politifact.com/oregon/statements/2013/apr/13/melvin-sickler/has-oregons-higher-minimum-wage-hurt-our-restauran/\" target=\"_blank\">hiring hasn't been driven down\u003c/a> in the Western states that require higher minimum wages (although DeFife says there are complaints from restaurateurs in Oregon and Washington that they've had to cut back).\u003c/p>\n\u003cp>Still, it stands to reason that restaurants will have to pass on some of these higher costs to customers. Opponents of a wage hike argue this will make diners more cautious about eating out.\u003c/p>\n\u003cp>\"The winners are probably going to be the people who get the higher wage, and the losers will be customers who have to pay higher prices and workers who don't get hired by that industry,\" says Michael Strain, a labor economist at the American Enterprise Institute, a conservative think tank.\u003c/p>\n\u003cp>In San Francisco, servers receive one of the highest minimum wages in the country — $10.55 an hour. That's a considerable expense for restaurants that also have to cope with sky-high rents, as well as a local universal health care mandate that leads to surcharges generally of 2 percent on most restaurant bills.\u003c/p>\n\u003cp>\"It's very, very expensive to run any sort of restaurant in San Francisco,\" says Patricia Unterman, a longtime restaurateur and food critic in the city. \"The cost of doing business here, especially for labor-intensive operations like restaurants, almost doesn't pencil out.\"\u003c/p>\n\u003cp>But, she notes, amid the city's thriving, tech-driven economy, people are willing to pay high tabs. San Francisco's restaurant scene is thriving. And, Unterman says, restaurants skimp where they have to, cutting back on niceties like tablecloths and bread and butter, sometimes only serving water when asked.\u003c/p>\n\u003cp>Consumers can be \u003ca href=\"http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2804646/\" target=\"_blank\">sensitive to price changes\u003c/a>, but even in places whose residents aren't as flush as those in San Francisco, a slight rise in their tab isn't likely to deter diners who value the experience or convenience of eating out. A \u003ca href=\"http://laborcenter.berkeley.edu/foodlabor/price_food12.pdf\" target=\"_blank\">study\u003c/a> by University of California researchers suggests any increase in cost passed on to the diner is likely to be marginal at most.\u003c/p>\n\u003cp>In general, when people eat out — especially at a place where they're waited on by servers — they know they're generally going to pay more for the meal than they would if they had cooked at home.\u003c/p>\n\u003cp>Even DeFife concedes that an increase in servers' base pay might not do too much harm, depending on how large it is and how fast it would be implemented.\u003c/p>\n\u003cp>\"We don't talk about job loss too much in the restaurant industry, per se,\" he says. \"The restaurant industry continues to grow.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp> \u003cem>Copyright 2014 \u003ca href=\"http://www.npr.org/\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/78042/after-23-years-your-waiter-is-ready-for-a-raise","authors":["byline_bayareabites_78042"],"categories":["bayareabites_1962","bayareabites_1146","bayareabites_10916","bayareabites_2035"],"tags":["bayareabites_895","bayareabites_11502","bayareabites_11505","bayareabites_11506","bayareabites_13062","bayareabites_13061","bayareabites_10921","bayareabites_13064","bayareabites_13063"],"featImg":"bayareabites_78057","label":"bayareabites"},"bayareabites_75227":{"type":"posts","id":"bayareabites_75227","meta":{"index":"posts_1591205157","site":"bayareabites","id":"75227","score":null,"sort":[1387483205000]},"guestAuthors":[],"slug":"the-top-issues-that-consumed-the-food-world-this-year","title":"The Top Issues That Consumed the Food World This Year","publishDate":1387483205,"format":"aside","headTitle":"Bay Area Bites | KQED Food","labelTerm":{"site":"bayareabites"},"content":"\u003cfigure id=\"attachment_75231\" class=\"wp-caption aligncenter\" style=\"max-width: 655px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/167314167.jpg\">\u003cimg class=\"size-full wp-image-75231\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/167314167.jpg\" alt=\"These were some of the top stories and issues that rocked the food world in 2013. Photo: Thinkstock\" width=\"655\" height=\"535\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">These were some of the top stories and issues that rocked the food world in 2013. Photo: Thinkstock\u003c/figcaption>\u003c/figure>\n\u003cp>Everyone loves to eat and this year was no exception. But, with technology changing the way we eat and the economy continuing to affect what we eat, some old trends fell by the wayside in 2013 and new issues rose to the surface. Most importantly, we began to finally act on hot topics like antibiotics in our meat and fast food workers' wages. Here were some of the trends that consumed the food industry this year and what we to expect in 2014.\u003c/p>\n\u003cfigure id=\"attachment_73032\" class=\"wp-caption aligncenter\" style=\"max-width: 437px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/scentee.jpg\">\u003cimg class=\" wp-image-73032 \" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/scentee.jpg\" alt=\"Simply plug the Scentee device into your iPhone jack and let the scent of grilled meat waft your way.\" width=\"437\" height=\"327\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Simply plug the Scentee device into your iPhone jack and let the scent of grilled meat waft your way.\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Food Technology\u003c/strong>: Perhaps it's no surprise, here in the heart of our nation's technology capitol, that even our food got a tech-makeover this year. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/18/smell-technologies/\" target=\"_blank\">Smell technologies\u003c/a> -- which recreate the smells of foods through \u003ca href=\"http://pogueman.tumblr.com/post/69837669173/the-worlds-first-smell-enabled-iphone-app\" target=\"_blank\">smart phones\u003c/a>, computers and TVs -- made a big jump forward this year. With smell playing such a large part in our eating experience, scent tech is integral in creating artifical foods that may not be what they appear -- \u003ca href=\"http://gizmodo.com/5608457/meta-cookie-uses-virtual-reality-to-make-a-cookie-taste-like-anything-you-want\" target=\"_blank\">such as a cookie wafer that tastes like steak\u003c/a>.\u003c/p>\n\u003cp>Many of the technologies that came out of Silicon Valley start-ups this year, though, were more mundane than steak cookies. Food is a big business and there's a booming industry in connecting people with that food. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/12/12/food-delivery-technology/\" target=\"_blank\">New food delivery tech companies\u003c/a> launched around-the-clock this year, each trying to find the best (and most profitable) way to deliver food or get take-out without ever leaving your house. Eating is still the domain of the non-robotic, for now, but virtually everything else can be done via the internet. There are apps to pair you with chefs and apps to find you recipes and apps to bring the food to your front door. In 2014, you may not have to be involved in any part of the food experience: Eating? There's an app for that.\u003c/p>\n\u003cfigure id=\"attachment_72054\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/food-waste640.jpg\">\u003cimg class=\"size-full wp-image-72054\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/food-waste640.jpg\" alt=\"Food Shift has launched ads educating people about how much of the pie is being thrown away. Photo: Food Shift\" width=\"640\" height=\"403\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Food Shift has launched ads educating people about how much of the pie is being thrown away. Photo: Food Shift\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Food Waste\u003c/strong>: But, as long as we're not robots, we'll still generate waste -- a lot of waste. \u003ca href=\"http://blogs.kqed.org/lowdown/2013/12/13/food-waste\" target=\"_blank\">Nearly 40% of our food is currently being wasted\u003c/a>. This year, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/10/14/food-waste/\" target=\"_blank\">a number of organizations stepped forward to both reduce that amount of food waste and to re-purpose what is thrown away\u003c/a>. Places like \u003ca href=\"http://foodshift.net/\" target=\"_blank\">Food Shift\u003c/a> and \u003ca href=\"http://www.foodrunners.org/\" target=\"_blank\">Food Runners\u003c/a> are taking leftovers from grocery stores and restaurants to those who need the food. Gleaning, the practice of picking up perfectly good food that's left on the ground after a harvest, \u003ca href=\"http://ww2.kqed.org/news/2013/10/08/getting-harvest-to-the-hungry/\" target=\"_blank\">continued to gain traction around the state and country\u003c/a>, going mainstream in 2013. And, of course, there's an app for that too. \u003ca href=\"http://www.nydailynews.com/life-style/eats/new-app-lets-swap-leftover-food-strangers-article-1.1422837\" target=\"_blank\">The leftover app\u003c/a> lets people swap leftovers instead of simply throwing them out. There's still plenty of leftovers left, though, to tackle in 2014.\u003c/p>\n\u003cfigure id=\"attachment_66825\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/07/fast-food-strike.jpg\">\u003cimg class=\"size-large wp-image-66825\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/07/fast-food-strike-1024x574.jpg\" alt=\"People gathered outside a Wendy's restaurant in New York City on Monday as part of a one-day strike calling for higher wages for fast-food workers. Photo: Justin Lane/EPA/Landov\" width=\"1024\" height=\"574\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">People gathered outside a Wendy's restaurant in New York City as part of a strike calling for higher wages for fast-food workers. Photo: Justin Lane/EPA/Landov\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Minimum Wage, Food Stamps and Poverty\u003c/strong>: The strikes that swept through fast food restaurants this year left many starting to think about the real cost of their cheap food. In April, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/04/05/nycs-fast-food-workers-strike-demand-living-wages/\" target=\"_blank\">workers staged a strike in New York, where the minimum wage is $7.25\u003c/a>. In July, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/07/30/fast-food-strikers-demand-a-living-wage/\" target=\"_blank\">more fast food employees joined the picket lines to demand a living wage\u003c/a>. Earlier this month, workers staged one of the biggest protests yet, focused on the fact that McDonald's has bought luxury jets for its executives but can't afford a raise in the minimum wage for its employees. The movement this year brought attention to (and some action focused on) the cost of supporting people who make less than a living wage. Studies found that over 50% of fast food workers are enrolled in public assistance programs, such as food stamps, in order to afford the very food they serve. It turns out that cheap food isn't really as cheap as it seems. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/10/16/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers/\" target=\"_blank\">Taxpayers pay $7 billion to support those fast food workers\u003c/a>.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The people who rely on those programs faced some hits after \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/18/see-how-food-stamp-cuts-are-hitting-across-the-u-s/\" target=\"_blank\">a $5 billion cut to food stamps went into effect on Nov. 1\u003c/a>. With more budget cuts being debated, the food stamps program and how poor citizens can afford to feed their families came to the front of the nation's attention. It even raised questions about \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/12/09/kqeds-forum-should-food-stamp-users-be-blocked-from-buying-junk-food/\" target=\"_blank\">what people should be allowed to buy with food stamps\u003c/a> and how they can find fresh produce in \u003ca href=\"http://ww2.kqed.org/bayareabites/2011/12/03/kqed-forum-eating-healthy-in-a-food-desert/\" target=\"_blank\">food deserts\u003c/a> -- questions without answers yet.\u003c/p>\n\u003cfigure id=\"attachment_70290\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/09/antibioticspigs2.jpg\">\u003cimg class=\"size-large wp-image-70290\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/09/antibioticspigs2-1024x767.jpg\" alt=\"These pigs in Iowa, newly weaned from their mothers, get antibiotics in their water to ward off bacterial infection. Photo: Dan Charles/NPR\" width=\"1024\" height=\"767\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">These pigs in Iowa, newly weaned from their mothers, get antibiotics in their water to ward off bacterial infection. Photo: Dan Charles/NPR\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Hormones and Antibiotics\u003c/strong>: The use of animal antibiotics on farms has been around for years -- and, arguably, getting worse most of that time. But, this year was the year that people decided enough was enough. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/07/11/are-antibiotics-on-the-farm-risky-business/\" target=\"_blank\">There was a rise in awareness of the dangers of too many antibiotics\u003c/a>, both for the animals and for people's health after eating the animals. Too many strong antibiotics have created \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/05/01/antibiotic-resistant-bugs-turn-up-again-in-turkey-meat/\" target=\"_blank\">antibiotic-resistance bacteria\u003c/a> that are increasingly turning up in chickens, turkeys, pigs and cows. Growth-promoting drugs can also balloon up animals, making them full of meat to sell, but unable to walk while they're alive. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/05/why-are-pig-farmers-still-using-growth-promoting-drugs/\" target=\"_blank\">The FDA began putting pressure on drug companies to pull their strongest antibiotics and on farmers to voluntarily stop using certain drugs\u003c/a>. Last week, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/12/12/drug-companies-accept-fda-plan-to-phase-out-some-animal-antibiotic-uses/\" target=\"_blank\">the two biggest veterinary drug companies agreed to follow FDA advice and phase out some drugs used for growth promotion\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_63379\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/06/gmosoybeans.jpg\">\u003cimg class=\"size-large wp-image-63379\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/06/gmosoybeans-1024x767.jpg\" alt=\"A farmer holds Monsanto's Roundup Ready soybean seeds at his family farm in Bunceton, Mo. Photo: Dan Gill/AP\" width=\"1024\" height=\"767\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A farmer holds Monsanto's Roundup Ready soybean seeds at his family farm in Bunceton, Mo. Photo: Dan Gill/AP\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>GMO & Labeling:\u003c/strong> The genetically-modified food debate didn't get resolved this year, but it hit some key points around the country. As more people considered what the labels on their food should say, initiatives to label GMOs went to the voters. In November, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/07/washington-state-says-no-to-gmo-labels/\" target=\"_blank\">Washington voted 'No' on GMO labeling\u003c/a>. A number of other initiatives are expected to be on other state ballots in the next year. Advocates say people have the right to know what's in their food. But, opinions on GMOs are still mixed. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/05/15/for-supreme-court-monsantos-win-was-more-about-patents-than-seeds/\" target=\"_blank\">A Supreme Court ruling in May sided with seed manufacturer Monsanto\u003c/a>, arguing that farmers who used genetically-modified seeds for multiple plantings violate copyright. As farmers move away from GMO seeds, particularly since the seeds haven't always worked as well as promised and in an effort to disconnect from large companies like Monsanto, \u003ca href=\"http://modernfarmer.com/2013/12/post-gmo-economy/\" target=\"_blank\">they're looking for natural solutions to what GMOs promised\u003c/a>. What will the post-GMO economy look like?\u003c/p>\n\u003cp>But, for the conscientious foodie, GMOs aren't the only thing to worry about in their food. The labels tell consumers lots of information -- where it's from, how much fat it has, how many calories or, potentially, what antibiotics were used. The debate over that information is only getting started. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/14/whats-the-most-important-thing-food-labels-should-tell-us/\" target=\"_blank\">What should our labels tell us\u003c/a>?\u003c/p>\n\u003cfigure id=\"attachment_74841\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/schoollunch-503876b2756a4c46fb21b6d11427e193962a9fee.jpg\">\u003cimg class=\"size-large wp-image-74841\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/schoollunch-503876b2756a4c46fb21b6d11427e193962a9fee-1024x768.jpg\" alt=\"Students at Lowell High School in Michigan sit down for lunch. Shorter lunch breaks mean that many kids don't get enough time to eat and socialize. Photo: Emily Zoladz/Landov\" width=\"1024\" height=\"768\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Students at Lowell High School in Michigan sit down for lunch. Shorter lunch breaks mean that many kids don't get enough time to eat and socialize. Photo: Emily Zoladz/Landov\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>School Lunches:\u003c/strong> Every parent wants their kids to eat well, so it's no surprise that school lunches remained a hot topic again in 2013. In July, \u003ca href=\"http://blogs.kqed.org/stateofhealth/2013/07/12/drink-up-schools-must-provide-more-water-during-meals/\" target=\"_blank\">a new federal regulation required that schools provide drinking water at breakfast for students\u003c/a>, helping to address growing concern about sugary soft drinks. Traditional worries about nutrition guidelines met with new angst about GMOs, antibiotics and leftovers -- some of the food waste nonprofits are taking leftover food from school lunch programs for re-use. But, now, parents have something else to worry about too: how much time kids have to eat. With school schedules getting condensed and budgets taking a hit, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/12/06/these-days-school-lunch-hours-are-more-like-15-minutes/\" target=\"_blank\">lunch is getting shorter\u003c/a>. \u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>A popular photo spread showed us \u003ca href=\"http://www.good.is/posts/this-is-what-america-s-school-lunches-really-look-like\" target=\"_blank\">what school lunches really looked like this year\u003c/a>. What will they look like next year?\u003c/p>\n\u003ch3>What were some of the biggest trends this year that we missed?\u003c/h3>\n\n","blocks":[],"excerpt":"From GMOs to apps on your phone, these were some of the biggest food stories and trends in 2013.","status":"publish","parent":0,"modified":1546992853,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":13,"wordCount":1374},"headData":{"title":"The Top Issues That Consumed the Food World This Year | KQED","description":"From GMOs to apps on your phone, these were some of the biggest food stories and trends in 2013.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"The Top Issues That Consumed the Food World This Year","datePublished":"2013-12-19T20:00:05.000Z","dateModified":"2019-01-09T00:14:13.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"75227 http://blogs.kqed.org/bayareabites/?p=75227","disqusUrl":"https://ww2.kqed.org/bayareabites/2013/12/19/the-top-issues-that-consumed-the-food-world-this-year/","disqusTitle":"The Top Issues That Consumed the Food World This Year","path":"/bayareabites/75227/the-top-issues-that-consumed-the-food-world-this-year","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_75231\" class=\"wp-caption aligncenter\" style=\"max-width: 655px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/167314167.jpg\">\u003cimg class=\"size-full wp-image-75231\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/167314167.jpg\" alt=\"These were some of the top stories and issues that rocked the food world in 2013. Photo: Thinkstock\" width=\"655\" height=\"535\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">These were some of the top stories and issues that rocked the food world in 2013. Photo: Thinkstock\u003c/figcaption>\u003c/figure>\n\u003cp>Everyone loves to eat and this year was no exception. But, with technology changing the way we eat and the economy continuing to affect what we eat, some old trends fell by the wayside in 2013 and new issues rose to the surface. Most importantly, we began to finally act on hot topics like antibiotics in our meat and fast food workers' wages. Here were some of the trends that consumed the food industry this year and what we to expect in 2014.\u003c/p>\n\u003cfigure id=\"attachment_73032\" class=\"wp-caption aligncenter\" style=\"max-width: 437px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/scentee.jpg\">\u003cimg class=\" wp-image-73032 \" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/scentee.jpg\" alt=\"Simply plug the Scentee device into your iPhone jack and let the scent of grilled meat waft your way.\" width=\"437\" height=\"327\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Simply plug the Scentee device into your iPhone jack and let the scent of grilled meat waft your way.\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Food Technology\u003c/strong>: Perhaps it's no surprise, here in the heart of our nation's technology capitol, that even our food got a tech-makeover this year. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/18/smell-technologies/\" target=\"_blank\">Smell technologies\u003c/a> -- which recreate the smells of foods through \u003ca href=\"http://pogueman.tumblr.com/post/69837669173/the-worlds-first-smell-enabled-iphone-app\" target=\"_blank\">smart phones\u003c/a>, computers and TVs -- made a big jump forward this year. With smell playing such a large part in our eating experience, scent tech is integral in creating artifical foods that may not be what they appear -- \u003ca href=\"http://gizmodo.com/5608457/meta-cookie-uses-virtual-reality-to-make-a-cookie-taste-like-anything-you-want\" target=\"_blank\">such as a cookie wafer that tastes like steak\u003c/a>.\u003c/p>\n\u003cp>Many of the technologies that came out of Silicon Valley start-ups this year, though, were more mundane than steak cookies. Food is a big business and there's a booming industry in connecting people with that food. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/12/12/food-delivery-technology/\" target=\"_blank\">New food delivery tech companies\u003c/a> launched around-the-clock this year, each trying to find the best (and most profitable) way to deliver food or get take-out without ever leaving your house. Eating is still the domain of the non-robotic, for now, but virtually everything else can be done via the internet. There are apps to pair you with chefs and apps to find you recipes and apps to bring the food to your front door. In 2014, you may not have to be involved in any part of the food experience: Eating? There's an app for that.\u003c/p>\n\u003cfigure id=\"attachment_72054\" class=\"wp-caption aligncenter\" style=\"max-width: 640px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/food-waste640.jpg\">\u003cimg class=\"size-full wp-image-72054\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/food-waste640.jpg\" alt=\"Food Shift has launched ads educating people about how much of the pie is being thrown away. Photo: Food Shift\" width=\"640\" height=\"403\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Food Shift has launched ads educating people about how much of the pie is being thrown away. Photo: Food Shift\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Food Waste\u003c/strong>: But, as long as we're not robots, we'll still generate waste -- a lot of waste. \u003ca href=\"http://blogs.kqed.org/lowdown/2013/12/13/food-waste\" target=\"_blank\">Nearly 40% of our food is currently being wasted\u003c/a>. This year, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/10/14/food-waste/\" target=\"_blank\">a number of organizations stepped forward to both reduce that amount of food waste and to re-purpose what is thrown away\u003c/a>. Places like \u003ca href=\"http://foodshift.net/\" target=\"_blank\">Food Shift\u003c/a> and \u003ca href=\"http://www.foodrunners.org/\" target=\"_blank\">Food Runners\u003c/a> are taking leftovers from grocery stores and restaurants to those who need the food. Gleaning, the practice of picking up perfectly good food that's left on the ground after a harvest, \u003ca href=\"http://ww2.kqed.org/news/2013/10/08/getting-harvest-to-the-hungry/\" target=\"_blank\">continued to gain traction around the state and country\u003c/a>, going mainstream in 2013. And, of course, there's an app for that too. \u003ca href=\"http://www.nydailynews.com/life-style/eats/new-app-lets-swap-leftover-food-strangers-article-1.1422837\" target=\"_blank\">The leftover app\u003c/a> lets people swap leftovers instead of simply throwing them out. There's still plenty of leftovers left, though, to tackle in 2014.\u003c/p>\n\u003cfigure id=\"attachment_66825\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/07/fast-food-strike.jpg\">\u003cimg class=\"size-large wp-image-66825\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/07/fast-food-strike-1024x574.jpg\" alt=\"People gathered outside a Wendy's restaurant in New York City on Monday as part of a one-day strike calling for higher wages for fast-food workers. Photo: Justin Lane/EPA/Landov\" width=\"1024\" height=\"574\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">People gathered outside a Wendy's restaurant in New York City as part of a strike calling for higher wages for fast-food workers. Photo: Justin Lane/EPA/Landov\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Minimum Wage, Food Stamps and Poverty\u003c/strong>: The strikes that swept through fast food restaurants this year left many starting to think about the real cost of their cheap food. In April, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/04/05/nycs-fast-food-workers-strike-demand-living-wages/\" target=\"_blank\">workers staged a strike in New York, where the minimum wage is $7.25\u003c/a>. In July, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/07/30/fast-food-strikers-demand-a-living-wage/\" target=\"_blank\">more fast food employees joined the picket lines to demand a living wage\u003c/a>. Earlier this month, workers staged one of the biggest protests yet, focused on the fact that McDonald's has bought luxury jets for its executives but can't afford a raise in the minimum wage for its employees. The movement this year brought attention to (and some action focused on) the cost of supporting people who make less than a living wage. Studies found that over 50% of fast food workers are enrolled in public assistance programs, such as food stamps, in order to afford the very food they serve. It turns out that cheap food isn't really as cheap as it seems. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/10/16/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers/\" target=\"_blank\">Taxpayers pay $7 billion to support those fast food workers\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The people who rely on those programs faced some hits after \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/18/see-how-food-stamp-cuts-are-hitting-across-the-u-s/\" target=\"_blank\">a $5 billion cut to food stamps went into effect on Nov. 1\u003c/a>. With more budget cuts being debated, the food stamps program and how poor citizens can afford to feed their families came to the front of the nation's attention. It even raised questions about \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/12/09/kqeds-forum-should-food-stamp-users-be-blocked-from-buying-junk-food/\" target=\"_blank\">what people should be allowed to buy with food stamps\u003c/a> and how they can find fresh produce in \u003ca href=\"http://ww2.kqed.org/bayareabites/2011/12/03/kqed-forum-eating-healthy-in-a-food-desert/\" target=\"_blank\">food deserts\u003c/a> -- questions without answers yet.\u003c/p>\n\u003cfigure id=\"attachment_70290\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/09/antibioticspigs2.jpg\">\u003cimg class=\"size-large wp-image-70290\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/09/antibioticspigs2-1024x767.jpg\" alt=\"These pigs in Iowa, newly weaned from their mothers, get antibiotics in their water to ward off bacterial infection. Photo: Dan Charles/NPR\" width=\"1024\" height=\"767\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">These pigs in Iowa, newly weaned from their mothers, get antibiotics in their water to ward off bacterial infection. Photo: Dan Charles/NPR\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>Hormones and Antibiotics\u003c/strong>: The use of animal antibiotics on farms has been around for years -- and, arguably, getting worse most of that time. But, this year was the year that people decided enough was enough. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/07/11/are-antibiotics-on-the-farm-risky-business/\" target=\"_blank\">There was a rise in awareness of the dangers of too many antibiotics\u003c/a>, both for the animals and for people's health after eating the animals. Too many strong antibiotics have created \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/05/01/antibiotic-resistant-bugs-turn-up-again-in-turkey-meat/\" target=\"_blank\">antibiotic-resistance bacteria\u003c/a> that are increasingly turning up in chickens, turkeys, pigs and cows. Growth-promoting drugs can also balloon up animals, making them full of meat to sell, but unable to walk while they're alive. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/05/why-are-pig-farmers-still-using-growth-promoting-drugs/\" target=\"_blank\">The FDA began putting pressure on drug companies to pull their strongest antibiotics and on farmers to voluntarily stop using certain drugs\u003c/a>. Last week, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/12/12/drug-companies-accept-fda-plan-to-phase-out-some-animal-antibiotic-uses/\" target=\"_blank\">the two biggest veterinary drug companies agreed to follow FDA advice and phase out some drugs used for growth promotion\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_63379\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/06/gmosoybeans.jpg\">\u003cimg class=\"size-large wp-image-63379\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/06/gmosoybeans-1024x767.jpg\" alt=\"A farmer holds Monsanto's Roundup Ready soybean seeds at his family farm in Bunceton, Mo. Photo: Dan Gill/AP\" width=\"1024\" height=\"767\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A farmer holds Monsanto's Roundup Ready soybean seeds at his family farm in Bunceton, Mo. Photo: Dan Gill/AP\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>GMO & Labeling:\u003c/strong> The genetically-modified food debate didn't get resolved this year, but it hit some key points around the country. As more people considered what the labels on their food should say, initiatives to label GMOs went to the voters. In November, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/07/washington-state-says-no-to-gmo-labels/\" target=\"_blank\">Washington voted 'No' on GMO labeling\u003c/a>. A number of other initiatives are expected to be on other state ballots in the next year. Advocates say people have the right to know what's in their food. But, opinions on GMOs are still mixed. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/05/15/for-supreme-court-monsantos-win-was-more-about-patents-than-seeds/\" target=\"_blank\">A Supreme Court ruling in May sided with seed manufacturer Monsanto\u003c/a>, arguing that farmers who used genetically-modified seeds for multiple plantings violate copyright. As farmers move away from GMO seeds, particularly since the seeds haven't always worked as well as promised and in an effort to disconnect from large companies like Monsanto, \u003ca href=\"http://modernfarmer.com/2013/12/post-gmo-economy/\" target=\"_blank\">they're looking for natural solutions to what GMOs promised\u003c/a>. What will the post-GMO economy look like?\u003c/p>\n\u003cp>But, for the conscientious foodie, GMOs aren't the only thing to worry about in their food. The labels tell consumers lots of information -- where it's from, how much fat it has, how many calories or, potentially, what antibiotics were used. The debate over that information is only getting started. \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/11/14/whats-the-most-important-thing-food-labels-should-tell-us/\" target=\"_blank\">What should our labels tell us\u003c/a>?\u003c/p>\n\u003cfigure id=\"attachment_74841\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/schoollunch-503876b2756a4c46fb21b6d11427e193962a9fee.jpg\">\u003cimg class=\"size-large wp-image-74841\" src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/schoollunch-503876b2756a4c46fb21b6d11427e193962a9fee-1024x768.jpg\" alt=\"Students at Lowell High School in Michigan sit down for lunch. Shorter lunch breaks mean that many kids don't get enough time to eat and socialize. Photo: Emily Zoladz/Landov\" width=\"1024\" height=\"768\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Students at Lowell High School in Michigan sit down for lunch. Shorter lunch breaks mean that many kids don't get enough time to eat and socialize. Photo: Emily Zoladz/Landov\u003c/figcaption>\u003c/figure>\n\u003cp>\u003cstrong>School Lunches:\u003c/strong> Every parent wants their kids to eat well, so it's no surprise that school lunches remained a hot topic again in 2013. In July, \u003ca href=\"http://blogs.kqed.org/stateofhealth/2013/07/12/drink-up-schools-must-provide-more-water-during-meals/\" target=\"_blank\">a new federal regulation required that schools provide drinking water at breakfast for students\u003c/a>, helping to address growing concern about sugary soft drinks. Traditional worries about nutrition guidelines met with new angst about GMOs, antibiotics and leftovers -- some of the food waste nonprofits are taking leftover food from school lunch programs for re-use. But, now, parents have something else to worry about too: how much time kids have to eat. With school schedules getting condensed and budgets taking a hit, \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/12/06/these-days-school-lunch-hours-are-more-like-15-minutes/\" target=\"_blank\">lunch is getting shorter\u003c/a>. \u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>A popular photo spread showed us \u003ca href=\"http://www.good.is/posts/this-is-what-america-s-school-lunches-really-look-like\" target=\"_blank\">what school lunches really looked like this year\u003c/a>. What will they look like next year?\u003c/p>\n\u003ch3>What were some of the biggest trends this year that we missed?\u003c/h3>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/75227/the-top-issues-that-consumed-the-food-world-this-year","authors":["1459"],"categories":["bayareabites_109","bayareabites_752","bayareabites_1962","bayareabites_4084","bayareabites_2035","bayareabites_60"],"tags":["bayareabites_8693","bayareabites_2256","bayareabites_3707","bayareabites_10771","bayareabites_12605","bayareabites_11505","bayareabites_450","bayareabites_12625","bayareabites_11838"],"featImg":"bayareabites_75306","label":"bayareabites"},"bayareabites_74829":{"type":"posts","id":"bayareabites_74829","meta":{"index":"posts_1591205157","site":"bayareabites","id":"74829","score":null,"sort":[1386271935000]},"guestAuthors":[],"slug":"fast-food-workers-cry-poverty-wages-as-mcdonalds-buys-luxury-jet","title":"Fast-Food Workers Cry Poverty Wages As McDonald's Buys Luxury Jet","publishDate":1386271935,"format":"aside","headTitle":"Bay Area Bites | KQED Food","labelTerm":{"site":"bayareabites"},"content":"\u003cfigure id=\"attachment_74830\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/wage-rally-5_wide-472bda5cd09019d454ad6ab8eeb8f91f9dab35f9.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/wage-rally-5_wide-472bda5cd09019d454ad6ab8eeb8f91f9dab35f9-1024x575.jpg\" alt=\"Fast-food workers march toward the Smithsonian's National Air and Space Museum in Washington, D.C., on Thursday. Similar rallies occurred in about 100 cities across the U.S. Photo: Morgan Walker/NPR\" width=\"1024\" height=\"575\" class=\"size-large wp-image-74830\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Fast-food workers march toward the Smithsonian's National Air and Space Museum in Washington, D.C., on Thursday. Similar rallies occurred in about 100 cities across the U.S. Photo: Morgan Walker/NPR\u003c/figcaption>\u003c/figure>\n\u003cp>Post by Allison Aubrey, \u003ca href=\"http://www.npr.org/blogs/thesalt/2013/12/03/248567592/fast-food-workers-cry-poverty-wages-as-mcdonalds-buys-luxury-jet\">The Salt at NPR Food\u003c/a> (12/5/13)\u003c/p>\n\u003cp>When you're making eight bucks an hour, which is pretty typical in the fast-food industry, it's tough to make ends meet.\u003c/p>\n\u003cp>And increasingly, the working poor are asking this question: Why am I living in poverty, even when I'm working full time?\u003c/p>\n\u003cp>That's the message that thousands of fast-food workers rallying Thursday in about 100 U.S. cities — from Oakland to Memphis to Washington, D.C. — want heard. A \u003ca href=\"http://livingwage.mit.edu/counties/11001\">living wage\u003c/a> in big cities is closer to $14 an hour, and it jumps to about $20 an hour for an adult supporting a child.\u003c/p>\n\u003cp>The protests are part of a growing campaign backed by a coalition of advocacy groups, religious organizations and union organizers aimed at raising fast-food wages to $15 an hour.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>At at time when the fastest-growing jobs in the U.S. economy are also the lowest-paid, the issue of income inequality is on the lips of leaders worldwide.\u003c/p>\n\u003cfigure id=\"attachment_74831\" class=\"wp-caption alignleft\" style=\"max-width: 290px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/wage-rally-6-a034999f8db4aa830d1073d5c6915b234f6150b4.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/wage-rally-6-a034999f8db4aa830d1073d5c6915b234f6150b4-290x217.jpg\" alt=\"Amal Mimish, an organizer with Good Jobs Nation, registers protesters at the fast-food-workers' rally in Washington, D.C., on Thursday. Photo: Morgan Walker/NPR\" width=\"290\" height=\"217\" class=\"size-medium wp-image-74831\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Amal Mimish, an organizer with Good Jobs Nation, registers protesters at the fast-food-workers' rally in Washington, D.C., on Thursday. Photo: Morgan Walker/NPR\u003c/figcaption>\u003c/figure>\n\u003cp>From the \u003ca href=\"http://www.washingtonpost.com/business/economy/pope-francis-denounces-trickle-down-economic-theories-in-critique-of-inequality/2013/11/26/e17ffe4e-56b6-11e3-8304-caf30787c0a9_story.html\">remarks by Pope Francis\u003c/a> a few weeks back to President Obama's \u003ca href=\"http://www.npr.org/blogs/thetwo-way/2013/12/04/248803175/income-inequality-challenge-of-our-time-obama-says\">speech\u003c/a> Wednesday, it's clear that there's growing unease about the divide between the haves and the have-nots.\u003c/p>\n\u003cp>And the image problem for the fast-food industry is exemplified by \u003ca href=\"http://action.ourfuture.org/p/dia/action3/common/public/?action_KEY=249&utm_source=self&utm_Medium=email&utm_Campaign=blst2\">this online petition\u003c/a> urging McDonald's chief executive officer, Donald Thompson, to cancel his order for another corporate jet until he pays all his employees a decent wage.\u003c/p>\n\u003cp>According to the petition, McDonald's \u003ca href=\"http://www.businessinsider.com/mcdonalds-and-starbucks-buy-jets-2013-10\">just bought\u003c/a> a $35 million luxury Bombardier jet for its corporate executives. Yet many of the company's employees make so little that they rely on public assistance to get by.\u003ca href=\"http://www.businessinsider.com/mcdonalds-and-starbucks-buy-jets-2013-10\">\u003c/a>\u003c/p>\n\u003cp>\"It's not right to impoverish your employees while sailing above them at a rate of $2,500 an hour,\" reads the petition started by the \u003ca href=\"http://ourfuture.org/\">Campaign For America's Future\u003c/a>. \"It's immoral to do it with a taxpayer subsidy.\"\u003c/p>\n\u003cp>In a recent \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/10/16/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers/\">study\u003c/a>, economists at the University of California, Berkeley, found that 52 percent of fast-food workers rely on taxpayer-funded public assistance programs, such as food stamps or Medicaid.\u003c/p>\n\u003cp>\"Taxpayers are subsidizing the low-wage model of these employers, who are making record profits in some cases,\" says \u003ca href=\"https://new.sipa.columbia.edu/faculty/dorian-warren\">Dorian Warren\u003c/a>, an associate professor at Columbia University who studies income inequality.\u003c/p>\n\u003cp>McDonald's didn't comment on the new round of protests Thursday. But back in October, a company spokeswoman \u003ca href=\"http://www.npr.org/blogs/thesalt/2013/10/11/232077122/mcdonalds-president-was-caught-off-guard-by-low-wage-single-mom\">told\u003c/a> The Salt that McDonald's history is full of examples of individuals who worked their first job with the company and then went on to have successful careers — both within and outside of McDonald's.\u003c/p>\n\u003cp>As for the push from workers for higher hourly wages, McDonald's \"does not determine wages set by our more than 3,000 U.S. franchises,\" a spokeswoman for the company says.\u003c/p>\n\u003cp>But at the restaurants run by the company — fewer than 10 percent of the roughly 14,000 McDonald's outlets in the U.S. — the spokeswoman explains, \"we pay salaries that begin at minimum wage, but range up from that figure, depending on the job and employee's experience level.\"\u003c/p>\n\u003cp>And according to an analysis by the financial information company \u003ca href=\"https://www.sageworks.com/\">Sageworks\u003c/a>, many franchise operators are seeing significant increases in sales revenue.\u003c/p>\n\u003cp>Over the past four years, privately held fast-food restaurants have seen profit margins nearly double, Sageworks found, while the restaurants' labor costs have remained flat.\u003c/p>\n\u003cp>So what will it take to push up wages? Depends on whom you ask.\u003c/p>\n\u003cp>Increasingly, politicians are under pressure to raise the federal minimum wage. The president made his case Thursday. And already, a patchwork of state and municipal pay hikes have been passed. For instance, New Jersey passed a ballot initiative to \u003ca href=\"http://www.raisetheminimumwage.com/media-center/entry/voters-approve-minimum-wage-increases-in-new-jersey-and-seatac-wa/\">raise its minimum wage\u003c/a> by $1 to $8.25 an hour. And many workers in the city of SeaTac, Wash. — home to the Seattle airport — will get a raise to $15 an hour.\u003c/p>\n\u003cp>\"The federal minimum wage has lagged behind the rising cost of living for the past four decades,\" says \u003ca href=\"http://www.nelp.org/site/about_us/policy_analyst8\">Jack Temple\u003c/a> of the National Employment Law Project.\u003c/p>\n\u003cp>According to \u003ca href=\"http://www.raisetheminimumwage.com/\">Raise The Minimum Wage\u003c/a>, a project of the National Employment Law Project, the minimum wage would be $10.74 if it had kept up with inflation over the past 40 years.\u003c/p>\n\u003cp>\"Workers' backs are against the wall,\" Temple says.\u003c/p>\n\u003cp>But not everyone agrees that raising the federal minimum wage will fix the problem. \"I would oppose raising the minimum wage to $15 an hour,\" says \u003ca href=\"http://www.aei.org/scholar/michael-r-strain/\">Michael Strain\u003c/a> of the American Enterprise Institute.\u003c/p>\n\u003cp>Such a hike in wages would lead to higher prices at the fast-food counter for all of us, Strain says, and employers would hold back on hiring. In addition, fast-food chains might replace people with new automated technology, which could be cheaper over time, he says.\u003c/p>\n\u003cp>Strain favors responses that wouldn't put the onus on business owners, such as an expansion of the \u003ca href=\"http://www.irs.gov/Individuals/EITC-Home-Page--It%E2%80%99s-easier-than-ever-to-find-out-if-you-qualify-for-EITC\">earned income tax credit\u003c/a> or other subsidies.\u003c/p>\n\u003cp>Otherwise, free market economists say, low-skill workers run the risk of being priced out of the job market.\u003c/p>\n\u003cp>It's true that the fast-food industry has given lots of young workers a start in the job market. In fact, the current CEO of McDonald's started behind the counter of a Michigan McDonald's decades ago.\u003c/p>\n\u003cp>But at a time when \u003ca href=\"http://www.cepr.net/index.php/blogs/cepr-blog/slow-progress-for-fast-food-workers\">70 percent\u003c/a> of fast-food workers are in their 20s or older and one-quarter are raising children, the demands for higher wages are growing. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Copyright 2013 \u003ca href=\"http://www.npr.org/\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n","blocks":[],"excerpt":"Thousands of restaurant workers protested Thursday in cities around the country, calling for an increase in wages to $15 an hour. Many fast-food workers make so little that they rely on public assistance to get by, even as profits at many franchises have nearly doubled in recent years. But not everyone agrees that raising the minimum wage will fix the problem.","status":"publish","parent":0,"modified":1386271935,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":31,"wordCount":990},"headData":{"title":"Fast-Food Workers Cry Poverty Wages As McDonald's Buys Luxury Jet | KQED","description":"Thousands of restaurant workers protested Thursday in cities around the country, calling for an increase in wages to $15 an hour. Many fast-food workers make so little that they rely on public assistance to get by, even as profits at many franchises have nearly doubled in recent years. But not everyone agrees that raising the minimum wage will fix the problem.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Fast-Food Workers Cry Poverty Wages As McDonald's Buys Luxury Jet","datePublished":"2013-12-05T19:32:15.000Z","dateModified":"2013-12-05T19:32:15.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"74829 http://blogs.kqed.org/bayareabites/?p=74829","disqusUrl":"https://ww2.kqed.org/bayareabites/2013/12/05/fast-food-workers-cry-poverty-wages-as-mcdonalds-buys-luxury-jet/","disqusTitle":"Fast-Food Workers Cry Poverty Wages As McDonald's Buys Luxury Jet","nprByline":"Allison Aubrey","nprStoryId":"248567592","nprApiLink":"http://api.npr.org/query?id=248567592&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"http://www.npr.org/blogs/thesalt/2013/12/03/248567592/fast-food-workers-cry-poverty-wages-as-mcdonalds-buys-luxury-jet?ft=3&f=248567592","nprRetrievedStory":"1","nprPubDate":"Thu, 05 Dec 2013 14:17:00 -0500","nprStoryDate":"Thu, 05 Dec 2013 13:23:00 -0500","nprLastModifiedDate":"Thu, 05 Dec 2013 14:17:52 -0500","path":"/bayareabites/74829/fast-food-workers-cry-poverty-wages-as-mcdonalds-buys-luxury-jet","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_74830\" class=\"wp-caption aligncenter\" style=\"max-width: 1024px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/wage-rally-5_wide-472bda5cd09019d454ad6ab8eeb8f91f9dab35f9.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/wage-rally-5_wide-472bda5cd09019d454ad6ab8eeb8f91f9dab35f9-1024x575.jpg\" alt=\"Fast-food workers march toward the Smithsonian's National Air and Space Museum in Washington, D.C., on Thursday. Similar rallies occurred in about 100 cities across the U.S. Photo: Morgan Walker/NPR\" width=\"1024\" height=\"575\" class=\"size-large wp-image-74830\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Fast-food workers march toward the Smithsonian's National Air and Space Museum in Washington, D.C., on Thursday. Similar rallies occurred in about 100 cities across the U.S. Photo: Morgan Walker/NPR\u003c/figcaption>\u003c/figure>\n\u003cp>Post by Allison Aubrey, \u003ca href=\"http://www.npr.org/blogs/thesalt/2013/12/03/248567592/fast-food-workers-cry-poverty-wages-as-mcdonalds-buys-luxury-jet\">The Salt at NPR Food\u003c/a> (12/5/13)\u003c/p>\n\u003cp>When you're making eight bucks an hour, which is pretty typical in the fast-food industry, it's tough to make ends meet.\u003c/p>\n\u003cp>And increasingly, the working poor are asking this question: Why am I living in poverty, even when I'm working full time?\u003c/p>\n\u003cp>That's the message that thousands of fast-food workers rallying Thursday in about 100 U.S. cities — from Oakland to Memphis to Washington, D.C. — want heard. A \u003ca href=\"http://livingwage.mit.edu/counties/11001\">living wage\u003c/a> in big cities is closer to $14 an hour, and it jumps to about $20 an hour for an adult supporting a child.\u003c/p>\n\u003cp>The protests are part of a growing campaign backed by a coalition of advocacy groups, religious organizations and union organizers aimed at raising fast-food wages to $15 an hour.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>At at time when the fastest-growing jobs in the U.S. economy are also the lowest-paid, the issue of income inequality is on the lips of leaders worldwide.\u003c/p>\n\u003cfigure id=\"attachment_74831\" class=\"wp-caption alignleft\" style=\"max-width: 290px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/wage-rally-6-a034999f8db4aa830d1073d5c6915b234f6150b4.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/12/wage-rally-6-a034999f8db4aa830d1073d5c6915b234f6150b4-290x217.jpg\" alt=\"Amal Mimish, an organizer with Good Jobs Nation, registers protesters at the fast-food-workers' rally in Washington, D.C., on Thursday. Photo: Morgan Walker/NPR\" width=\"290\" height=\"217\" class=\"size-medium wp-image-74831\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Amal Mimish, an organizer with Good Jobs Nation, registers protesters at the fast-food-workers' rally in Washington, D.C., on Thursday. Photo: Morgan Walker/NPR\u003c/figcaption>\u003c/figure>\n\u003cp>From the \u003ca href=\"http://www.washingtonpost.com/business/economy/pope-francis-denounces-trickle-down-economic-theories-in-critique-of-inequality/2013/11/26/e17ffe4e-56b6-11e3-8304-caf30787c0a9_story.html\">remarks by Pope Francis\u003c/a> a few weeks back to President Obama's \u003ca href=\"http://www.npr.org/blogs/thetwo-way/2013/12/04/248803175/income-inequality-challenge-of-our-time-obama-says\">speech\u003c/a> Wednesday, it's clear that there's growing unease about the divide between the haves and the have-nots.\u003c/p>\n\u003cp>And the image problem for the fast-food industry is exemplified by \u003ca href=\"http://action.ourfuture.org/p/dia/action3/common/public/?action_KEY=249&utm_source=self&utm_Medium=email&utm_Campaign=blst2\">this online petition\u003c/a> urging McDonald's chief executive officer, Donald Thompson, to cancel his order for another corporate jet until he pays all his employees a decent wage.\u003c/p>\n\u003cp>According to the petition, McDonald's \u003ca href=\"http://www.businessinsider.com/mcdonalds-and-starbucks-buy-jets-2013-10\">just bought\u003c/a> a $35 million luxury Bombardier jet for its corporate executives. Yet many of the company's employees make so little that they rely on public assistance to get by.\u003ca href=\"http://www.businessinsider.com/mcdonalds-and-starbucks-buy-jets-2013-10\">\u003c/a>\u003c/p>\n\u003cp>\"It's not right to impoverish your employees while sailing above them at a rate of $2,500 an hour,\" reads the petition started by the \u003ca href=\"http://ourfuture.org/\">Campaign For America's Future\u003c/a>. \"It's immoral to do it with a taxpayer subsidy.\"\u003c/p>\n\u003cp>In a recent \u003ca href=\"http://ww2.kqed.org/bayareabites/2013/10/16/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers/\">study\u003c/a>, economists at the University of California, Berkeley, found that 52 percent of fast-food workers rely on taxpayer-funded public assistance programs, such as food stamps or Medicaid.\u003c/p>\n\u003cp>\"Taxpayers are subsidizing the low-wage model of these employers, who are making record profits in some cases,\" says \u003ca href=\"https://new.sipa.columbia.edu/faculty/dorian-warren\">Dorian Warren\u003c/a>, an associate professor at Columbia University who studies income inequality.\u003c/p>\n\u003cp>McDonald's didn't comment on the new round of protests Thursday. But back in October, a company spokeswoman \u003ca href=\"http://www.npr.org/blogs/thesalt/2013/10/11/232077122/mcdonalds-president-was-caught-off-guard-by-low-wage-single-mom\">told\u003c/a> The Salt that McDonald's history is full of examples of individuals who worked their first job with the company and then went on to have successful careers — both within and outside of McDonald's.\u003c/p>\n\u003cp>As for the push from workers for higher hourly wages, McDonald's \"does not determine wages set by our more than 3,000 U.S. franchises,\" a spokeswoman for the company says.\u003c/p>\n\u003cp>But at the restaurants run by the company — fewer than 10 percent of the roughly 14,000 McDonald's outlets in the U.S. — the spokeswoman explains, \"we pay salaries that begin at minimum wage, but range up from that figure, depending on the job and employee's experience level.\"\u003c/p>\n\u003cp>And according to an analysis by the financial information company \u003ca href=\"https://www.sageworks.com/\">Sageworks\u003c/a>, many franchise operators are seeing significant increases in sales revenue.\u003c/p>\n\u003cp>Over the past four years, privately held fast-food restaurants have seen profit margins nearly double, Sageworks found, while the restaurants' labor costs have remained flat.\u003c/p>\n\u003cp>So what will it take to push up wages? Depends on whom you ask.\u003c/p>\n\u003cp>Increasingly, politicians are under pressure to raise the federal minimum wage. The president made his case Thursday. And already, a patchwork of state and municipal pay hikes have been passed. For instance, New Jersey passed a ballot initiative to \u003ca href=\"http://www.raisetheminimumwage.com/media-center/entry/voters-approve-minimum-wage-increases-in-new-jersey-and-seatac-wa/\">raise its minimum wage\u003c/a> by $1 to $8.25 an hour. And many workers in the city of SeaTac, Wash. — home to the Seattle airport — will get a raise to $15 an hour.\u003c/p>\n\u003cp>\"The federal minimum wage has lagged behind the rising cost of living for the past four decades,\" says \u003ca href=\"http://www.nelp.org/site/about_us/policy_analyst8\">Jack Temple\u003c/a> of the National Employment Law Project.\u003c/p>\n\u003cp>According to \u003ca href=\"http://www.raisetheminimumwage.com/\">Raise The Minimum Wage\u003c/a>, a project of the National Employment Law Project, the minimum wage would be $10.74 if it had kept up with inflation over the past 40 years.\u003c/p>\n\u003cp>\"Workers' backs are against the wall,\" Temple says.\u003c/p>\n\u003cp>But not everyone agrees that raising the federal minimum wage will fix the problem. \"I would oppose raising the minimum wage to $15 an hour,\" says \u003ca href=\"http://www.aei.org/scholar/michael-r-strain/\">Michael Strain\u003c/a> of the American Enterprise Institute.\u003c/p>\n\u003cp>Such a hike in wages would lead to higher prices at the fast-food counter for all of us, Strain says, and employers would hold back on hiring. In addition, fast-food chains might replace people with new automated technology, which could be cheaper over time, he says.\u003c/p>\n\u003cp>Strain favors responses that wouldn't put the onus on business owners, such as an expansion of the \u003ca href=\"http://www.irs.gov/Individuals/EITC-Home-Page--It%E2%80%99s-easier-than-ever-to-find-out-if-you-qualify-for-EITC\">earned income tax credit\u003c/a> or other subsidies.\u003c/p>\n\u003cp>Otherwise, free market economists say, low-skill workers run the risk of being priced out of the job market.\u003c/p>\n\u003cp>It's true that the fast-food industry has given lots of young workers a start in the job market. In fact, the current CEO of McDonald's started behind the counter of a Michigan McDonald's decades ago.\u003c/p>\n\u003cp>But at a time when \u003ca href=\"http://www.cepr.net/index.php/blogs/cepr-blog/slow-progress-for-fast-food-workers\">70 percent\u003c/a> of fast-food workers are in their 20s or older and one-quarter are raising children, the demands for higher wages are growing. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Copyright 2013 \u003ca href=\"http://www.npr.org/\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/74829/fast-food-workers-cry-poverty-wages-as-mcdonalds-buys-luxury-jet","authors":["byline_bayareabites_74829"],"categories":["bayareabites_1962","bayareabites_50","bayareabites_10916","bayareabites_2035","bayareabites_181"],"tags":["bayareabites_12104","bayareabites_11502","bayareabites_9101","bayareabites_11505","bayareabites_12284","bayareabites_10921"],"featImg":"bayareabites_74838","label":"bayareabites"},"bayareabites_72311":{"type":"posts","id":"bayareabites_72311","meta":{"index":"posts_1591205157","site":"bayareabites","id":"72311","score":null,"sort":[1381956782000]},"guestAuthors":[],"slug":"why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers","title":"Why U.S. Taxpayers Pay $7 Billion A Year To Help Fast-Food Workers","publishDate":1381956782,"format":"aside","headTitle":"Bay Area Bites | KQED Food","labelTerm":{"site":"bayareabites"},"content":"\u003cfigure id=\"attachment_72316\" class=\"wp-caption aligncenter\" style=\"max-width: 624px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/mcdonalds-workers-protest.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/mcdonalds-workers-protest.jpg\" alt=\"New York City Council speaker and then-mayoral candidate Christine Quinn speaks at a fast-food workers' protest outside a McDonald's in New York in August. A nationwide movement is calling for raising the minimum hourly wage for fast-food workers to $15. Photo: Richard Drew/AP\" width=\"624\" height=\"350\" class=\"size-full wp-image-72316\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">New York City Council speaker and then-mayoral candidate Christine Quinn speaks at a fast-food workers' protest outside a McDonald's in New York in August. A nationwide movement is calling for raising the minimum hourly wage for fast-food workers to $15. Photo: Richard Drew/AP\u003c/figcaption>\u003c/figure>\n\u003cp>Post by Allison Aubrey, \u003ca href=\"http://www.npr.org/blogs/thesalt/2013/10/16/235398536/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers\">The Salt at NPR Food\u003c/a> (10/16/13)\u003c/p>\n\u003cp>If you hit the drive-through, chances are that the cashier who rings you up or the cook who prepared your food relies on public assistance to make ends meet.\u003c/p>\n\u003cp>A new analysis finds that 52 percent of fast-food workers are enrolled in, or have their families enrolled in, one or more public assistance programs such as SNAP (food stamps) Medicaid or the Children's Health Insurance Program (CHIP).\u003c/p>\n\u003cp>That's right: With a median wage of $8.69 per hour for front-line fast-food jobs — cooks, cashiers and crew — workers are taking home a paycheck, but it's not enough to cover the basics, according to the authors of \"\u003ca href=\"http://laborcenter.berkeley.edu/publiccosts/fastfoodpovertywages.shtml\">Fast Food, Poverty Wages\u003c/a>.\"\u003c/p>\n\u003cp>\"The taxpayer costs we discovered were staggering,\" says co-author Ken Jacobs of the \u003ca href=\"http://laborcenter.berkeley.edu/publiccosts/fastfoodpovertywages.shtml\">Center for Labor Research and Education\u003c/a> at the University of California, Berkeley.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\"The combination of low wages, meager benefits, and often part-time hours means that many of the families of fast-food workers have to rely on taxpayer-funded safety net programs to make ends meet,\" Jacobs told me by phone.\u003c/p>\n\u003cp>The report finds that the fast-food industry's low wages, combined with part-time hours and lack of health care benefits, creates demand for public assistance including $3.9 billion per year in Medicaid and Children's Health Insurance Program (CHIP) benefits. Add on another billion for the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamp assistance. Earned Income Tax Credit payments (a subsidy to low-wage workers) amount to about $1.95 billion per year.\u003c/p>\n\u003cp>Contrary to the assumption that the typical fast-food worker is a teenager living with his or her parents, the report finds that the vast majority of front-line fast-food workers are adults who are supporting themselves — \"and 68 percent are the main wage earners in their families,\" \u003ca href=\"http://www.urban.uiuc.edu/faculty/doussard/\">Marc Doussard\u003c/a> of the University of Illinois at Urbana-Champaign, a co-author on the paper, says in a \u003ca href=\"http://newscenter.berkeley.edu/2013/10/15/low-wage-fast-food-jobs-leave-hefty-tax-bill-report-says/\">press release\u003c/a> about the study.\u003c/p>\n\u003cp>He says about a quarter of those working these jobs in fast-food restaurants are parents supporting children at home.\u003c/p>\n\u003cp>The report was funded by \u003ca href=\"http://fastfoodforward.org/\">Fast Food Forward\u003c/a>, a group campaigning for higher wages.\u003c/p>\n\u003cp>The analysis comes as a campaign for $15 per hour wages has garnered significant attention around the country. Over the past year, workers in cities nationwide have temporarily walked off their jobs to protest low wages.\u003c/p>\n\u003cp>But, some more conservative-leaning economists say raising wages would do nothing to curtail the taxpayer spending on public assistance programs.\u003c/p>\n\u003cp>\"I don't think raising the minimum wage to $15 an hour would solve that problem,\" \u003ca href=\"http://www.aei.org/scholar/michael-r-strain/\">Michael Strain\u003c/a>, a resident scholar at the American Enterprise Institute, told me during a phone interview. He describes himself as a center-right economist.\u003c/p>\n\u003cp>Strain says raising wages to that level would have unintended consequences: Namely, fast-food companies would slow down their hiring. And this would lead to more workers looking for jobs — and potentially needing to rely on more public assistance.\u003c/p>\n\u003cp>Strain says the $7 billion taxpayer bill is not necessarily problematic.\u003c/p>\n\u003cp>\"I think the system seems to be working the way it is — not that it's working perfectly,\" he says, adding, \"In general, the government is making sure these people's basic needs are met, which is an appropriate role of government.\"\u003c/p>\n\u003cp>At the same time, Strain argues, fast-food businesses are paying their workers wages that they judge to be equal to the value these workers are adding to the production process.\u003c/p>\n\u003cp>\"If we were to raise the minimum wage to $15 an hour, I think most economists, including me, would argue that that would result in a lot fewer workers,\" since fast-food companies would slow-down on hiring.\u003c/p>\n\u003cp>Ken Jacobs disagrees.\u003c/p>\n\u003cp>\"I think there's very good evidence on what's happened when wages have been improved for low-wage and fast-food workers,\" Jacobs says.\u003c/p>\n\u003cp>He points to a fast-food company, \u003ca href=\"http://www.in-n-out.com/\">In-N-Out Burger\u003c/a>, as an example of an employer that pays higher-than-average wages, yet is still profitable.\u003c/p>\n\u003cp>And, Jacobs says, some municipalities are raising minimum wages, such as San Jose, Calif., where the minimum wage is set to increase \u003ca href=\"http://www.sanjoseca.gov/?nid=3491\">to $10.15 per hour\u003c/a> in January of 2014. And there are proposals in states including \u003ca href=\"http://articles.washingtonpost.com/2013-09-03/local/41712055_1_minimum-dereck-e-gansler\">Maryland\u003c/a> to phase in hourly minimum wage hikes as well.\u003c/p>\n\u003cp>Jacobs argues that it's possible that employers may see a small decline in profits, but when wages are raised, \"you do find a significant decline in turnover [of workers], which is cost-saving for employers.\" \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Copyright 2013 \u003ca href=\"http://www.npr.org/\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n","blocks":[],"excerpt":"Fifty-two percent of low-wage fast-food workers rely on public assistance programs like food stamps and Medicaid just to make ends meet, a fresh analysis finds. Many are adults supporting families. But some conservative economists say raising the minimum wage to $15 – as protesters are demanding – wouldn't help matters.","status":"publish","parent":0,"modified":1381956782,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":26,"wordCount":835},"headData":{"title":"Why U.S. Taxpayers Pay $7 Billion A Year To Help Fast-Food Workers | KQED","description":"Fifty-two percent of low-wage fast-food workers rely on public assistance programs like food stamps and Medicaid just to make ends meet, a fresh analysis finds. Many are adults supporting families. But some conservative economists say raising the minimum wage to $15 – as protesters are demanding – wouldn't help matters.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Why U.S. Taxpayers Pay $7 Billion A Year To Help Fast-Food Workers","datePublished":"2013-10-16T20:53:02.000Z","dateModified":"2013-10-16T20:53:02.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"72311 http://blogs.kqed.org/bayareabites/?p=72311","disqusUrl":"https://ww2.kqed.org/bayareabites/2013/10/16/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers/","disqusTitle":"Why U.S. Taxpayers Pay $7 Billion A Year To Help Fast-Food Workers","nprByline":"Allison Aubrey","nprStoryId":"235398536","nprApiLink":"http://api.npr.org/query?id=235398536&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"http://www.npr.org/blogs/thesalt/2013/10/16/235398536/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers?ft=3&f=235398536","nprRetrievedStory":"1","nprPubDate":"Wed, 16 Oct 2013 16:34:00 -0400","nprStoryDate":"Wed, 16 Oct 2013 14:31:00 -0400","nprLastModifiedDate":"Wed, 16 Oct 2013 16:34:52 -0400","path":"/bayareabites/72311/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_72316\" class=\"wp-caption aligncenter\" style=\"max-width: 624px\">\u003ca href=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/mcdonalds-workers-protest.jpg\">\u003cimg src=\"http://ww2.kqed.org/bayareabites/wp-content/uploads/sites/24/2013/10/mcdonalds-workers-protest.jpg\" alt=\"New York City Council speaker and then-mayoral candidate Christine Quinn speaks at a fast-food workers' protest outside a McDonald's in New York in August. A nationwide movement is calling for raising the minimum hourly wage for fast-food workers to $15. Photo: Richard Drew/AP\" width=\"624\" height=\"350\" class=\"size-full wp-image-72316\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">New York City Council speaker and then-mayoral candidate Christine Quinn speaks at a fast-food workers' protest outside a McDonald's in New York in August. A nationwide movement is calling for raising the minimum hourly wage for fast-food workers to $15. Photo: Richard Drew/AP\u003c/figcaption>\u003c/figure>\n\u003cp>Post by Allison Aubrey, \u003ca href=\"http://www.npr.org/blogs/thesalt/2013/10/16/235398536/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers\">The Salt at NPR Food\u003c/a> (10/16/13)\u003c/p>\n\u003cp>If you hit the drive-through, chances are that the cashier who rings you up or the cook who prepared your food relies on public assistance to make ends meet.\u003c/p>\n\u003cp>A new analysis finds that 52 percent of fast-food workers are enrolled in, or have their families enrolled in, one or more public assistance programs such as SNAP (food stamps) Medicaid or the Children's Health Insurance Program (CHIP).\u003c/p>\n\u003cp>That's right: With a median wage of $8.69 per hour for front-line fast-food jobs — cooks, cashiers and crew — workers are taking home a paycheck, but it's not enough to cover the basics, according to the authors of \"\u003ca href=\"http://laborcenter.berkeley.edu/publiccosts/fastfoodpovertywages.shtml\">Fast Food, Poverty Wages\u003c/a>.\"\u003c/p>\n\u003cp>\"The taxpayer costs we discovered were staggering,\" says co-author Ken Jacobs of the \u003ca href=\"http://laborcenter.berkeley.edu/publiccosts/fastfoodpovertywages.shtml\">Center for Labor Research and Education\u003c/a> at the University of California, Berkeley.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\"The combination of low wages, meager benefits, and often part-time hours means that many of the families of fast-food workers have to rely on taxpayer-funded safety net programs to make ends meet,\" Jacobs told me by phone.\u003c/p>\n\u003cp>The report finds that the fast-food industry's low wages, combined with part-time hours and lack of health care benefits, creates demand for public assistance including $3.9 billion per year in Medicaid and Children's Health Insurance Program (CHIP) benefits. Add on another billion for the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamp assistance. Earned Income Tax Credit payments (a subsidy to low-wage workers) amount to about $1.95 billion per year.\u003c/p>\n\u003cp>Contrary to the assumption that the typical fast-food worker is a teenager living with his or her parents, the report finds that the vast majority of front-line fast-food workers are adults who are supporting themselves — \"and 68 percent are the main wage earners in their families,\" \u003ca href=\"http://www.urban.uiuc.edu/faculty/doussard/\">Marc Doussard\u003c/a> of the University of Illinois at Urbana-Champaign, a co-author on the paper, says in a \u003ca href=\"http://newscenter.berkeley.edu/2013/10/15/low-wage-fast-food-jobs-leave-hefty-tax-bill-report-says/\">press release\u003c/a> about the study.\u003c/p>\n\u003cp>He says about a quarter of those working these jobs in fast-food restaurants are parents supporting children at home.\u003c/p>\n\u003cp>The report was funded by \u003ca href=\"http://fastfoodforward.org/\">Fast Food Forward\u003c/a>, a group campaigning for higher wages.\u003c/p>\n\u003cp>The analysis comes as a campaign for $15 per hour wages has garnered significant attention around the country. Over the past year, workers in cities nationwide have temporarily walked off their jobs to protest low wages.\u003c/p>\n\u003cp>But, some more conservative-leaning economists say raising wages would do nothing to curtail the taxpayer spending on public assistance programs.\u003c/p>\n\u003cp>\"I don't think raising the minimum wage to $15 an hour would solve that problem,\" \u003ca href=\"http://www.aei.org/scholar/michael-r-strain/\">Michael Strain\u003c/a>, a resident scholar at the American Enterprise Institute, told me during a phone interview. He describes himself as a center-right economist.\u003c/p>\n\u003cp>Strain says raising wages to that level would have unintended consequences: Namely, fast-food companies would slow down their hiring. And this would lead to more workers looking for jobs — and potentially needing to rely on more public assistance.\u003c/p>\n\u003cp>Strain says the $7 billion taxpayer bill is not necessarily problematic.\u003c/p>\n\u003cp>\"I think the system seems to be working the way it is — not that it's working perfectly,\" he says, adding, \"In general, the government is making sure these people's basic needs are met, which is an appropriate role of government.\"\u003c/p>\n\u003cp>At the same time, Strain argues, fast-food businesses are paying their workers wages that they judge to be equal to the value these workers are adding to the production process.\u003c/p>\n\u003cp>\"If we were to raise the minimum wage to $15 an hour, I think most economists, including me, would argue that that would result in a lot fewer workers,\" since fast-food companies would slow-down on hiring.\u003c/p>\n\u003cp>Ken Jacobs disagrees.\u003c/p>\n\u003cp>\"I think there's very good evidence on what's happened when wages have been improved for low-wage and fast-food workers,\" Jacobs says.\u003c/p>\n\u003cp>He points to a fast-food company, \u003ca href=\"http://www.in-n-out.com/\">In-N-Out Burger\u003c/a>, as an example of an employer that pays higher-than-average wages, yet is still profitable.\u003c/p>\n\u003cp>And, Jacobs says, some municipalities are raising minimum wages, such as San Jose, Calif., where the minimum wage is set to increase \u003ca href=\"http://www.sanjoseca.gov/?nid=3491\">to $10.15 per hour\u003c/a> in January of 2014. And there are proposals in states including \u003ca href=\"http://articles.washingtonpost.com/2013-09-03/local/41712055_1_minimum-dereck-e-gansler\">Maryland\u003c/a> to phase in hourly minimum wage hikes as well.\u003c/p>\n\u003cp>Jacobs argues that it's possible that employers may see a small decline in profits, but when wages are raised, \"you do find a significant decline in turnover [of workers], which is cost-saving for employers.\" \u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Copyright 2013 \u003ca href=\"http://www.npr.org/\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/bayareabites/72311/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers","authors":["byline_bayareabites_72311"],"categories":["bayareabites_1962","bayareabites_10916","bayareabites_2035","bayareabites_181"],"tags":["bayareabites_11504","bayareabites_12104","bayareabites_10011","bayareabites_11502","bayareabites_11505","bayareabites_11838","bayareabites_10921"],"featImg":"bayareabites_72316","label":"bayareabites"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. 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