Why This Ballot Initiative is Harmful
The proposed ballot initiative to eliminate tip credits could have severe negative consequences for restaurants, workers, and customers:
- Restaurants will face increased payroll costs, forcing them to raise prices.
- Higher prices may lead to decreased demand and potential job losses.
- Fewer staff could result in lower service quality, further impacting demand.
- Workers may end up earning less overall due to reduced tips and hours.
A recent study has shown that:
- For every 1% increase in price, restaurants see a 1.56% decrease in demand.
- For every 1% decrease in service quality, restaurants experience a 1.85% decrease in demand.