UnderCover Waitress: New Jersey Restaurant Owners are Shaking in Their Shoes

Wednesday, March 14, 2012

New Jersey Restaurant Owners are Shaking in Their Shoes

Yes, the title is sarcastic. NewsRoom New Jersey reports that restaurant managers in the garden state are terrified about a possible minimum wage hike. In the end, tipped employees such as waitresses could be pulling in as much $5.10 per hour in 2013. Greedy, greedy waitresses will bankrupt the restaurant industry.

"Elizabeth Nisbet, from the Center for Women and Work at Rutgers University, said that the federal minimum wage for tipped workers has not moved since 1991, despite regular minimum wage increases."

New Jersey waitresses make the federal minimum wage of $2.13 per hour.

"But the owner of two restaurants in New Brunswick, Francis Schott, said the bill would be disastrous for many businesses. She told NorthJersey.com, 'This is a job killer.'"

Bite me. Paying employees poverty wages does not create jobs. Demand for goods and services creates jobs.

Darden Restaurants, the corporation that owns Olive Garden, Red Lobster, and Longhorn Steakhouse did well last year. Discussing fourth quarter earnings, Brad Richmond was recorded saying:

"Darden's total sales from continuing operations increased 6.8% in the fourth quarter to $1.99 billion. This strong top line performance compares to an estimated 2.9% total sales growth for the industry as measured by Knapp-Track. So as you can see, we had meaningful market share growth. On a blended same-restaurant sales basis, the results for Olive Garden, Red Lobster and LongHorn Steakhouse were up 2.2% in the fourth quarter."

He goes on to say:

"For context, industry same-restaurant sales as measured by Knapp-Track and excluding Darden are estimated to be up 1.9% for the quarter."

Translation: the restaurant industry, in general, made money last quarter.

Something that costs any employer money is employee turnover. It is much cheaper to hang onto trained employees than to look for, hire, train, and lose new employees. This means that paying people for their efforts and treating them well equals more money for the business.

But the rich think they can get richer by sucking the life blood from the poor. Kind of like a parasite.


  1. I hate it when people argue that raising the minimum wage means business will suffer. They seem to be doing well from the last time they raised the wage. Here we changed the laws so that tips couldn't be used to make up part of waitresses minimum wage and restaurants said the same thing but it's been fine and waitresses have made a decent wage.

  2. No tip credit in Wales? Wow. There is no tip credit in some states here, including California. And the restaurants there are making money.

    Also, when everybody isn't broke so businesses can "create jobs," people actually go out to eat.

  3. Trickle down economics: yet another of the myths that they'd have us believe...

    1. It's more like "trickle on" economics.

    2. Lol, Angie. (No matter how you shake and dance...) >ahem.<

  4. We are planning to skip the restaurants which pay minimum wag tipped waitress salary. Can we get the list

    1. Are you serious? I can not provide you with the pay scales of every restaurant in New Jersey, sorry.


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