Document Type

Article

Publication Date

9-16-2017

Publication Title

International Journal of Contemporary Hospitality Management

Volume

30

Issue

3

First page number:

1545

Last page number:

1562

Abstract

Purpose State and local governments are considering large increases to the minimum wage. As restaurants employ many individuals paid at or below minimum wage, these changes may affect their businesses. The purpose of this study is to evaluate the anticipated effects of minimum wage growth on employment and pricing in US food and beverage operations. Design/methodology/approach The study utilizes an experimental design where restaurant owners and managers are presented with scenarios of differing levels of potential minimum wage increases and are asked to anticipate changes to employment and pricing. Findings Restaurant owners and managers involved in the study indicate the level of the minimum wage increase will significantly affect changes in pricing and employment levels. Results also show that restaurant demographics such as type of restaurant and average check do not significantly affect the relative change operators anticipate implementing. Specific ways participants plan to make adjustments are also presented. Originality/value The anticipated impact of minimum wage increases at the restaurant level is examined, which differs from previous studies that determine the impact at the industry level. This study evaluates large minimum wage increases of up to 100 per cent, which have previously not been studied.

Keywords

Employment; Labor utilization; Minimum wage; Pricing; Restaurants; Staffing

Disciplines

Hospitality Administration and Management

File Format

application/pdf

File Size

84 Kb

Language

English

Download

UNLV article access

Search your library

Share

COinS