- Owners and managers, including Nick Boyer from Sirens in St. Johns, warn that raising tipped wages could cripple small businesses in the hospitality industry.
- Boyer explains that with higher wages, the incentive for exceptional customer service may disappear, potentially losing the personal connection that keeps customers coming back.
- To stay afloat, businesses may raise menu prices and fees. For more details on this ongoing issue, watch the video above.
(The following is a transcription of the full broadcast story)
"It's a huge umbrella of disaster in my opinion... it’ll cripple the hospitality industry," said Boyer.
Raising tipped wages is raising some eyebrows when it comes to local restaurants. I’m your St. Johns neighborhood reporter, Russell Shellberg. With tipped wages being a big topic at the state Capitol right now, I’m speaking with one local restaurant about what this change in wages means for business moving forward.
As the tipped wage increase conversation continues, those in the restaurant business I spoke with say higher wages for waitstaff will have major impacts.
"I like it here, I don’t want to ever leave, but if we can’t find a happy medium somewhere, the government is basically forcing us to fail," said Boyer.
I spoke with General Manager Nick Boyer at Sirens Bar in St. Johns.
"Our profit margins are very narrow... especially for us, we do a lot of entertainment, and when we bring in live entertainment, it's anywhere from $600 to $1,000 per night," said Boyer.
Boyer told me that, being a small restaurant, tips are a way many of his customers thank his staff for excellent service. But with a wage raise...
"Where is the incentive for excellent customer service? There is none," said Boyer.
Boyer shared that tips are a way to connect with customers, a way to thank those who go above and beyond.
"Have you ever walked into a place of business where everyone knew your name? And as you walk through the door, everyone throws their arms in the air and says, ‘Hey! How are you doing?’ Is that a great feeling to walk into a business like that? Not as a client or a customer, but as someone who is missed and hasn’t been seen in three days. We’re going to lose that," said Boyer.
Boyer says that if wages do increase, prices will ultimately rise on menu items and other fees to help them stay afloat.
"I pray that we don’t have to spend this money... places like this struggle all the time. Why are you going to hurt this industry?" said Boyer.
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