For years, the Left has worked hard to put businesses under the thumb of the federal government.
They’re beginning to make headway through national campaigns for a high-dollar minimum wage.
And these are the real-world consequences of minimum wage laws in a Democrat stronghold.
Fight for $15 has grown beyond expectations in recent years
In 2012, the Fight for $15 movement exploded in the United States.
The Fight for $15 movement seeks to raise the minimum wage at the federal level.
At the time, Americans couldn’t believe that anyone would ever suggest that a cook at McDonald’s or a Walmart greeter could get paid $15 per hour—but that’s what the goal was.
And they’re very close to this goal in 2024.
Even though the federal minimum wage is still sitting at $7.25 per hour, many states and municipalities have inched toward that goal in recent years.
The wage hikes have been happening incrementally, and this year nearly two-dozen states have increased the minimum standards.
Colorado has raised their minimum wage to $14.42 in recent years, but the city of Denver took it a step further by raising it to $18.29 per hour.
The Wall Street Journal interviewed a restaurant owner in the city to see what kind of effect this has had on their business.
No one will pay “$14, $15, or $16 for a burger”
Chef Zorba’s opened its doors in Denver nearly 50 years ago in 1979.
The owner, Karen LuKanic, said she’s not sure how much longer their restaurant can last given the increasing cost of labor.
“We are just keeping our head above water,” Lukanic said.
Thanks to payroll costs, the restaurant has seen a nearly 50 percent increase in menu prices since 2018.
According to the Journal, “Chef Zorba’s charges $15.75 for a bacon cheeseburger, $5 more than in 2018.”
The effects of the Fight for $15 movement have been felt in other states as well.
Johnny Roger’s BBQ & Burgers in Concord, North Carolina, has seen a similar increase, moving from $8.50 for a bacon cheeseburger all the way up to $12.50 today.
The owner, Barrett Dabbs, said “customers aren’t going to come visit you if you are charging $14, $15, or $16 for a burger.”
The increase in wages has led to much lower profits, which is putting a squeeze on his business.
Small businesses bare the brunt while larger corporations find a way
Across the country, over 4,500 independent restaurants have closed their doors in 2023.
That number is increasing every year.
In New York, over 40 restaurants closed in the month of January alone.
Small businesses are uniquely unable to fight back against this trend.
On the other hand, larger restaurant groups like Panera Bread are pushing back, but they are only looking out for their own interests.
California recently enacted a statewide minimum wage of $20 an hour.
However, they gave Panera Bread a pass.
Panera Bread lobbied for an exception that provides “chains that bake bread and sell it as a standalone item” a special caveat for their wages.
Interestingly, the CEO of Panera Bread has made over $164,000 in political donations to Newsom.
Small businesses cannot afford that kind of cash, especially in Joe Biden’s economy.
Patriot Political will keep you up-to-date on any developments to this ongoing story.
