Minimum wage hike may have negative affect on food service industry | Print |  E-mail
Written by Jen Korson   
Thursday, 01 April 2010 13:22
Restaurant

With the increase in minimum wage across Ontario, the restaurant industry is worried about how this will affect businesses and the tips servers receive.

Employees will be getting $10.25 per hour, which is a 75 cent increase, according to The Toronto Star; however, restaurant wait staff have always received less than minimum wage because it’s assumed by the Province that servers receive tips.

The Star said they will be getting an increase by the same percentage, but it will be rising from $8.90 to $9.60.

Nima Ranawana, a server at Sierra Grill, told TheDailyPlanet.com that unless someone is in the restaurant industry, they don’t know wait staff are paid below minimum wage. She’s concerned that she will not be making as much in the future as she currently is.

“For the most part, people see it [tips] as something extra, not something you’re supposed to do,” Ranawana said.

“There’s no real protection for servers. There’s no unionized system or benefits so there’s no real guarantee that we can support ourselves. That’s the difference between serving and another job.”

Stephanie Jones of the Canadian Restaurant and Foodservices Association told the Star that the government did not take into account how the minimum wage increase could affect restaurant payrolls.

The extra in wage costs will cost restaurants $255 million, worrying business owners they may have to cut hours or jobs, said the Star.

Melissa Tayar, a server at St. Louis Bar and Grill told TheDailyPlanet.com that while restaurants will be spending more, previous hourly hikes haven’t affected her restaurant thus far.

“We’re a pretty busy restaurant as it is, but we don’t have a lot of servers on at a time, so I think we are able to save money there,” said Tayar. “

“By minimizing staff, servers are able to make more because they have larger sections, and are therefore making more tips. It just sucks if managers are forced to let people go versus already having a small staff.”

Tayar also that when it comes to tips, she isn’t too concerned that they will be affected.

In terms of making less in tips, I haven’t seen a difference in the past years. I believe tips are based on service. I don’t think customers worry about how much servers make hourly.”