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> the researchers present evidence that minimum wage changes led area restaurants to raise prices, change menu items, obtain lower rents in the high wage areas
by ethanbond 5y ago
> the researchers present evidence that minimum wage changes led area restaurants to raise prices, change menu items, obtain lower rents in the high wage areas and, in some cases, caused eateries to shut down.
I wonder if the units made empty by closures may have reduced price pressure on the ones that survived.
- pydry 5y agoYes, maybe. There's a definite tension between: * Restaurants being unwilling to raise prices (diners are notoriously intolerant, it can kill restaurants). * Landlords being unwilling to lower rents. * Restaurants being unwilling to tolerate < 6% profit margins. * Landlords being unwilling to lose a good, paying tenant if there isnt another around the corner. The pain has to be distributed somehow though.