Fall River Restaurant Owner Talks About Question 5
An incredibly important election day today in America, but there is more than just one decision to make.
There are many local races to consider as well as five questions that are being posed to Massachusetts voters. One of those issues is Question 5, which addresses whether or not the minimum wage for servers should be raised to $15.
Karl Pelletier owns Tipsy Toboggan and the Old Grist Mill, and he joined us to talk about Question 5.
Why do you think we should vote NO on question 5 on the ballot?
Pelletier: "It will change the dining dynamic immensely. Servers and bartenders who love you and make your experience special and your afternoon lunch almost perfect every time you go out to dine; they're the ones who are going to be affected. They're the ones who don't want it; they haven't asked for it, and it really is going to drastically change the way the restaurant business operates."
On the surface, raising minimum wage sounds good, why is it not?
Pelletier: "Well, the servers already are guaranteed the state's minimum wage of $15 an hour. That's a guarantee. If they're not making it through tips from their guests, they're making it from their employer. I am responsible as a business owner for meeting that $15 minimum wage."
So then what would change?
Pelletier: "What would change is the fact that the business is paying the $15 an hour, and then any tips accrued after that are able to be split up amongst the staff. The dishwashers, line cooks, hosts, and employees who are making $18, 19, 22, and $27 an hour are now sharing the tips that you're paying the server for doing a great job. So in the end, the server's great job is no longer going to be great for themselves."
Is there a fear that customers would stop tipping?
Pelletier: "Ultimately, serving is a sales job, and there's servers out there who sell every day and who make a career out of it. It's their living; it feeds their family, and it's important that they get that extra money; they deserve the extra money. They're paid for what they're doing. They do a great job. That's what our dining culture is about right now, and it's going to change. If this goes through, the whole dining experience is going to drastically change. You're going to lose all the good ones. You're going to be flagging down your server while they're on their phone in the corner, and the manager's barely trying to keep things in line because the dynamic will be totally different. The servers are not asking for this pay raise and the bartenders are not asking for it. We never asked for this to be on the ballot."
What will happen to restaurants if Question 5 passes?
Pelletier: "This proposition would gradually increase the minimum wage the employer must pay tipped workers over the course of five years. Once it takes full effect, you're going to see restaurants like the Old Grist Mill operating on a tight margin. An old-school style restaurant with classic fare is not going to last long in that climate."
Give me a percentage of restaurants you think will close within the next two to three years if this passes.
Pelletier: "In DC, they're already seeing a pretty vast percentage of closings. I would say 10 percent, 15 percent within the first two years."
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