Summary
What I predicted – in 07 Increased government pressure on a variety of fronts from health care to taxes! In addition to the increase in minimum wage, there are other government driven pressures that will continue to mount on restaurant owners and operators in the next few years. What was reported on Dec 17 “ meanwhile, The U.S. Congress stalled in producing legislation aimed at immigration reform and restaurant operators continue to deal with undocumented workers in many ways… Meanwhile, menu labeling mandates were on the radar in municipalities such as New York City and Washington’s King county, where Seattle is located”
Analysis
What I predict will happen – In 08
These types of challenges will proliferate in 2008 and they will gain added momentum. The recent reprise offered by a Federal judge on the Social Security departments no match program will provide little relief as the department of homeland security has made a vow to enforce the existing documentation laws. Whether or not the new law is allowed to take effect there will be growing enforcement of the existing laws around immigration. Furthermore, there will be continued upward pressure on minimum wage in states across the country and more and more local and state governments will look to fees and sales tax increases to meet growing budget shortfalls. These issues combined with a number of other factors will make 08 even more difficult for the restaurants industry as a whole. However, specific segments and brands who rely heavily on immigration for their staffing will be more deeply affected.
