[vc_row][vc_column][vc_column_text]Ivar’s, an iconic seafood restaurant, which was founded by the legendary folk singer Ivar Haglund in 1938, is having to deal with the City of Seattle’s forced increase in the minimum wage.[/vc_column_text][banner300 banner=”5517620b381df”][vc_column_text]The recently passed law by the city that sports an admitted socialist on the city council, will eventually ratchet up to a $15 per hour mandatory minimum wage, with the first installment of the gradual increase, to $11 per hour, to be effective on Wednesday.
However, the longstanding Seattle institution will take the unusual step of forgoing the phased-in increase, and will immediately increase the restaurant’s minimum wage to $15 per hour, giving both the city and the rest of the nation an indication of the negative consequences of the mandate.
King 5 News reports on how Ivar’s will deal with the initial increase, which includes a raise in prices to consumers, as well as eliminating tips.
The restaurant will be telling customers that they no longer need to tip separately. Customers will see a 21% price increase in their food (so a $10 item will now be $12.10). The restaurant says 17% of that increase will go to workers to make up for lost tips, and 4% will pay for the wage increase.
King 5 also interviewed a local Subway restaurant owner on Aurora Avenue in Seattle, who said that because of the increase to $12.50 per hour mandate next year, they could be forced to close their doors.
“Loyalty cards for customers will be gone. Employee meals will be gone. Incentives for employees to go the extra mile will be gone, too. We already face that now,” said Heidi Mann.
Meanwhile, while other businesses are having to layoff employees to deal with the added expense, socialist City Council member Kshama Sawant is blaming capitalism for the job losses.
Silly socialist, money doesn’t grow on trees.[/vc_column_text][/vc_column][/vc_row]