You may be paying a little more for that pasta primavera or bacon cheeseburger at your favorite lunch spot in D.C.
The first step of Initiative 82, which raises the tipped minimum wage for servers and bartenders, went into effect Monday, and many city restaurants say your bill will be a little heftier.
The Employment Policies Institute surveyed 105 restaurant owners in April. About 86% responded that the raised wages in 2023 will negatively impact their businesses.
EPI is a nonprofit research center that has published reports that warn against increasing the minimum wage and have clients that represent the restaurant industry.
Eight in 10 restaurants will likely raise menu prices, according to the data. In addition, around 70% answered that they would include a service charge on bills.
Data from the Employment Policies Institute shows around half will introduce a service or fair wage fee as well.
The tipped minimum wage will not only affect customers — employees will likely lose out on hours and could be fired altogether, according to the survey.
Employee hours are expected to be reduced at 62% of surveyed restaurants, and 63% said they would reduce staff and consolidate positions.
The new rule may also mean more self service. A quarter said they would change to a counter service model, or include some form of automation in their restaurants.
The results suggest many could simply close shop. Just short of one-third of respondents said they would have to shutter one or more locations.
Starting Monday, the tipped minimum wage increases to $6 and $8 on July 1. It will eventually match the regular minimum wage in 2027.
Supporters of the increase argue it provides a safety net of fair wages for employees.
In a news release, Kris Furnish, a former server and member of the D.C. Committee to Build a Better Restaurant Industry, wrote: “No one who works full-time should have to live in poverty. Initiative 82 will help ensure that all workers in Washington, D.C. are able to support themselves and their families.”
Initiative 82 was passed with overwhelming support on November’s ballot. Nearly 75% of voters approved.
It was scheduled to take effect on Jan. 1 of this year, but was delayed by the D.C. Council to allow businesses to better prepare for the switch.
