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RREMC Restaurants President John Metz on how the potential increase of the minimum wage in Florida would hurt his business financially.
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-- time when many people are looking for work there is a chance some workers in Florida.
Could be without -- job sometime next year.
Our next guest says that's all because of the expected hike in Florida State's minimum wage rate.
John Metz is CEO of hurricane grilling -- we thought we bring in a business -- small relatively small to medium sized business to give us a real sense.
Of how this might affect businesses and and John welcome to the show thank you for being here we often hear.
Smaller businesses complain about this saying that it would truly hurt them where do you stand on the expected hike in the minimum wage rate in the state of Florida.
What we're of course expecting about a 36.
Cent increase in the minimum wage.
It's gonna affect there's really two areas that'll affect us and there's two types of employees that are affected by the minimum wage to tipped employee from the -- to -- It's not gonna affect our -- at all with the non tipped employee that on the tipped employee we've lost most of our federal tax.
Credit the -- credit.
And therefore we're going to be paying 36 cents an hour extra for all of our tipped employees across all of our restaurants.
And although it doesn't sound like much.
We run about 500 server hours per week -- restaurants and now works out about a 180 dollars per week.
Or over 101000 dollars per year per restaurant.
And since we operate about fifty restaurants in the state of Florida.
That'll be over 500000.
Dollars off our bottom line next year because of the 36 cents an increase in the minimum wage so -- Either how many workers you gonna have to lay off four or how many workers are you not.
Going to be able to hire that you might otherwise -- -- Well it's it's a really it's it's obviously quite a dilemma.
We can't afford to that we not able to make up this additional.
36 cents an hour in productivity so we have to look for other ways to to base and make this.
This up.
And the way that we're focusing on -- were looking at technology.
Two to help drive the cost of the labor down.
We're hoping to use less.
Server hours as a result of using some new technological devices such as an iPad.
Or device -- but you're you're putting in technical terms -- server hours means fewer hours for working people right.
That is unfortunately correct yes.
If you -- -- some of these workers though I mean I I think that they look.
This sort of look at their.
Bottom line in this say why would much rather be making more money than -- they don't look concede that it could have far far reaching effects where they may not have that job in the future but if they could get one they'd rather be making more.
How do you have conversations with your employs about this have you talked to them.
What we've just actually we've actually we're testing a device called the -- cart and one of our restaurants in Sanford Florida and we're actually getting the servers involved in it it's it's not a device that we're.
That we're really looking at cutting a labor per say we're actually looking -- it to increase productivity.
So the servers are getting on board and they're helping us the customers use the device and and theoretically.
We'll have fewer servers firmly on the floor.
Ultimately the -- make more money they'll make more tips.
All right so John bottom line is the folks who defended.
Raising the minimum wage say it will have no effect.
On the job situation in America or in the states where it's done to which you say what.
I say absolutely the opposite.
This increase in and in minimum wage is driving is driving us to find other solutions other than hiring more people.
We are going to -- bring you back because we want to know how you're absorbing the situation when it does go into effect on that okay you John.
Absolutely thank you so much wonderful John -- he owns a hurricane grills and wings but also he -- he does have some Denny's franchises as well so this matters greatly to --
