*By Chloe Aiello* Nationwide minimum wage hikes mean consumers should expect to see price hikes on food and beverages, too, "Bar Rescue" host Jon Taffer told Cheddar. "I'm guessing that we're going to see a good 4 to 7 percent increase over the next year," Taffer said. Beginning Jan. 1, 21 states and Washington D.C. either raised or will raise their minimum wage rates to accommodate cost of living increases, according to the [National Conference of State Legislatures](http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx). Workers in industries like retail and food service may be celebrating strides in the "Fight for Fifteen," [as one mobilizing group is formally known](https://www.motherjones.com/politics/2019/01/are-you-getting-a-raise-thanks-to-new-minimum-wage-laws/), but Taffer argued the hikes could prove ruinous to businesses, especially low margin restaurants and bars. "With each revenue dollar, we can spend approximately 28 to 30 percent on payroll. If our cost per hour goes up 20 or 30 percent, we can't allow our payroll costs to go up ... We are not profitable at those numbers," Taffer said. He speculated wage hikes would be reflected in higher costs for food and beverage as well as in an increased emphasis on more cost-effective items on menus. "There's a whole science of menu engineering where I can steer your eye and steer your preferences to buy menu items that are inherently more profitable for me," Taffer said. Taffer also argued that the government shutdown is undermining consumer confidence, which could also impact restaurants. "Even middle America ー their income is up, unemployment is down, retail sales are up, but yet people are so concerned when they hear about the stock market. And then the attitude in Washington I think has a major effect on consumer confidence and our ability to spend and takes risks and go out into a spend environment," Taffer said. For full interview [click here](https://cheddar.com/videos/bar-rescues-jon-taffers-advice-for-entrepreneurs-no-excuses).

Share:
More In Business
Tech leader who navigated the internet’s 90s crash weighs in on AI
Former Cisco Systems CEO John Chambers learned all about technology’s volatile highs and lows as a veteran of the internet’s early boom days during the late 1990s and the ensuing meltdown that followed the mania. And now he is seeing potential signs of the cycle repeating with another transformative technology in artificial intelligence. Chambers is trying take some of the lessons he learned while riding a wave that turned Cisco into the world's most valuable company in 2000 before a crash hammered its stock price and apply them as an investor in AI startups. He recently discussed AI's promise and perils during an interview with The Associated Press.
Tesla sales jump after months of boycotts
Tesla reported a surprise increase in sales in the third quarter as the electric car maker likely benefited from a rush by consumers to take advantage of a $7,500 credit before it expired on Sept. 30. The company reported Thursday that sales in the three months through September rose 7% compared to the same period a year ago. The gain follows two quarters of steep declines as people turned off by CEO Elon Musk’s foray into right-wing politics avoided buying his company’s cars and even protested at some dealerships. Sales rose to 497,099 vehicles, compared with 462,890 in the same period last year.
Load More