
Stock photo of a restaurant kitchen (Photo via Pixabay)
Minimum wage rising in B.C. is expected to acutely affect restaurants.
As of yesterday, minimum wage is now $14.60, an increase of more than five percent. And servers wage has gone up nearly 10 per cent to $13.95.
Owner of Red Beard Cafe in Kamloops Mitch Forgie says it’s a problem that profit margins are so slim in the restaurant industry.
“I think the restaurant industry specifically has been in a precarious position for a while. And I think that I could probably talk at nauseum about a lot of the reasons why that is.”
Forgie admits the wage hike will hurt for his business, noting there’s other cost pressures as well besides payroll.
“The cost of produce has gone up wildly, especially since COVID. Beef prices are up 30-40 per cent, pork is up.”
As of June 1, 2021, the minimum wage for all workers in B.C. will be $15.20 per hour.
“We need to have economic sustainability as well as having environmental and social sustainability. And minimum wage going up, if $1.20 per hour is what’s breaking your business then I think we have a problem in the industry,” Forgie says.
“Hopefully it’s going to start a broader conversation about how the industry itself can be sustainable long term.”