Reply to Bowser repealing minimum wage increases. What

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The PP who noted MANY other states have no tipped wage and still have successful restaurant industries including plenty of locally owned restaurants had a good point. Let's engage with it honestly.

What makes DC different that might make this harder here?

I think a major issue is rents. Much of DC's commercial real estate is owned by developers and landlords who are insufficiently motivated to rent to restaurants at a rate that would enable them to both pay their employees a standard wage AND turn a profit (or even break even). DC does not penalize landlords for letting storefronts go empty for extended periods. So they can charge high rents and wait for someone willing to pay it. Restaurants who want to survive rely on the ability to pass the cost of labor into customers. I-82 gets in the way of that.

(Note this problem impacts other industries in DC -- there is a reason DC often lacks enough daycares or auto shops. Ever needed something and quickly realized you have to go to the burbs for it? This is a major reason why.)

But even though DC is very friendly to commercial landlords and barely regulates empty commercial spaces, it regulates the crap out of restaurants themselves and navigating that regulatory framework is expensive. Licensing in particular is really hard and many restaurants have to hire experienced staff just to make sure they can obtain their liquor license in a timely manner. ANCs can also be a hold up, and some are egregiously bad.

Other places that have eliminated tips have friendlier environments for the restaurant industry. DC is hostile to the industry so eliminating the tipped wage winds up being the straw that breaks the camels back. But it's not really the source of the problem.

Notice that there is no concern among commercial landlords about the restaurants closing. No WaPo stories of landlords lamenting losing good tenants or being unable to afford to own these spaces anymore? They barely care. Tax write off. It will now sit vacant for 10 years and they won't feel it at all.[/quote]

We had a thriving restaurant scene for a *very* long time before I-82 came along. [/quote]

Oh yes, things were so great way back for the restaurant industry in 2021 and 2022.[/quote]

Sounds like you haven't been here very long, if your memory only goes back to covid. [/quote]

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