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NYC Hospitality Alliance Rising Labor Costs Survey

January 24, 2019
By New York City Hospitality Alliance

a survey of staffing decisions in New York City full-service and fast-food restaurants in 2018 and for 2019

To gain insight into the labor market, between November 28th and December 27th, 2018, the New York City Hospitality Alliance conducted a survey to investigate how restaurants in the city of New York are addressing increasing labor costs. The operators of 574 establishments responded to the survey, which represents
324 full service restaurants and 250 limited service restaurants.

The labor market, labor costs, and labor laws have been influencing significant changes in full and limited restaurant industry fundamentals. Much of the financial and regulatory pressures on restaurants have occurred while Andrew Cuomo has been governor of New York State. The pressures heavily driven by recent labor mandates in New York City include: doubling the tip wage in a mere three years, six consecutive annual minimum wage increases, a $300 increase to the minimum weekly rate for salaried employees, paid sick leave, healthcare, workers’ compensation, taxes, compliance, and other related costs. This also includes the upward pressures these increases place on wages as an expense.