Amid rising labor, health care, rents, food costs, and throw in drought and fuel related surcharges, it’s a wonder why anyone would want to open a restaurant in this business climate. I can’t imagine living in a city where only big business thrived but it’s not one I personally would want to live in. The City has stacked the deck against small business in our town and it’ll will be very interesting to see how this pans out leading into 2019 when small businesses will be subjected to the highest wages in the nation. A Huffington Post article posted today outlines these challenges and how restaurateurs are altering their approach for dealing with them.
This spot at the prominent intersection of MacArthur and Adeline “For Lease to a Restaurant/Cafe” has failed to attract any occupants since it was completed in 2009.
Surviving & Thriving: The Top 3 Challenges Facing San Francisco Bay Area Restaurants
This year was the first time in United States history that Americans spent more money on dining out than groceries. Nowhere is that more evident than here in the San Francisco Bay Area, where new restaurants have been opening up almost weekly. The strong economy has allowed pop-ups to become brick and mortars, cooks to become restaurateurs, and others to expand their restaurant empires. However, despite the seemingly rosy outlook, restaurateurs are stressed about a few trends that are looming.
San Francisco, Oakland and Emeryville have all raised their minimum wages to $12.25, with Emeryville’s jumping to $14.44 for employers with more than 55 employees. These jumps were significant particularly in Oakland and Emeryville, where the leap was 36% (60% in Emeryville for the larger employers). And although the San Francisco increase was more modest, because it already had a higher minimum wage than the other jurisdictions, San Francisco’s minimum wage will reach $15 an hour by 2018.
Read more on HuffingtonPost.com →