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At a Restaurant

SAVE MI RESTAURANTS

Restaurant and bar operators agree: eliminating the tip credit will increase menu costs, kill server jobs and shutter 30,000-40,000 restaurants. An operators survey shows their fears about the future of the industry:

91%

Increase Menu Increases

A vast majority of operators, 79%, anticipate menu price or room rate increases by at least 10%. A third see price increases of 20% or more.

57%

End of Full-Service

More than half of Michigan's full - service restaurants will be forced to transition to counter service or drive-thru only, killing jobs and reducing customer service.

84%

Cut Jobs

Immediately

84% of operators estimate laying off at least 10% of their workforce.  61% said they'd layoff a quarter of their tipped employees.

48%

Restaurants Would Close

 

Nearly half of operators said these changes would make it no longer worth continuing forward as restaurant owners. 

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WHY YOUR RESTAURANT IS AT RISK:

THE PROBLEM

Michigan's Supreme Court is now reviewing the constitutionality of a 2018 action by the legislature called “Adopt and Amend”.

 

Should the justices rule that the legislature acted improperly, the 2018 proposal that eliminates the tip credit and increases the minimum wage, among other things, would likely become law and our industry would be plunged into an instant economic crisis.

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THE DAMAGE

The resulting economic tsunami would end the tip credit and raise the minimum wage for tipped workers to about $14 per hour -- a 250% increase.

 

Operators would have no choice but to adjust, resulting in 40,000 lost jobs, higher menu prices for families and thousands of closed restaurants and empty storefronts. 

OPERATORS' FEAR FOR THE FUTURE OF THE INDUSTRY

SMALL BUSINESS

We are a small independent family restaurant. We pay good wages, free health care and bonuses. If this goes through this could be the tipping point for us.

THE AMERICAN DREAM

The American dream of owning your own business will be going away permanently with these changes. They will only hurt the people they claim they are helping.

LOWER WAGES FOR SERVERS

Our servers & bartenders make at least $20 per hour in tips alone and this is on a very slow day. They average between $27-35 per hour...The servers are worried that people will stop tipping as well if our prices increase.

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Contact your legislator

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