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At a Restaurant
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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. A 2024 operators survey shows their fears about the industry today and if the tip credit is eliminated:

40%

Restaurants Losing Money

40% of restaurants are not profitable in today's operating environment.

70%

Worse Is Yet To Come

70% of restaurants in Michigan believe the operating environment over the next 12 months will be worse than today. 

67%

Fewer

Jobs

If the tip credit ends, 2/3 will lay off employees with an estimated 40,000-60,000 restaurant jobs lost.

20%

Restaurants Would Close

If the tip credit ends, one-in-five full-service restaurants would close permanently.

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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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