(Mar 24/17) Restaurants Canada made recommendations to the Newfoundland Minimum Wage Review Committee that would help the restaurant industry maintain existing hours and create new jobs in this weak economy. We explained how recent increases in taxes and fees, as well as high food and energy costs, have put foodservice in a fragile state. On average, 33.8% of every dollar spent at a foodservice establishment in Newfoundland goes to payroll costs.
Here are our recommendations:
- Link future minimum wage hikes to increases in the provincial consumer price index.
- Introduce a separate minimum wage for liquor servers and inexperienced workers.
Newfoundland’s restaurant industry employs more than 15,000 people, including 5,400 young people under the age of 25, and is the leading source of first-time jobs.