Even the Toronto Star is speaking the truth ...
"A 32-per-cent hike in minimum wage rates will cause many small businesses to go out of business, especially those of us in the labour-intensive restaurant industry,"
https://www.thestar.com/opinion/comm...-to-close.html
The provincial government’s recent announcement raising the minimum wage to $15 an hour in the next 18 months garnered headlines like “a good day for the little guy.” We beg to differ. The other “little guys,” hard-working and risk-taking owners of Ontario’s small business community, will have more bad days making ends meet.
A 32-per-cent hike in minimum wage rates will cause many small businesses to go out of business, especially those of us in the labour-intensive restaurant industry. Ontario restaurants have the lowest profit margin in Canada, according to both Statistics Canada and industry association Restaurant Canada.
The average Ontario restaurant owner has only 10 employees with annual revenues around $689,000. Ontario restaurateurs earn the lowest pre-tax profit in Canada, 3.4 per cent or $23,450 per year. This wage hike will cost them $47,000 per year.
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Premier Wynne has backtracked on her promise to let the consumer price index determine annual minimum wage increases and keep it out of politics.
I talked to some friends I know in a local restaurant and they are just at break even, when you look at with $700+ electric bills (cooking, heat, water heating all gas and about 1/3 that), increases in meat and produce etc. Their plans are to not hire full time staff, but probably will replace the higher costing full time staff with several part timers (students likely as the lower pay option) and spend more of their own time working.
P.S. I stopped in at the restaurant near to my friends, seems the previous owner lasted just over 1 year from start of construction to selling cheap just to get out! .. and the new owner was already complaining about expenses and costs....