Higher mininum wage for servers could hurt restaurants

By Shaina Humphries
Published On: Mar 16 2013 11:37:51 PM CDT
Updated On: Mar 17 2013 07:38:06 AM CDT

Shaina Humphries reports.


Higher wages for servers may sound like a good thing, but for the owner of a Des Moines restaurant, it could badly affect restaurants and customers alike.

With his Fair Minimum Wage Act, Sen. Tom Harkin wants to raise the minimum wage from $7.25 to $10.10, saying all kinds of businesses could benefit from a higher minimum wage.

"If the minimum wage had kept pace with inflation since 1968, it would be $10.56 an hour right now," said Harkin. "(The minimum wage) has not been raised since 2007, and it's fallen way behind."

Harkin also wants to raise the minimum cash wage for tipped employees, like restaurant servers. In Iowa, the current wage for servers is $4.35 an hour.

Lisa Kruger, co-owner of Barattas in Des Moines, knows her waitstaff can't survive on their minimum wage, but she said that's the point of tips.

"By the time they pay taxes on their tips, they really don’t get a check," said Kruger.

Kruger said increasing her servers' tipped wages by Harkin's standards will only make everyone's job harder in the restaurant.

"The public gets really fussy when prices go up, and I think that they would have to go up a lot," said Kruger.

Harkin said a higher minimum wage will put more money in everyone's pockets, bringing restaurants more business.

"Probably one of the best economic jolts you can give to neighborhood businesses is to raise the minimum wage," said Harkin. "When you raise the minimum wage, people who get the minimum wage spend it locally."

Kruger said most restaurant owners would be against paying servers more, but a smaller increase may be reasonable.

"I think that's a big jump," said Kruger.


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