Thursday, January 11, 2007

East Bay restaurants hike prices

In the Contra Costa Times, my friend and former co-worker James Temple writes about how East Bay restaurants are hiking prices anywhere from 5 - 25 percent as the state minimum wage rises to $7.50 from $6.75. Next year it is to rise to $8.

Still not the $9.14 SF minimum wage. And the East Bay also doesn't have the $1-$2 per hour health care payments or the sick leave rules of SF.

But certainly this could dampen the (from what I am hearing) continuing interest of SF restaurants in Oakland and other East Bay locations.

James writes:
Concord-based Digger's Diner expects a monthly cost spike closer to $5,000, or $60,000 per year, said Kathy Sturgill, the original owner of the 13-year-old restaurant now operated by her son and niece. After three years without adjusting menu costs, the diner plans to ratchet up prices by as much as 25 percent.

Walnut Creek-based Dudum Sports and Entertainment, which among other restaurants runs Bing Crosby's, McCovey's and Joe DiMaggio's, expects the change to knock a percentage point off its profitability margin. It hasn't increased menu prices but "of course it will pass along to the consumer at some point," said Mark Wooldridge, the company's chief operating officer.

More at the CCT site: Restaurants adapting to rising wages



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