Washington Restaurant Survey if $15 min. wage increased:
80% of full service respondents said they would either lay off employees, close their business, declare bankruptcy or close a location.
69% of Full Service Restaurants said they would lay off employees.
49% of Quick Service Restaurants said they would lay off employees.
45% of both Full and Quick Service Restaurants said they would close or close a location.
Due to labor costs alone, restaurants will effectively turn into non-profits.
...
Small Margins
It is difficult for restaurants to turn in a profit. As of 2013, Seattle full service restaurants had an average net income of four percent before taxes.
Heavy Debts
Fifty-eight percent of an average restaurant’s annual total revenue equals debt service. Sixty-two percent of restaurants that responded to WRA’s survey did not earn enough profit, in 2013, to meet fundamental capital investment “pay off” plans.
...
Impact of $15 Minimum Wage on Labor Costs
If the minimum wage jumps to $15 per hour, the effects of this mandate would be far reaching. The cost of labor, in restaurants would increase an average of 34 percent, moving the cost of labor to 47 percent of the restaurant dollar. This minimum wage increase would lead to annual operating losses of under existing models. No business can sustain such losses. Restaurants would need to make big changes in order to survive.