Restaurant Recession Looms With Coming Wave of Minimum Wage Hikes
As if the restaurant industry doesn't already face enough headwinds, come January 1 it will face a tsunami of hikes to minimum wage rates. Some 24 states and the District of Columbia will increase the base rate in 2020, just as restaurants will likely be entering a recession.
The industry is already slowing to a near crawl, and though comparable-store sales rose over the last two months, it's all been based on higher prices and a better product mix; guest traffic is still falling. The profit picture for many chains may turn very ugly soon.
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Source Fool.com
