Finance

White Castle VP suggests that minimum wage hike could raise prices by 50%

White_Castle,_Indiana,_USA

Mark Antonio Wright of National Review spoke with White Castle Vice President Jamie Richardson, who told him:

“There is a better way to get people out of poverty than hiking the minimum wage.”

Following plans to increase the minimum wage throughout the state of New York, Richardson discussed the effects that the bill signed by Governor Cuomo could have on their stores. He described how their “biggest investment, [their] biggest cost” is the hourly salary for their workers, which equals about 30 percent of every dollar produced.

“We think we’d need to increase menu prices by something like 50 percent. It’s not something we’ve done before. It’d be catastrophic.”

Richardson continues to describe his concerns with the wage hike: “Candidly, this could create a whole generation of kids who won’t get their first job. We’re in tough neighborhoods — and White Castle hasn’t abandoned those neighborhoods.”

“On the surface, higher pay seems noble, but it’s not – because it denies the reality of the free-enterprise framework that has allowed small businesses like ours to thrive.”

(H/T National Review)

Follow the author on Twitter: @rsaydlowski.

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