Renowned chef Robert Irvine recently voiced his concern about the impact of rising minimum wages in California on small businesses, suggesting a potential 20% drop in family-run ventures. He described the dynamics of increased wages as a “double-edged sword” – a boon for improved living standards but a curse for the financial health of small businesses.
Emphasizing the importance of balance, Irvine underscored the need for government support to help businesses adapt. He suggested the rollout of effective strategies and policies to prevent job losses, especially among family-run businesses that form a crucial part of America’s economy.
During a chat with Fox News Digital, Irvine noted that the appeal of higher wages could lead to undesired outcomes like job cuts and price increases for consumers. He attested to scenarios where businesses, especially smaller ones, grapple with inflated labour costs. Higher wages could lead to increased automation and ultimately fewer jobs, he warned.
Referring to nationwide implications, Irvine stressed that if other states adopt California’s wage model, they could face similar difficulties. He said the balance between fair wages and sustainable business practice is a complex issue requiring careful consideration.
Reacting to the minimum wage increase in California, Irvine noticed a 77% uptick in service queries at restaurant tech provider GRUBBRR.
Irvine’s tech proposal for wage-pressured businesses
He is currently collaborating with GRUBBRR on “Restaurant Revamp,” a project aimed at overhauling struggling restaurants through digital transformation.
Amid rising inflation and food prices, Irvine proposed that technology could be key in preventing restaurant closures or mass layoffs. He suggested that businesses grappling with operational costs could capitalize on technological advancements for cost-efficiency.
Crucially, he underscored that tech adoption does not necessarily mean layoffs. According to Irvine, technology could enhance customer experiences and result in better labour management without cutting jobs.
Irvine anticipates a significant 44% of fast-food restaurants to incorporate tech into their operations by year-end. He believes this shift could result in an average customer spend increase of up to 35%, due to the growing trend of digitization and booming smartphone usage among patrons making online services such as ordering and payment more accessible.
While preaching caution about potential tech implementation costs and cybersecurity risks, Irvine backed choosing the right tech partner that understands a business’s unique needs and contributes positively to its profits. Endorsing this belief, he shared, he has already implemented these practices in his own restaurants, accruing substantial benefits.
