[Editor’s note: That would include most restaurants in East Boston]
It is true, if we do not vote “no” ballot Question 5, all restaurants will become corporate owned and operated. Coming from someone who just takes pretty videos and pictures of food, you may need me to elaborate so my warning is not misconstrued as hyperbole. Allow me the latitude to fully buttress my thesis by the conclusion.
Before discussing the math, we must clearly state that a “yes” vote will mean tipped employees will make less.
There is no scenario where tipped employees make more from this proposal passing; and we have documented proof from this law being implemented in Washington, D.C. and California.
This is why, and I state this with zero exaggeration, every tipped employee I have met is voting ‘no’ on 5.
My job requires me to constantly visit restaurants, work with bartenders and waitstaff and talk to them as well as the owners. Never has there been a political issue where they have been so united, and they are passionate and against this ballot measure. Tipped employees take pride in having regulars and seeing their skill reflected in a great tip. Forcing tipped employees to pool their tips or not get them at all would cripple the industry.
The restaurant industry survives based on a smaller profit margin than most industries, 10%-15%. Given the amount of money needed to start a restaurant, this makes ownership a risky proposition unless you are properly experienced. The “mom and pop” restaurants have been shrinking because their profit margins have shrunk further based on inflation and food costs rising too quickly for menu prices to adjust to compensate.
By shifting tipped employees to minimum wage, and making all tips pooled and shared amongst all workers, will create an environment where only a large corporate restaurant chain will be able to absorb those costs overnight, even if implemented “gradually.”
You may ask why anyone, even corporations, would want this.
Corporate restaurants, and even franchises, are really in the land business. They invest in a plot of land and then put a restaurant on it so that,over time, the land value increases and when they sell it or borrow money against it, the value always continues to increase. These corporations do not need to worry about a restaurant being successful, having good food or good service, because they are focused on revenue generated by the land. So if more locations for them to buy became available, while their competition decreased, corporate restaurants would just expand further.
Vincent A.J. Errichetti is the owner of Taste Of Massachusetts Brands, Errichetti Media Digital Marketing, and past political consultant for Scott Brown.
