Restaurant Owner: Minimum Wage Hike Will Cost My Businesses $150K This Year
A Colorado business owner is warning that state minimum wage hikes will cost diners and may not be sustainable in the long run.
Rex Brice, the owner Rex's Family of Restaurants, said on "Fox & Friends" today that many restaurants - including his own - will respond to the new laws by raising their menu prices.
Brice said he expects to incur $150,000 in added costs this year from having to pay higher wages to employees across his six restaurants.
"I am concerned that over the next four years, as this minimum wage hike rolls out, that it is not something that's sustainable and that price increases may have to be greater than 5 percent," said Brice, adding that he has budgeted a 5 percent increase on sales, but a 9 percent increase in labor costs for this year.
"That's not a pretty picture. It's not good math," said Brice.
The minimum wage in Colorado, now $8.31, is set to be gradually increased to $12 an hour in 2020
Watch the interview above.