Could Michigan restaurants survive a $14 minimum wage?

 

SAINT JOSEPH, Mich.-- The Michigan Supreme Court is reviewing a law that would not only get rid of the tip credit in the state but also bump the minimum wage up to $14. The Michigan Restaurant and Lodging Association (MRLA) is defiant, saying such a move would be detrimental to the restaurant industry.

New data shows an industry in terrible shape; 40 percent of restaurants are not profitable, 60 percent are seeing less traffic than last year, and 55 percent are understaffed.

If the state were to lose the tip credit, MRLA predicts 20 percent of restaurants would close, two-thirds would lay off workers, and 94 percent would increase menu prices.

ABC57's Annie Kate spoke with Nardo, the restaurant curator at Nardo's Pizza, who had a different take.

"I'm all for paying everybody an equal wage, and then maybe they can do a tip share so then everybody becomes a team. So instead of falling on one person, you have a unit and probably less of a turnover." he said.