Could a minumum wage hike lead to higher prices and unemployment across York County?

York County natives appreciate a bargain, especially when it comes to food.

More than a few times in my career at the York Daily Record/Sunday News, I’ve found myself speaking to residents lined up for a promotional free meal dished out by chains such as Denny’s and Chick-fil-A.

And, although not free, pizza buffets like Cici’s Pizza, Infinito’s and Palasta have found success across the county serving seemingly endless supplies of food for one low price.

However, at least one local owner is concerned that a price hike could be in order should the minimum wage jump by 24 percent.

Last week, during his State of the Union address, President Barack Obama called for raising the minimum wage from $7.25 to $9 an hour.

A good idea? Sure, if you’re making $7.25 per hour.

A majority of the workers who staff CiCi’s Pizza in Manchester Township earn $7.25 per hour, said Mitch Piskur, owner of the restaurant.

And, while he doesn’t object to an increase in the minimum wage over time, Piskur said such a hike would likely mean higher prices for his customers.

“It’s an increased expense and it would likely have to passed on to the consumer,” he said. “Not only would payroll would be higher, but payroll taxes would go up. It would be tough for a small business owner to absorb that cost.”

In addition, to help better control payroll expenses, Piskur said he would likely consider a reduction in staff.

“I think, overall, for small businesses, unemployment would rise,” he said. “I don’t see it any better than a Catch-22. Raising the minimum wage doesn’t mean you are raising revenue.”

This entry was posted in Consumer issues, Coupons, credit, Economic Outlook, Green business, Investing, Jobs, local business, Newspapers, On the job, payment, Power outages, Real estate, Restaurants, Retail, Sean Adkins, Shopping, Small business, Social Media, Your money. Bookmark the permalink.

One Response to Could a minumum wage hike lead to higher prices and unemployment across York County?

  1. Hanna Barbera says:

    If I have to pay a little more in order for my fellow citizens to be able to meet their basic needs, so be it.

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