Waffle Now Case Study

Servers at the Waffle Now restaurant are getting paid minimum wage plus tips but that is not enough for them due to income taxes. It is understandable that they need more money because of all kinds of bills they have to pay and being taxed on tips too. The manager at Waffle Now believes that would not be a good idea because for servers to get a pay raise, the menu prices would have to go up too and customers will be lost. Giving servers a raise will lead to laying off some employees or giving less shifts to each employee. In my opinion, the severs should not get a pay raise because that would cause the restraurant to have a low profit or maybe even be loosing money and will need to close down. Putting myself in the owners' shoes, it is understandable why the owner would not want to give servers a raise , it would not benefit the restaurant at all and if anything they want their restaurant to grow and profit as much as they can and this is not something the servers are thinking about. Servers are just thinking about themselves and how they aren't getting enough money but if they keep pushing the owners to do this, they all …show more content…
The restaurnt should raise menu prices just a little more so they can profit more and later on give servers what they deserve. She also says "... all seven states with increased wages had higher than average employment growth, an increase in restaurant sales, and no loss in employment." This is because some restaurant businesses have profitted enough to throw out tipped minimum wage, maybe because they are busier states that get more people to come around or have more tourists. Not all places are the same, some do better than others especially when it comes to restaurants because there is so much