Mar 9, 2017

Diners are paying for rising wages at restaurants

Chris Yucus/NewsTribune via AP

As labor costs are rising, regional chain restaurants in states like Arizona, California, Colorado, and New York are adding a surcharge between three and four percent on diners' bills. This is intended to offset increasing wages instead of charging extra on menus upfront and scaring off consumers, according to the WSJ.

Why it's happening: The federal government hasn't raised the minimum wage since 2009 from $7.25, which is putting pressure on states to do it themselves, and 27 states have had an effective minimum wage increase since January 2014.

Why it matters: Tomorrow the jobs report will give a better sense of how widespread rising wages are. The Fed is meeting next week to announce whether it will raise interest rates, which will almost certainly affect wages as well.

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