Facing High Labor Costs From Minimum Wage Hikes, Chicago Restaurant Closes
23rd August 2016
A Chicago restaurant abruptly closed this week, with ownership blaming the “rapidly changing labor market” and a 27 percent increase in base minimum wage costs over the last two years as culprits for the collapse.
Cantina 1910, a farm-to-table Mexican restaurant located in Chicago’s Andersonville neighborhood, opened in September 2015.
Former Cantina 1910 employees said they were shocked to find out late Sunday evening of the closing, DNAinfo reported.
“We are unable to further raise prices in this competitive restaurant market in order to sustain the labor costs necessary to operate Cantina 1910,” Mark Robertson and Mike Sullivan, Cantina 1910’s owners, said in an emailed statement to The Daily Signal.
It’a amazing how many people seem unable to grasp the simple economic fact that if you raise the price of something people want less of it.