Members of the NYC Hospitality Alliance have signed a letter to New York City Mayor de Blasio requesting restaurants be allowed to include an optional disclosed surcharge on dining checks.
Around 100 full-service restaurant operators based in the city, including Clydes, Daily Burger, Nobu, Tao, Smith & Wollensky and Quality Meats signed the letter to make the law effective everywhere across the US.
As stated in the letter, the main reason behind the move is due to the impact of increased wages including nine mandated wage hikes and rents over the past years on the businesses stated and employees.
The group also states that restaurants will be offering a 100% minimum wage hike for tipped employees, a 71% minimum wage hike for regular employees and 36% minimum wage hike for exempt employees by the end of this year.
In addition, restaurants are downsizing tipped employees including, servers, bartenders and runners, cutting working hours of other employees, changing menus, and even shutting some locations over the past three years.
Restaurant operators claim that they were forced to increase menu prices, which is not helping them to cope with mandated wage hikes and real estate costs.
The group also states that restaurant operators are not planning to open any new locations in New York City until they are allowed to use surcharge.