New York City restaurants propose "wage surcharges"

NEW YORK (FOX5NY) - With huge government-mandated wage hikes on the way, a large group of New York City restaurants is asking city leaders for permission to add a surcharge on all diners to help cover rising expenses.

The surcharge could range from 3 percent to 5 percent if restaurants choose to add it.

In a letter to Mayor Bill de Blasio, the restaurants said: "Our payrolls and rents have skyrocketed, which has had a catastrophic impact on our businesses and employees. If you want to support local restaurants and staff, allow us the option of using a clearly disclosed surcharge to generate the revenue to simply survive."

The restaurants say by the end of 2018 there will have been nine mandated wage increase in three years including a 100 percent increase in the minimum wage for tipped workers and the regular minimum wage jumping 71 percent.

Servers, bartenders, bussers, and food runners are being laid off because of the wage jumps, the restaurant owners claim. Other workers have had hours cut.

Full-service restaurants are now closing in "unprecedented numbers," according to the warning.

"We have been waiting in good faith, for two years, for our city to allow us to use a clearly disclosed surcharge. During that time our business has been further damaged," the letter went on to say.

Some of the restaurants behind the letter include Smith & Wollensky, Tao, Sylvia's, P.J. Clarke's, and BLT Prime.

Gov. Andrew Cuomo is considering raising the minimum wage for tipped employees to $15 an hour, the same as the regular minimum wage.

Restaurants in California and some other states are already adding surcharges.