NY Raises Minimum Wage To $15 an Hour, Here’s How White Castle Responds

While liberals insist that raising the minimum wage to $15 an hour is the right thing to do, in fact it is proving to be devastating to many businesses in cities across America.

If you’ve ever eaten a White Castle burger, then you know just how delicious they are! Imagine a world without WHITE CASTLE!

Well, raising the minimum wage just might put them out of business.

Jamie Richardson is a vice president at White Castle, the chain of famously white-painted and turreted burger joints specializing in slider-style hamburgers in the Midwest and Mid Atlantic and he believes that “there is a better way to get people out of poverty than hiking the minimum wage.”

Mark Antonio Wright at National Review reports that White Castle, established in 1921 in Wichita, Kan., now operates more than 400 locations, with many in the New York City metropolitan area, which makes the news of New York governor Andrew Cuomo’s signing a bill that steeply hikes the minimum wage deeply personal. The wage will go from $9 to $15 an hour by 2018 in New York City.

Unfortunately, despite the Castle’s Empire State history, the road ahead may be difficult: “We’re disappointed. What this means for White Castle is we really have to evaluate how we manage our business,” Richardson tells me. “About 30 percent of every sales dollar covers the pay of our hourly workers, and that doesn’t include management.”

“It’s our biggest investment, our biggest cost. And it’s one that if we see increase dramatically through fiat, and we don’t do anything — it’s unsustainable,” Richardson says. “We are in uncharted waters,” he added.


“Is there any room to raise prices to cover costs?” Richardson muses. “We think we’d need to increase menu prices by something like 50 percent. It’s not something we’ve done before. It’d be catastrophic.”

Of course, if prices at fast food joints rise 50% then a lot of people will opt to go to the grocery store and cook up their own burgers more.

“Candidly, this could create a whole generation of kids who won’t get their first job,” Richardson laments. “We’re in tough neighborhoods — and White Castle hasn’t abandoned those neighborhoods. On the surface, higher pay seems noble, but it’s not – because it denies the reality of the free-enterprise framework that has allowed small businesses like ours to thrive.”

“As a family-owned business, White Castle has been around a long time — but now we have to assess things and ask: Where do we need to be at, by when, to make sure our business remains viable?” Richardson says. “New York says, ‘We’re open for business,’ but sometimes it seems like the only door that’s going to be open is the exit door.”

This is just another example of how liberals have no common sense. They have no comprehension of how basic economics actually works.

Their policies will destroy small businesses all over America.


God Bless.

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