Chicago business owners fear changes to minimum wage rules could kill jobs

CHICAGO - He owns several of Chicago’s most popular restaurants and bars. But like others in the industry, Sam Sanchez fears proposed changes to minimum wage rules could kill jobs.

A Moe’s Cantina and four related restaurant bars in Chicago employ about 600. The owner says those who collect customer tips average more than $22 an hour. He wants to keep counting tips as wages.

“We’re not disputing the increase of minimum wage. What we need to do is keep tip credit to be able to sustain our business,” Sanchez said.

Some want the City Council to abolish the tip credit. They say tipping forces servers to endure sexual harassment and that white servers get bigger tips than others do.

Employers say they would be forced to automate, like some fast food outlets. Customers at Wow Bao order via computer. Then, sometimes without seeing a human employee, get food from a numbered display window.

“Trying to operate a bottom line that works. And, by raising the minimum wage, it's making us rethink the business,” said President of Wow Bao restaurants Geoff Alexander.

At Moe’s Cantina, Sanchez is rethinking, too.

“You walk up to the bar. Get your own beer. You place your order at the window. You get a little pager. You pick up your food when you come back,” Sanchez said.

While negotiations continue over the details, supporters hope the City Council will vote as soon as next month to accelerate increases in the minimum wage in the city of Chicago.