Voters nationwide never saw the word “restaurant” on their election ballots on Tuesday. Still, many voted on ballot proposals that, if passed, would have significantly affected the industry’s profits.
According to a study released earlier this year by New York University, a restaurant’s net profit margin is at 10.66 percent, with fast casual and fast food restaurants reporting meager net profits of 2–6 percent. With those numbers in mind, any introduction of legislation or public mandates affecting hourly wages and taxation on tips could tremendously affect the viability of restaurant ownership. Knowing this, larger restaurants, chains, and advocacy organizations have ramped up their lobbying efforts.
