Says it will result in higher prices and hours cut.

TGI Friday’s CEO Ray Blanchette spoke in an interview on CNBC’s Squawk Box discussing President Biden’s proposal to raise the federal minimum wage to $15.

The current minimum wage is $7.25.

The President has proposed to erase tip credits. These changes would result in employers having to pay every worker at least $15 an hour, even if they receive tips.

The report says, In 43 states, employers can pay their workers as little as $2.13 an hour as long as that hourly wage and tips add up to the locality’s pay floor. Otherwise, the employer has to make up the difference. The tipped minimum wage was last raised in 1991.

The CEO said most of their kitchen employees make more than $15. The issue for him comes in when the wait staff could earn the new minimum wage.

In the front of the house, where we spend a lot of hours, we would clearly be cutting back hours if something that dramatic happened. And we’d have to materially raise prices, which doesn’t feel like that would be right.

If the cooks are making $15 to $18 an hour and then suddenly the waitresses are making $40 an hour, that doesn’t make any sense to me.

Ray Blanchette

Blanchette was also asked if his employees would mandated to the Covid-19 vaccine. He said the company would not, and “probably” offer a financial incentive to get one.


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If the minimum wage is raised and the tip credits are erased completely off the table, that will guarantee the closure of even more restaurants and other businesses, especially the hospitality sector that has been obliterated in 2020 and will continue to do so this year and in the long run.

Blanchette was being professional as to not hurt his company, but his restaurant chain, and many others like it, will never be able to afford this. If Biden’s ridiculous proposal is passed (and it would not surprise me if the Senate narrowly votes it in), then this will initiate the final culling of the middle class as the WinePress has been reporting on.

Friday’s has been greatly struggling along with other restaurants, and has had to close locations all across the country this past year. This proposal will shutdown this chain and many others.


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1 Comment

  • People are concerned about this. Especially waittresses & single mothers who rely on tips, making upwards of $400 on a weekend at Texas Roadhouse in tips. They know the prices go up & the tips will stop, & they’ll make even less. I know that’s not God’s order, but it’s been a rough year for those families & their children shouldn’t have to pay because the socialists want more taxes before they crash it all : – (. Pizzeria said his $12 pizza would have to go to at least $19 to have even a margin of profit after overhead. Those businesses already operate on the slimmest of profit margins. Insanity, and playing right into Gates’ and the Reset crew’s hands. God help us to witness to those that will be hurting & to provide material help wherever we can: more people will be waking up to how much those politicians really ‘care’.

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