Higher wages but halved orders and restaurants in revolt: the case of the United States
In the United States it’s growing protest by restaurateurs. As reported by the newspaper la Repubblica, in the metropolitan areas where it was decided to raise workers’ hourly wagesmany catering companies have reacted raising the prices of their products and services.
This tariff increase, however, had the opposite effect to expectations, causing a sharp decline in orders by customers. Consumers, faced with more expensive price lists, preferred to go elsewhere where prices are still the same more competitive. As a result, numerous restaurants have seen drastically reduce your earnings and some would even be at risk of closure.
As the newspaper reports, “and so they have increased rateshowever, starting a small earthquake within the entire supply chain home deliveries of food: orders halved, less work for riders, less work for restaurants and protests from a good part of interested parties who ask city governments to turn back the hands of time, and of the law. At least according to what the Wall Street Journal reports which also says an order of a $20 burger or burrito today can cost twice as much.
Not to be underestimated is that ” the major online food delivery groups in Europe and in United States they have accumulated more than $20 billion in operating losses since they were listed on the stock exchange. The calculation was done by Financial Times which underlines how the losses have worsened after the ferocious battle for market shares that has characterized companies in recent years”.
“Last March i European Union labor ministers they gave the green light to the so-called rider directive, a law to regulate the contractual situation of digital works of home delivery platforms. The text is awaiting formal adoption by the European Council and after publication in the EU Official Journal Member States will have two years to integrate the provisions of the directive into national legislation. In Europe only they are counted 40 million platform workers“, concludes la Repubblica.
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