Currently, many servers and bartenders in Michigan make less than $5 an hour, with their tips making up the difference.
The state plans to do away with that model, gradually increasing wages through the next few years, until they hit $12 an hour.
The change concerns some restaurant owners because the first price increase is coming up— wages are set to go to $10 an hour on February 21, 2025.
It’s a busy Sunday afternoon at Real Food Cafe in Alger Heights in Grand Rapids.
“This particular restaurant uses about 15,000 server hours a year,” Restaurant Partners Management Chief Operating Officer Pat Hilton said.
Those 15,000 hours are going to cost more in the coming months, to the dismay of Pat Hilson, Chief Operating officer for Restaurant Partners Management.
“Michigan restaurants are facing an impending disaster with the elimination of the tip credit,” Hilton said.
Hilton says these servers make on average $25 to $30 an hour, including their tips.
An increase in the hourly cost of labor would put Real Food Cafe in the red, Hilton said.