Content provided in partnership with

Food & Beverage Industry

Cities that Sizzle

Nation's Restaurant News, Jan, 2001

<< Page 1 Continued from page 50. Previous | Next

Uotto observes that restaurateurs or any other business with more than five. employees under state law must pay 98 percent of all health insurance costs, and that this is a substantial burden for the business owners.

McCain is working to change that law and to combat a number of other enacted or proposed laws.

For example, now that state and federal lawmakers are launching their 2001 sessions, he and his allies intend to oppose state and federal efforts to raise the minimum wage, which is currently $5.25.

With unemployment at around 4 percent, many restaurants have found themselves paying a premium for labor of a dollar or two above minimum wage. A higher minimum wage could strain restaurateurs, as the premium would rise as well.

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

Gee already has noticed the effects of a labor shortage. He recently was lunching at a restaurant that, he was told, was "booked solid." Even so, he looked around and noticed a number of empty tables.

"I realized that as far as the restaurant was concerned, it was booked," Gee says. "It did not have the staff to handle all its tables."

McCain also wants to raise Hawaii's longtime tip credit of 20 cents to at least 20 percent.

"If they raise the wage and not the tip credit, it takes the flexibility away from the operator to compensate the back-of-the-house," he says.

He also believes that proposals by state legislators to raise alcohol and cigarette taxes and to ban smoking in restaurants could be devastating.

"We are dependent on our visitors, and many of them from Asia smoke," McCain says. "We could insult people if they could not read the English sign that says 'No Smoking.' We're for discussing whatever accommodation programs might be available, but an outright ban would affect our city's economy."

One relatively new requirement that could hobble seriously and even destroy some restaurant operators is a recent requirement to comply with tightened fat, oil and grease disposal controls. Under the current regulations, when it comes time for a restaurant to renew its sewage permit -- which must be done every five years -- the probability is high that its owners will be forced to spend thousands or even tens of thousands of dollars on a new grease trap.

The requirement came into effect in 2000 because of a federal court consent decree. The Environmental Protection Agency and State of Hawaii sued Honolulu city and county under the Clean Water Act, and the private sector will end up footing the bill, McCain says. He maintains that this action has the potential to at least put mom-and-pop restaurants out of business.

"Every little governmental area has something it wants to impose that would make it harder for restaurateurs," McCain "They are well intended, but when you add them all up, you've got an unfriendly business climate. But it is Honolulu, and a lot of people are willing to work hard to be here."

HONOLULU

(2001 estimates, except as noted; growth rates are eat. 2001 vs. est. 1999, except as noted)

Food & Beverage Industry

Cities that Sizzle

Nation's Restaurant News, Jan, 2001

Find Research Guides for:

Find Featured Titles for: Business

Most Popular Articles in Business

Most Popular Publications in Business