HERE’S THE BEEF
Out of the kitchen, b ut still feelin g the heat
One Big Apple steak house owner’s beef with the rising minimum wage got him grilled on social media on Monday.
Willie “Jack” Degel, long an outspoken critic of rising minimum wages and their effect on restaurants, talked himself into the firestorm when he inadvertently knocked both his customers and his employees during an interview on national TV.
Degel, who owns Uncle Jack’s Steakhouse and starred in Food Network’s reality television show “Restaurant Stakeout,” first put his foot in his mouth when he was asked about how the rising minimum wage affects his eateries.
Degel said he can’t just pass the added cost to his customers because they are “not educated” about the economics of running a restaurant.
The businessman also said it was harder to keep his employees today because wait staff, like those at other restaurants, have a “sense of entitlement.”
After the comments, made on “Fox & Friends,” Degel’s Twitter feed blew up with hate tweets.
“Omg! I would never patronize a place that thinks so little of its staff,” jacottrell tweeted. “Calling your staff entitled and prefer when they were servants? Good grief man!”
“This makes me sad,” tweeted sdusn06. “We go have brunch there at least once a month Guess We will find another place.”
While Degel clearly fumbled the interview, many restaurant owners are feeling the pain of rising minimum wages.
Many eateries are seeing their profits squeezed, or worse, as wages rise.
The amount of vacant food service space in Manhattan has never been higher, according to real estate experts.
From 96th Street to Lower Manhattan, there are 3,700 available food service spaces — or more than twice the average number for a normal market, according to James Famularo, senior director of Eastern Consolidated.
“One could conclude that more restaurants are closing than opening,” Famularo said, referring to the Costar data he crunched.
“I’ve never handled more closures than in the past year,” said Carolyn Richmond, chair of Fox Rothschild LLP’s Hospitality Practice Group.
Rising minimum wages, rents and other costs have resulted in restaurants eliminating positions like busboys — and chains adopting new technology like kiosks that replace cashiers.
In New York City, many restaurateurs would like to add a catchall administrative fee to cover their increased costs — but City Hall has been sitting on a suggested change for at least two years.
Restaurants have asked officials to change a 40-yearold city rule to allow them to add a wage surcharge to bills.
The city’s Department of Consumer Affairs, which is responsible for the rule, did not immediately respond to a request for comment.
Such a surcharge is allowed in other cities.
Despite the rule, Degel and others have begun as- sessing a surcharge.
At his two-month-old Uncle Jack’s Meat House in Astoria, Degel tacks a 5 percent “fair wage fee” to all bills.
It goes to cover a mandated hike in the minimum wage.
Degel says the charge is necessary because his numbers “aren’t making sense anymore” — adding that everyone is concerned about next year, when the minimum wage goes to $15 from $13.