Ontario businesses raise prices, consider cutting staff as minimum wage increases
TORONTO — Ontario’s new $14 per hour minimum wage does not take effect until Jan. 1, but Chris Stevens has already taken steps to ensure his restaurant can afford the added expense.
The co-owner of Kaboom Chicken in Toronto’s Leslieville neighbourhood has raised menu prices in anticipation of the wage hike. He and his business partner also plan to reduce their staff’s hours in the new year and take on more of the work themselves in order to save money.
New Year’s Day marks the first of two scheduled hikes, with the second to take place on Jan. 1, 2019, when the minimum wage will go up to $15. After that, it will be adjusted to keep pace with inflation.
The Ontario government says the change will bring greater purchasing power for working families and a stronger economy overall, but many small business owners across the province are wondering how they will maintain profits in the face of increasing payroll costs.