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SF Bay Area Restaurants: Dinner, Disrupted, by the New York Times

Stashed in: San Francisco!, Freakonomics, Bay Area Housing, Food

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San Francisco Bay Area has a restaurant problem, it turns out: "I am all in favor of San Francisco’s $13 per hour minimum wage (which rises to $15 by 2018), plus mandatory paid sick leave, parental leave and employer health care contributions. But labor costs at restaurants are inching past 50 percent of total expenditures, an indicator of poor fiscal health. Commercial rents have also gone bananas. Add the ever-rising cost of frisée and pastured quail eggs and it’s no wonder that many restaurants are experimenting with that unique form of sadism known as “small plate sharing,” which amounts to offering a big group of hungry people something tiny to divvy up. Even nontrendy joints now ask $30 for a proper entree — a price point, according to Mr. Patterson, that encourages even affluent customers to discover the joys of home cooking."

It may just be too expensive to run a Bay Area restaurant now. 

Price floors create surpluses if they are higher than the market price.  Unf. in this case it could be labor surpluses.

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