Chicago City Wire

The Chicago Contrarian has reported that 5,200 jobs have been lost and 100 restaurants have closed following the elimination of subminimum wages. The publication has called on Mayor Brandon Johnson to repeal the One Fair Wage ordinance. This announcement was made on X.

According to the Chicago Contrarian, the One Fair Wage ordinance was enacted in Chicago to phase out the subminimum wage for tipped workers. Supporters argue that the law would increase pay equity for hospitality staff. However, many restaurant owners have reportedly struggled with higher labor costs, leading to increased menu prices, reduced staffing, and closures of long-standing establishments. These policy changes have sparked debate among city officials, hospitality groups, and labor advocates over balancing fair wages with economic sustainability for small businesses.

The Contrarian states that within one year of eliminating the subminimum wage, Chicago has seen more than 5,200 jobs lost and 100 restaurant closures. The outlet attributes these figures to local industry data and feedback from business owners who say increased payroll expenses under the ordinance have made it difficult to remain financially viable. According to the publication, small and independently owned restaurants have been disproportionately impacted compared to large chains.

The article outlines options available to Mayor Johnson, such as fully repealing the One Fair Wage ordinance, modifying its terms for flexibility for restaurants, or offering targeted financial relief. The publication emphasizes that prompt action is necessary to prevent further closures and layoffs in Chicago’s restaurant sector. Several business groups, including the Illinois Restaurant Association, have voiced support for revisiting or amending the policy.

Chicago Contrarian is an independent digital news and commentary platform based in Chicago focusing on local policy, city government, and urban affairs. It regularly features investigative reporting, opinion pieces, and in-depth analysis on issues affecting residents and business owners. According to its official website, Chicago Contrarian aims to provide alternative perspectives on key urban policy debates and promote civic engagement.