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Restaurant owners tell Commerce Committee high wages, fees and regulations squeezing small operators
Summary
Representatives of restaurants and the Connecticut Restaurant Association urged lawmakers to slow minimum‑wage indexing, reinvest the 1% meals tax into tourism and workforce development, and address credit‑card swipe fees, energy costs and regulatory burdens that they say are shrinking margins and reducing entry‑level jobs.
Restaurant owners and trade group officials told the General Assembly Commerce Committee that rising labor costs, credit‑card and delivery fees, energy price pressure and expanding regulations are squeezing profit margins and shifting business models across the state.
Representative David Rutigliano, owner of SBC Restaurant Group, told the committee he has reduced staff and raised menu prices. “Given the financially slim profit margin, which now it stands about 3 to 5%, rising payroll costs force us to raise menu prices directly, fueling food service inflation,” he said.
Why it matters: Committee members heard that the restaurant and hospitality sector accounts for thousands of jobs and billions in sales in Connecticut; witnesses warned that continued cost escalation will favor larger chains and automation over independent, family‑run establishments.
The Connecticut Restaurant Association’s president and…
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