If you go back to the article, you'll note that the minimum wage in San Fran is already $12.25 as of May 2015.

 

The economy in the Bay Area has not collapsed.  In fact, it's advancing as hard as ever.  But that's not my point.

 

The pizza joint increased their minimum wage to $15.  If they'd started out at $12.25, a 20% increase is $2.45.

 

$12.25 + $2.45 = $14.70

 

So in reality, these guys increased their employees wages by 30 cents an hour and eliminated the tips, which in Berkley/Emeryville are near 20%.

 

The restaurant is learning the important lesson that most have when trying to eliminate tips - it's a hard sell to the American consumer.

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