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“The labor continues to be a bugaboo with restaurant business,
as far as the increase in minimum wage year after year,” Helms
said.
Food and beverage costs have also risen dramatically. For Helms’
remaining restaurants in Illinois, one labor issue is especially
troubling.
“They’re talking about doing away with the waiters’ tip credit,
which right now is a big problem going on in the future for the
state of Illinois,” Helms said.
Legislation proposed in Illinois would mandate minimum wage
instead of a subminimum for tipped workers. The National
Restaurant Association issued a statement in response, saying
the proposal would lead to job cuts.
For Helms and his workers at Alexander’s Steakhouse in
Springfield, there was a lot of emotion as they said farewell.
“I was the opening manager at this location 40 years ago, so
it’s a bittersweet situation for me as well as for some of our
long-term employees,” Helms said.
Alexander’s lease expired last week. Helms said the main issue
for the steakhouse was not rent, but rising costs.
“Food costs are up dramatically over the past three years. Our
liquor costs continue to go up. Our beverage costs like Pepsi
keeps going up,” Helms said.
Alexander’s restaurants in Peoria and Normal remain open, he
said. The national chain Outback announced the closing of more
than 40 steakhouses, including one in Mount Prospect, Illinois.
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