The Michigan Restaurant & Lodging Association (MRLA) today released new polling data that reveals voters overwhelmingly support immediate legislative intervention to save the tip credit, with nearly 80 percent demanding action to prevent widespread restaurant closures and devastating job losses.
The tip credit allows restaurants to pay a reduced hourly wage to employees who make the majority of their income through tips.
The data comes as the industry races against time, with thousands of local restaurants at risk of permanent closure, according to MRLA.
A polling survey conducted by Marketing Resource Group from Oct. 7-10, 2024, reveals:
- 79 percent want the legislature to intervene to save independent restaurants.
- 76 percent support legislative action to protect restaurant workers’ jobs.
- 56 percent would reduce their restaurant dining if menu prices increase as a result of losing the tip credit.
“Michiganders possess an abundance of common sense and they expect their elected officials — Democrats and Republicans alike — to exercise their own common sense when a crisis can be avoided,” says Justin Winslow, president and CEO of the MRLA.
“The Michigan legislature can honor the will of their constituents and save 60,000 jobs and 1,000 independent restaurants with one simple vote in the coming weeks. We trust that they will before it is too late.”
Recent MRLA industry research paints a dire picture of what’s at stake if action isn’t taken soon:
- Menu price increases averaging 25 percent at 94 percent of restaurants.
- Up to 60,000 Michigan jobs eliminated.
- Permanent closure of one in five full-service restaurants.
- Two-thirds of restaurants forced to lay off employees.
The MRG survey, which sampled 605 Michigan voters and carries a margin of error of +/- 4.0 percent, shows voters overwhelmingly oppose these devastating outcomes and demand immediate legislative action.
“The future of Michigan’s restaurant industry, and the stability of Michigan’s overall economy hangs in the balance,” Winslow adds. “The Michigan legislature is in a position to implement a reasonable solution, but we need Democrats and Republicans to listen to the people of our state and quickly work together in common cause.
“The alternative is a pandemic-level of restaurant closure and job loss, which will decimate Michigan’s second largest private employer, wreaking havoc on Michigan’s overall economy. The MRLA has reserved a place at the table for elected leaders of both parties to come together to get this done quickly. Let’s break bread, save jobs, and preserve livelihoods together.”
Founded in 1921, today the MRLA represents more than 5,500 Michigan foodservice and lodging establishments. The industry employs more than 450,000 people and creates nearly $44.6 billion in annual sales.
For more information, visit mrla.org and detroitrla.org.
 today released new polling data that reveals voters overwhelmingly support immediate legislative intervention to save the tip credit, with nearly 80 percent demanding action to prevent widespread restaurant closures and devastating job losses.){kind=link}