Such hybrid restaurants are spreading to other high-cost cities, and they fit what analysts say is growing demand for more flexible dining options. But here, the extreme economics have rapidly made the model commonplace.
San Francisco’s tech riches have fed demand for restaurants — and some wealthy tech workers have decided they would also like to be partners in a restaurant, opening up more investment. But as those highly paid workers have also driven demand for scarce housing, the city has struggled to keep lower-wage workers afloat.
On July 1, the minimum wage in San Francisco will hit $15 an hour, following incremental raises from $10.74 in 2014. The city also requires employers with at least 20 workers to pay health care costs beyond the mandates of the Affordable Care Act, in addition to paid sick leave and parental leave.
Despite those benefits, many workers say they can’t afford to live here, or to stay in the industry. And partly as a result of those benefits, restaurateurs say they can’t afford the workers who remain. A dishwasher can now make $18 or $19 an hour. And because of California labor laws, even tipped workers like servers earn at least the full minimum wage, unlike their peers in most other states.
Enrico Moretti, an economist at the University of California, Berkeley, estimates that when housing prices rise by 10 percent, the price of local services, including restaurants , rises by about 6 percent. (The median home price in San Francisco has doubled since 2012.)
So burgers get more expensive as houses do. But even wealthy tech workers will pay only so much to eat one. “If we were to pay what we need to pay people to make a living in San Francisco, a $10 hamburger would be a $20 hamburger, and it wouldn’t make sense anymore,” said Anjan Mitra, who owns two high-end Indian restaurants in the city, both named Dosa. “Something has to give.”
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If Sarah Sanders had chosen to dine out closer to the office, chances are she would not have been asked to leave, as she was recently in Virginia. That's because one's political affiliation or ideology is a protected trait in the District of Columbia. But that's not so in most of the rest of the country, including at the Red Hen restaurant in Lexington, Virginia, which asked the White House press secretary to eat elsewhere Friday night.
Current events -- including Sanders' controversial experience and the refusal of a Colorado baker to make a cake for a same-sex wedding -- raise ethical and legal issues, many of which are handled differently, state by state.
The Sanders case is unusual if one views her as in the realm of mainstream politics, but less so if one categorizes the Trump administration as extremist, according to Brian Powell, a sociology professor at Indiana University at Bloomington. "We are in an unusual period of time, where restaurants and fast-food chains have become politicized, and where you shop does speak to politics," he told CBS MoneyWatch.
Federal law prohibits establishments serving the public to deny service to someone because of their race, color, religion or nationality, and a recent Supreme Court ruling ducked the broad issue of whether religious claims shield merchants from antidiscrimination laws. Other factors in which policies are viewed as discriminatory depends on location. Louisiana, for instance, in 2016 became to first state to add police officers to those protected by its hate-crime law.
"You can deny service for lots of reasons," said Powell, pointing to the common "no shoes, no shirt, no service" dress code many establishments impose. "You can't say, I'm not going to serve a woman, or someone older, and depending on what state you're in, you can't deny based on being a sexual minority."
Still, a large number of Americans believe a private business owner should be able to deny service to anyone, period, according to research Powell has authored. Putting medical and other necessary services aside, Americans responding to surveys overwhelmingly support the notion that a photographer, for instance, can deny offering services to a same-sex couple, even if the respondents themselves support same-sex marriage.
The mindset has little to do with religion and much to do with a free-market philosophy because a majority of Americans believe a business should be allowed to operate with little government intervention. "The overriding theme was businesspeople in the U.S. have the right to deny service. And, in turn, people have the right not to fraternize those businesses," Powell said.
However, those sentiments didn't hold when it came to big corporations. The public is opposed to letting large companies run unencumbered.
Of more than 2,000 people surveyed late last year, 61 percent said a self-employed photographer could deny service to a same-sex or interracial couple, but only 31 percent said a corporation could do the same.
"The American population doesn't buy the idea that a corporation is similar to an individual business, let alone an individual," said Powell, referring to the Supreme Court's 2014 Hobby Lobby decision. That ruling said closely held corporations hold the same rights as individuals in denying workers insurance coverage for contraception because of the business owners' religious views.
The National Restaurant Association distanced itself from the controversy that Sanders' encounter at the Red Hen sparked. "We welcome all guests," a spokesperson for the industry lobbying group said in an email, "regardless of their background or political beliefs."
Today Eater heads to Phoenix, Arizona, to call out 11 newish restaurants on the front lines of a Southwestern culinary explosion. We turned to local critic Patricia Escarcega to share her picks for the city’s buzziest openings of the past 12 months or so. “It’s been a busy year for the Phoenix food and drink scene, with an almost record-breaking number of new restaurants opening this past spring alone,” says Escarcega.
Among her picks, a lively barbecue spot (Starlite BBQ and Whiskey Bar), a new Thai street food favorite (Glai Baan), and a collaboration between pizza legend Chris Bianco and the team behind Phoenix’s beloved Tacos Chiwas (Roland’s Cafe Market Bar).
Without further ado, here now is the Eater Heatmap to Phoenix:
Note: Restaurants on this map are listed geographically.
