Do minimum wage hikes get rid of bad restaurants?

We study the impact of the minimum wage on firm exit in the restaurant industry, exploiting recent changes in the minimum wage at the city level. We find that the impact of the minimum wage depends on whether a restaurant was already close to the margin of exit. Restaurants with lower ratings are closer to the margin of exit on average, and are disproportionately driven out of business by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 10 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating on Yelp), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale). We expand the analysis to look at prices using data from delivery orders, and find that lower rated restaurants also increase prices in response to minimum wage increases. Our analysis also highlights how digital data can be used to shed new light on labor policy and the economy.

That is from a new NBER working paper by Dara Lee Luca and Michael Luca. Obviously this will not be good for jobs, yet part of me believes that creative destruction in the restaurant sector is undersupplied…

Originally posted on Marginal Revolution – click to see comments and suggestions.

 


A Price Is a Signal Wrapped Up in an Incentive

 

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Don Pollo

Don Pollo, web site, 146 Maple Ave., Vienna, VA, 571-529-6537, branches also in Potomac, Germantown, Rockville, and other locales. (Metro Trip Planner – opens in new window) [Google | TripAdvisor | Ylp]

One of the very best Peruvian restaurants around, though it masquerades as mainly a chicken place. The rice dishes here are the real winner, for instance the chaufa is the best in the region. One of the two or three best lomo saltados around. The ceviche is good, but avoid the “spicy sauce,” it is much better plain. Great location, never too crowded, so definitely recommended and while it feels a bit corporate it still has a casual vibe.

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Choong Man Chicken

Choong Man Chicken, web site, 9528 Lee Highway, Fairfax, VA, 703-772-0072 – also in Centreville and Annandale (Metro Trip Planner – opens in new window) [Google | WaPo | Washingtonian | TripAdvisor | Ylp]

An order of magnitude better than all the other Korean fried chicken places around. This is actually artisanal food and an order takes a full twenty minutes, as it should. The sauce is unique, rather than corporate, and it even has smoky tinges. Reminds me of the little, family-run places in Seoul. Definitely recommended, and don’t go too late because at some point the parking lot becomes dysfunctional (because of the laundromat, not because of the restaurant).

 


Choong Man (Korean Fried) Chicken

 

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Timber Pizza Co.

Timber Pizza Co., web site, 809 Upshur St. NW, Washington, DC, closed weekday lunch, opens at 5, but open 8-1 for breakfast on weekends, no reservations. (Metro Trip Planner – opens in new window) [Google | WaPo | Washingtonian | TripAdvisor | Michelin | City Paper | Ylp]

Mostly Neapolitan in approach, they also serve empanadas. I’ve had luck being served there during peak hours, though usually there is a modest wait to get your order in and crowded communal tables await you. Nonetheless one of the best pizzas around and a visit will not be regretted.

 

Timber Pizza // Washington, D.C.

 

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Mama Chang

Mama Chang, web site, 3251 Old Lee Hwy, Fairfax, VA, 703-268-5556. So far they are open for lunch only Friday through Sunday, and reservations for large parties only. (Metro Trip Planner – opens in new window) [Google | Washingtonian | TripAdvisor | Ylp | Restaurantji]

Update September 3, 2024:
Henan and Hubei food, with some Sichuan touches, might this be the best Peter Chang restaurant ever? I recommend the dried fried cauliflower, the beef jerky with cilantro, chicken chow mein, the farmer’s special under the main dishes, the latter one here also being healthy. Pickled chili flounder fish most of all? Green beans. Farmer’s chili pork? But there are so many other wonderful items, including the seasonal specials, which change regularly. Right now this is one of the very best meals around, and don’t forget the meatballs! Go!

– – –

Henan food, with some Sichuan touches, might this be the best Peter Chang restaurant ever? So far I’ve tried only about ten of the dishes. I recommend the fried chicken with red peppers, dried fried cauliflower, tofu with bean sprouts small dish, and the beef jerky with cilantro. I’m not saying those are the best, simply the best I’ve had so far, and at some point I may do a longer review. But those four dishes, taken alone, are right now the best meal in this whole area, at any price. Go!

 


Peacock carved from pumpkin by Peter Chang

 

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Ghent travel notes

Ghent is one of the loveliest small- to mid-sized cities in Europe, perhaps lucky to have never received UNESCO World Heritage status, unlike Bruges. Ghent was one of the earliest seats of the continental Industrial Revolution, through textiles, and the city core has splendid architecture from late medieval times up through the early 20th century. It is what Amsterdam should be, but no longer is.

The center is full of interesting, quirky small shops, along the lines of the cliche you do not expect to actually find. Only rarely are restaurant menus offered in English. Most of the tourists in the hotel seemed to be Chinese.

Walk around, don’t miss Graffiti Street, and the Ensors and the Roualt in the Fine Arts museum complement the more famous items there. The Industrie Museum has numerous textile machines from the 18th century onwards; I found it striking how different the 1770 machine was from the 1730 vintage, but how little by 1950 the machines had advanced .

For dining I recommend the Surinamese restaurant Faja Lobi and the Syrian Layali Habab, the mainstream Belgian places seem to be good but no better than good unless you pay a lot of money.

Most of all, you should walk around and ponder why we seem unable (or is it unwilling?) to build such compelling cities these days.

Originally posted on Marginal Revolution – click to see comments and suggestions.

 


Going Back To Medieval Times in Ghent, Belgium

 

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Yu Noodles Café

Yu Noodles Café, web site, 9 Dawson Ave., Rockville, MD, 301-978-7693 (Metro Trip Planner – opens in new window) [Google | Don Rockwell | Washingtonian | TripAdvisor | Ylp]

Small menu, cozy, mom and pop, mostly in the Sichuan/Chongqing direction. I prefer the noodles over the dumplings here, most of all the Yibin noodles with ginger and spice. But actually my favorite dish is the simple (and cheap) ground pork over rice. This is not a full service Chinese restaurant, but definitely worth having in the repertoire. The vegetables are quite good, too, make sure you get the spicy cucumber and a few of the other sides.

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Ghent bleg

What to do and where to eat? I thank you all in advance for your wisdom and counsel.

Originally posted on Marginal Revolution – click to see comments and suggestions.

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Troika Gastronom

Troika Gastronom, web site, 169 Hillwood Ave., Hillwood Plaza, Falls Church, VA, 703-241-3777, opens early in the morning as it is attached to a Russian supermarket. (Metro Trip Planner – opens in new window) [Google | WaPo | TripAdvisor | Don Rockwell | Ylp]

 


TROIKA GASTRANOM & RESTAURANT INTERVIEW

 

I have to say I don’t really like Russian food. This place will not convert the unconvinced, but still it is above average in its category. Best perhaps is the stuffed cabbage, and the meat dumplings are decent. It is run by Moldovans, and you are served by an Azerbaijani, and so it is not quite 100% Russian either. To its advantage! They even have a bunch of those weird, terrible salads with mayonnaise.

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Toli Moli Burmese Bodega

Toli Moli Burmese Bodega, web site, 1309 5th St NE, Union Market, Washington, DC, phone not given, often they close by eight. (Metro Trip Planner – opens in new window) [Google | WaPo | Washingtonian | Ylp]

Mostly a southeast Asian grocery, there is also a counter window where you can order a limited number of dishes. The mushrooms in coconut curry and noodles are outstanding, one of DC’s best Asian dishes, and by the way not really about the mushrooms. The catfish curry is strong. Some of the dishes seem to be available on an opportunistic basis. Maybe this is the best place in Union Market right now? Not a full service restaurant, but if you are reading this guide probably you should try this place.

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