New year, higher pay floors. Every staff hour counts more.
Wage rises hit dozens of US jurisdictions on New Year's Day. Operators who move routine tasks online protect both margins and their teams.
By the Xuru Technologies team · 2 January 2026
Key takeaways
- Minimum wages rose in 68 US cities, counties and states on 1 January 2026, with more increases later in the year, according to NELP.
- Restaurants and hotels feel it most because labour is their largest cost.
- The goal is not fewer people but less time spent on tasks guests can do themselves.
With no change to the federal minimum, states and cities keep setting their own pay floors. For hospitality, that means planning for higher costs every January.
What happened
The National Employment Law Project counted 68 jurisdictions raising minimum wages on 1 January, with 26 more later in 2026. Restaurant Dive listed the increases affecting restaurant operators.
What it means for operators
- Menu prices have limits. Guests are already value focused, so price rises alone will not cover it.
- Phone time is expensive. Every call about hours, menus or bookings costs paid staff time.
- Retention matters. Good staff are harder to replace than to keep. Remove the tedious work.
Ways to save staff hours
| Tool | Hours saved on |
|---|---|
| Online ordering on your own site | Taking phone orders and correcting mistakes. |
| Table and room booking | Answering availability calls. |
| AI assistant for FAQs | Allergens, parking, check-in and opening hours. |
| Automated reminders | Chasing no-shows and confirmations. |
Frequently asked questions
How many places raised minimum wage on 1 January 2026?NELP counted 68 cities, counties and states, with 26 more planning increases later in 2026.
NELP counted 68 cities, counties and states, with 26 more planning increases later in 2026.
Should restaurants raise prices to cover wages?Modest, well-explained increases can help, but combining them with efficiency gains protects guest loyalty better.
Modest, well-explained increases can help, but combining them with efficiency gains protects guest loyalty better.
Does automation mean cutting staff?Not necessarily. Most operators use it to move staff from phones and admin to serving guests.
Not necessarily. Most operators use it to move staff from phones and admin to serving guests.
Give your team their time back.
Ordering, booking and AI answers built into your own website, so staff can focus on guests.
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