In this tight labor market, employers have to pay more to attract and keep workers.
Businesses also have to be more productive.
Cafe management braced for new competition a few months ago when a Mexican restaurant moved into the Woodbury strip mall that Keys calls home. Keys managers weren't worried about losing customers. They were concerned about losing workers. The Keys team, wearied by earlier wage increases, nonetheless responded by boosting rates for hostesses by 15 to 20 percent. At least they didn't have to raise prices.