mwdegutis Loc: Illinois

Hank Berrien ~ January 9, 2018
On Monday, the national restaurant chain Red Robin announced it would eliminate busboys at all of its 570 restaurants, as the company expects it will save $8 million in 2018 by doing so. Red Robin’s chief financial officer Guy Constant told attendees at the ICR retail conference, “We need to do that to address the labor increases we’ve seen.”

Michael Saltsman, director of the Employment Policies Institute (EPI), told FOX Business, “I read that as minimum wage. Somebody like Red Robin, which has a lot of exposure in western states – where the minimum wage is rising faster – … this is sort of a burger and beer chain. If they can’t pass those increases off in higher prices … they have to find a way to do more with less.”

851Franchise.com editor-in-chief Nick Powills added, “From a business standpoint, (Red Robin made a) very smart move. From an employee standpoint, you just cut out $8 million worth of labor. The interesting thing about the minimum wage hike is that those that made the decisions to do it, did it on behalf of the employee … when intentions are good, and you can’t appease everybody, someone is going to eventually be on the short (end of the) stick.”

The Colorado-based chain, whose outlets are found primarily in western states, already eliminated expediters, who take the food from the cooks and place it on plates for the servers; that saved the company almost $10 million last year.

Saltsman added, “I think the loss, as the minimum wage goes up … (is the) hollowing out of entry-level opportunities,”

As FOX Business reported, “Earlier this year, a study conducted by EPI, which analyzed employment trends from 1990 through 2017, found that each 10% increase in the minimum wage in California has resulted in a corresponding 2% decline in employment for affected employees. The impact was larger, 5%, for lower-paid workers."

mongo Loc: TEXAS

I think they did the busboys a favor. Now they can go seek employment
with a restaurant that serves good, affordable food and make more money.

SEMPER FI

PoppaGringo Loc: Muslim City, Mexifornia, B.R.

The other restaurants aren't hiring due to higher minimum wage increases.

DJRich Loc: Western Pa

Too bad the lousy management at red robin is not smart enough to take advantage of the trump economy, and the millions of dollars they save with the new corporate tax cut.

Making employees pay for their failure

goofball Loc: timbucktoo

I never heard of red Robins restaurant! Hell I started working as a busboy back in the days quit, and got better jobs! That's the way it works in restaurant business

Radiance3

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That $15/hour minimum wage started in Seattle, by that liberal-democrat council member. I think she is so stupid and has a an ugly big mouth. Now the small business owners are moving out of Seattle, because they can't continue operation on a losing proposition in Seattle, one of the most liberal cities in the US.

mwdegutis Loc: Illinois

Another bright is idea from our "progressive " friends in Seattle...

http://www.texarkanagazette.com/news/opinion/editorials/story/2018/jan/09/seattle-sodas-new-sugary-drink-tax-sends-prices-through-roof/707822/

Radiance3

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But Seattle is the most liberal city in the US, who now allows Marijuana drugs in the market to be consumed by all liberals and drug addicts. The kids will become addicted once they are used to smoking those drugs. Then these liberals/democrats multiply and become DRUG ADDICTS AND SOCIAL PROBLEMS. Then the city will raise taxes for their medical care on those drug addicts.

roy

Yes what a great idea,the people that actchully work there can afford to eat there.

teabag09

The same thing is happening with city and local governments. More full time employee are not being hired in favor of 28 hour employees to cut cost in health insurance and retirement benefits. Of course this puts a strain on the full time employees who remain because the part-timers don't have the same appreciation for the position and normally don't stay too long. Welcome to Utopia! Mike

goofball Loc: timbucktoo

Boy, have you got that right!