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Friday, January 12, 2018

Red Robin - Eliminates Bussers due to Min. Wage Hike

At the beginning of January, minimum wage increases took effect in 18 states and 20 citiesacross the nation, and some industries are struggling to keep pace with rising labor costs.

Late Monday, casual dining chain Red Robin Gourmet Burgers (RRGB) announced that it would eliminate bus boys at 570 restaurant locations, a move that is expected to save the company an estimated $8 million over the course of the coming year. The company’s chief financial officer said the decision was made in order to “address the labor increases we’ve seen.”

“I read that as minimum wage,” Michael Saltsman, director of the Employment Policies Institute (EPI), told FOX Business. “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.”



Anonymous said...

Maybe the stock holders could take a pay cut. After all corporate taxes are down to 21per cent from 30 something. Always the middle class pays.

Anonymous said...

Primo example of cause and effect Democruts. Force a mandatory min wage increase and more people go without jobs! Its called business 101 in school...but then again most of you haven't been to school in 50 years.

Which brings up the need for TERM LIMITS!!!!!!!!!!!!!!!!!!!!!!!

Anonymous said...

If you do the math... this breaks down: 8 million per year for 570 stores. AT the current us minimum wage that is ONE bus boy per store per day working 5.3 hours at $7.25 an hour.

Can it be that all these stores have only ONE busser that works only 5.3 hours a day?

The numbers seem off.

I'd wager a bet that bringing the minimum wage up will hurt executive pay, and hurt pay outs to investors... but these people will stay rich anyway. Sure they'll not be happy about it, but they'll still not want or need for anything.

The extra money to employees will impact their lives DRAMATICALLY and help to stimulate local economy.

It's just outright greed that fuels this. The wealth gap gets wider and wider. At some point, we have to say enough is enough.

Anonymous said...

2:47 so what's your answer more government involvement?

Anonymous said...

2:22 hit the nail on the head. As far back as 1931 economists have subscribed to the quote referencing the inability to legislate the poor out of poverty. The politicians are trying to raise wages for unskilled laborers beyond what they pay the defenders of our country - the military. They continue to legislate significant increases in unemployment and increase the profits of the designers and manufacturers of robotic equipment while the school systems keep dumbing down the emerging employees, making them even less qualified to find work.

Anonymous said...

I had highly skilled customer facing people dedicated to their jobs that only made what min wage is today. The business owners we worked for suppressed wages for years. This was within the last 5 years.
Maybe the gov can figure out someday that no jobs means no tax money to waste. WHOOPS!