To the surprise of no one with functioning brain cells.
Red Robin, a popular burger chain, will cut jobs at all 570 of its locations because, chief financial officer Guy Constant said, “We need ... to address the labor [cost] increases we’ve seen.”
To put it differently, Red Robin is cutting these jobs because of bad government policy: namely, hikes in the minimum wage. On January 1, some 18 states — from Maine to Hawaii — increased their minimum wage.
Founded in Seattle but headquartered in Colorado, Red Robin hopes to save some $8 million this year by eliminating bussers from their restaurants. (Bussers, or busboys, clear dirty dishes from tables, set tables, and otherwise assist the wait staff.) According to the New York Post, the company saved some $10 million last year after eliminating “expediters,” who plate food in the kitchen.
The Impact of an Increase in Wages
Despite what many people, including policymakers, would argue, this is an altogether painfully predictable response to increased labor costs. It’s basic economics. The “first law of demand” teaches us that when the price of a good or service increases, people will tend to buy fewer units. Conversely, when the price of a good or service decreases, people will tend to buy more. This idea is usually presented no later than chapter 3 in any econ 101 textbook.
Cost of employing workers increases, companies hire fewer workers and let them go.
Labor is no exception to this rule. If the cost of employing workers increases, we’d expect companies to hire fewer workers and even to let some go.
https://fee.org/articles/guess-why-hundreds-of-bus-boys-just-lost-their-jobs/
Hey but I bet those min. wage lawa made you feel all squishy inside ,huh?
LAFFRIOT
:lamobububububutbutbut ... The tax cuts were supposed to prevent this!!
:lamoI guess Red Robin isn't on the GOP mantra that the tax cut will increase wages and promote job growth.
The reality is that labor is almost always the most expensive cost. Driving that up does not help the small businesses or the big ones pay their employees.
I don't know Red Robin. I've seen them around, seen the odd commercial,but I don't believe I've ever visited one.
I'd be curious to see what their numbers were like before this change.
Clearly, they weren't great, or they wouldn't have felt the need to get rid of all their "expediters" before the wage hike (as mentioned in the OP's link.)
When I read the title of this thread, I thought this was going to be about that 80's sitcom...
:lamo
No, they werent. The tax cuts arent supposed to mitigate inefficiencies and foolish inflated minimum wage hikes. Please site the evidence of your claim that tax cuts were supposed to fix stupid leftist government policy.
No no....this is what happens when leftists insist on trying to turn unskilled and expendable labor positions into 'living wage' careers. Its what happens when you let eople that arent qualified to run a lemonade stand make business decisions for business owners and entrepreneurs. Oh...and hey...the idiots advocating for the minimum wage hike are also the same folls clamoring for the return to prominence of labor unions.
So...first question...why just Red Robin? Second question...are they then planning on reduced business and less service, or, were they inneficient prior to the cuts?
Real fact : Work doesn't do itself.
look at the positions cut
busboys....now the wait staff can bus their own tables....customers will waits a extra few minutes to get a clean place to sit
expediters....making sure all the food is hot, cooked correctly, and looks right on the plate....i guess the customers will let them know if this part becomes an issue also
they are cutting two jobs that are "nice" to have, but if managed correctly, can be done away with
but....i think the customer experience at most of their restaurants will suffer, because MOST are not managed correctly....
Why would a fast food place have expediters?
difference between this and fast food imo
chain restaurants are known for having expediters in kitchen for quality control
not all but most....but as personnel costs continue to rise, this is one of the places where restaurants will cut and hope that their sales wont decline....i disagree....to me other than chef, expediter is second most important person in entire place
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?