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Yeah I always hear people say that "if they can't afford to pay their workers"
Most people don't realize the economics of the restaurant business .
It's a pretty low profit margin business by nature .
It's going to be bad for the small mom and pops but McDonald's will probably do well since they already have the technology and resources to automate .
It's a shame people don't realize how bad this really is for small business. Or they simply don't care .
I just looked it up..Red Robin's profit margin is 0.94%.
You bet they can't afford that min wage hike with all their current employees.
How many states actually have $15/hr min wage, and how many of those 570 stores are in those states?
Sounds to me like another deflection of the fact that they are simply cutting costs (good business) and saving money to pay shareholders and execs.
Before we blame this on minimum wage, I'd like to see some evidence, other than a quote from a CEO who may have other motives and drivers influencing his decision.
(Note I did not call it a good or bad decision, as that is subjective, just questioning the explanation.)
No state has a $15 minimum wage. The highest state minimum wage is Washington at $11.50. Some localities have $15 minimum wages, e.g. Mountain View and Sunnyvale, CA; Seattle for businesses of 501+ employees. https://www.laborlawcenter.com/state...um-wage-rates/
I've never been in one of the restaurant, but if they got rid of food expediters last year and busboys this year, then it would seem like the service would get worse, which will result in a profit loss for the chain as fewer people eat there. If they cannot afford to pay their employees a decent living wage, maybe they should find another line of services.
I thought the whole point of the business tax cuts was for corporate profits to trickle down to wages. Are restaurants exempt from that theory?
I've never been in one of the restaurant, but if they got rid of food expediters last year and busboys this year, then it would seem like the service would get worse, which will result in a profit loss for the chain as fewer people eat there. If they cannot afford to pay their employees a decent living wage, maybe they should find another line of services.
I thought the whole point of the business tax cuts was for corporate profits to trickle down to wages. Are restaurants exempt from that theory?
Apparently, so.
But everyone else is getting a big raise. I read it on this forum all the time.
I thought only 18 states were getting minimum wage increases in 2018? Correct me if I'm wrong...
But if only 18 states are, it is highly unlikely that is the reason for RR ditching bus boys in all of their restaurants.
I haven't been to an RR in a while, but last time we did, they were just experimenting with the table top kiosks to pay, order and play games on. I suspected even then, that their role was to eventually cut back on serving staff.
My guess is that introducing and perfecting that technology has played more into RRs decision to eliminate Bus Boys, than minimum wage increases.
I thought only 18 states were getting minimum wage increases in 2018? Correct me if I'm wrong...
But if only 18 states are, it is highly unlikely that is the reason for RR ditching bus boys in all of their restaurants.
I haven't been to an RR in a while, but last time we did, they were just experimenting with the table top kiosks to pay, order and play games on. I suspected even then, that their role was to eventually cut back on serving staff.
My guess is that introducing and perfecting that technology has played more into RRs decision to eliminate Bus Boys, than minimum wage increases.
Well the rising min wage isn't helping them. They had a dismal 2017 with revenue falling in the double digits. Their profit margin fell to 0.94%.
Well the rising min wage isn't helping them. They had a dismal 2017 with revenue falling in the double digits. Their profit margin fell to 0.94%.
Lots fast casual burger concepts now too so I'm sure that's cutting into their business .
I've been to Red Robin several times but when other people want to go.
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