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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%.
I wonder how much changing dining habits have affected this?
I know that other chains like Applebees, Chilis, Ruby Tuesday etc saw massive declines in profits back in 2016, and they suspected that changing dining habits were primarily to blame.
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.
True. Plus, a lot of metros have their own smaller chains or local burger joints with comparable or better quality products for around the same price as you would pay at a chain.
Who could have predicted something like this? Oh yes, everyone not a far left SJW more concerned with feeling good than actually DOING good.
Min wage jobs were always a temp way to step towards more permanent jobs.........now the LIBS jumped on it and think it will do wonders for all the unskilled out there......it will layoff all those who aren't unpacking and installing fast food robots who WILL work around the clock for less than $15. GENIUS.
Min wage jobs were always a temp way to step towards more permanent jobs.........now the LIBS jumped on it and think it will do wonders for all the unskilled out there......it will layoff all those who aren't unpacking and installing fast food robots who WILL work around the clock for less than $15. GENIUS.
Yeah ,exactly. Some don't think things all the way through.
If you listen to actual business owners they all say the same thing. They are going to cut back on labor or might even have to close up shop.
I think fast food robot will be a growing field.
It's also going to be normal to order your food on your phone before you get to the restaurant. You can already do this most places through Grubhub ,Yelp and other apps.
I know Wendy's was testing it out too when I went once a while back...along with the ordering kiosks.
Seems they are slowly trying to 'train ' their customers to expect they'll have to order from kiosks or mobile.
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.
Agreed.
Of course, what everyone is missing is that the tables will still have to be bussed so all that's really changing is the title of the person doing the bussing.
This is no different than the job responsibilities contractions that have taken place in many, many industries over the past twenty years.
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%.
Two things:
1) to what do analysts contribute their poor showing last year?
2) given that poor year, cutting jobs seems like a rather ham-fisted way to try to woo people back into their restaurants.
Granted, I've never eaten at RR but I sure as heck wouldn't be inclined to do so now.
Seems to me that this falls into the category of cutting off one's nose...
Kiosk ordering gives waitresses lots of time to clean tables.
Not the ones at the Olive Garden close to my house. Those kiosks only let you order certain things and you really can’t customize orders. Some customers are very picky and weird. I do like those kiosks when it’s time to pay though because I don’t have to wait. In that regard, the kiosks enhance the customer’s experience.
This restaurant close to my house has waits of up to 45 minutes for a table and it’s very high volume. They have to turn those tables quickly so they employ busboys although it seems everybody pitches in. They have VERY good service which is probably why people wait that long.
It all depends on the type of restaurant. There are some that don’t require bus personnel.
McDonalds are mostly mom and pops. Remember they are FRANCHISES. The franchisee is often a little guy, the franchisor (McDonalds Corp) is a real estate, and burger supply company for the most part.
True , still takes a substantial investment to even buy an McDonalds .
I'm guessing you have to have a net worth of at least $1 million , although I know most franchises offer financing but still .
I watched the movie The Founder about the history of McDonalds great movie .
It wasn't until Ray Kroc realized he needed to be in the real estate business that the businesss really took off .
The land /real estate stores were built on gave him leverage to take out loans and grow .
I think many small businesses that own their own real estate will likely decide to sell their property especially in places like L.A
It'll be more profitable for many of them than to continue running the business .
There was an article a while back about Carneys a hot dog / burger place in L.A that has been here forever . the owner basically said that too . The property value is worth a lot more than the business makes.
I could see a lot of retail and commercial being redeveloped into housing since there is such a demand and shortage .
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/
CA has signed $15 min wage law statewide but not In effect yet
In L.A it will be $15 in 2020 around corner .
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