Red Robin eliminates all busboys because of minimum wage hike

A mark of irrationality is the refusal to conform one’s belief and behavior according to compelling evidence.

I’m reminded of my faux-socialist friend erstwhile Stephanie’s immortal words, uttered in a fit of frustration when I proffered evidence contrary to her stance:

“I’ve made up my mind! Don’t confuse me with facts!”

Democrats champion mandatory minimum-wage hikes in the name of “social justice” and the well being of minimum-wage workers, against the market forces of supply and demand. In so doing, they ignore that pesky thing — empirical evidence that minimum-wage hikes actually hurt minimum-wage workers because employers inevitably resort to cost-cutting measures by firing those same minimum-wage workers.

The latest example is the casual-dining Red Robin chain restaurants.

The New York Post reports that as minimum wage hikes hit across the country this year, restaurant busboys, hoping for a bigger paycheck, are instead losing their jobs as chains look to cut costs.

One chain axing jobs is Colorado-based Red Robin, located mostly in Western states where the minimum wage has risen more quickly.

On Jan. 8, 2018, Red Robin announced it hopes to save about $8 million this year by eliminating busboys at each of its 570 restaurants. Citing labor cost (i.e., minimal wage) increases, Red Robin’s chief financial officer Guy Constant told attendees at the ICR retail conference in New York, “We need to do that to address the labor increases we’ve seen.”

Remaining staff are expected to pick up the slack once the busboys are eliminated. Restaurant consultant John Gordon points out that while costs will definitely be pared, the problem with slashing busboy jobs is that it cuts into customer service.

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. I think the loss, as the minimum wage goes up … [is the] hollowing out of entry-level opportunities.”

851Franchise.com editor-in-chief Nick Powills observed:

“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.”

Last year, Red Robin already eliminated “expediters” — restaurant employees who take the food from the cooks and place it on plates for the servers — resulting in a cost savings of nearly $10 million.

According to the Daily Wire, a study conducted by EPI, analyzing 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.”

See also:

~Eowyn

54 responses to “Red Robin eliminates all busboys because of minimum wage hike

  1. Since when do any restaurants pay decent wages to bus boys? Waiters, waitresses and busboys generally are paid below minimum wage and receive most of their pay as tips. Waiters/waitresses share their tips with bus boys.

    Liked by 4 people

  2. Some people have not made it anywhere near Economics 99, let alone 101. Minimum wages set too high will increase the prices of meals and loss of customers, loss of restaurants, and no employment, or the use of robots. The problem is going to get much greater than this because robots don’t eat and don’t have much in the way of basic requirements for existence that human beings have, so where will this go? Transhumanism, then a world of soulless machines? Stay tuned! Wait, don’t bother, none of us will be here.

    Liked by 4 people

  3. Thanks, Democrats!!

    Liked by 4 people

  4. I argue that the politicians intentions were not good as they reacted with a feel-good policy that wasn’t completely analyzed. Shocker, not.

    Liked by 3 people

    • DCG . . . . I think you have hit on one of the MOST IMPORTANT points out there regarding this “minimum wage debacle” . . . that is all these people in city, county, and state government let their ” Emotional Feelings” get in the way of either common sense, or an in-depth look at the actual numbers regarding minimum wage earners. They wish to be “all things to all people,” so that everyone can have a chicken in a pot, a car in their garage, and everything else so that they will know they have arrived on easy street. The reality is that those who have voted to enact these hikes in minimum wage, are not the very people who benefit (I should say suffer from the implementation) of them. it’s all smoke and mirrors! It’s all for show, so that the next time those on the vulnerable end . . . will definitely be expected to vote once again to return these do-gooders to office, because of all the good works the politicians have done on behalf of the entry level workers. Those doing the enacting of such legislation, don’t live on minimum wages, so in the end . . . their hearts bleed (gallons, and gallons) for the suffering of the poor. Yet the suffering of the poor who have lost their jobs is directly attributable to the stupidity, and I might say avarice of politicians (all hoping to maintain in their place on the gravy train.)

      So many people of good conscience for told what would happen, yet the politicians have their heads buried so deeply in the sand–it’s a wonder they don’t die of asphyxiation. The only thing they are able to see, is that by enacting these measures will help them garner votes of these same people.

      Now let’s turn our attention to the remaining employees, in this instance at Red Robin . They will be told . . . “You need to step it up, you have to cover your normal duties plus the duties of those who are no longer employed here.” Personally, I can envision an increase in employee dis-satisfaction, increases in sick days taken, and a lowering of employee morale, due to employees being expected to work at 120% of their work capacity–day after day after day.

      The only winners in this whole mess are the knot-heads who implemented these wage increases, which froze out the expendable, those on the lowest rung of the employment latter. They are left feeling all warm and fuzzy inside; for all the good works and bounteous excellence of passed legislation that they have accomplished on behalf of the poor and down trodden. They remain blind and completely out of touch–never realizing or willing to admit that they are responsible for down-grading the lives of those who were harmed by their legislative actions.

      Liked by 2 people

      • Well the truth is they have to eat. If their employer won’t pay enough for that to happen, we will. If their employer fires them, we’ll pay even more.

        So we have to realize a few very basic things. There should be enough jobs that pay a living wage for every person in a given society. If there aren’t, some decisions have to be made.

        As a Christian, I can’t allow people to simply starve, go without clothing or shelter. As a culture we have to ensure this. If we don’t we can’t call ourselves Christian and we are not doing our Christian duty.

        The way we act as a society is through our government. We can act in other ways too, but government is the primary way we try to shape things to meet our responsibilities. If the political parasites are sending jobs overseas through their policies (at the request of their owners), we need to do something about that. We can make that behavior VERY unprofitable.

        We must remember that, like it or not, every action has a cost. There is no way to avoid it, it just lands in a different pocket. If the employer picks it up, we pay more for what we buy. If we pay through taxes and fees, we must ensure that people don’t simply refuse to work and get fat off our efforts.

        So if we say “Mr. Employer, you don’t have to pay so much”. Dig deep, because you’ll make up the difference elsewhere. So a decision must be made. Which is cheaper and more effective? It seems to me that people earning enough to buy what they need is better than having them earn less than they need and us giving them food stamps.

        Liked by 1 person

        • “It seems to me that people earning enough to buy what they need is better than having them earn less than they need and us giving them food stamps.”

          The question is: Who decides what “people earning enough” means? Government? But that’s the road to even bigger government, not limited government, which from your previous comments, you clearly do not support

          Like

  5. minimum wage-mini slaves

    Like

  6. I figured that would happen. I noticed that at Walmart….even though they have about 20 check-out stations,you’re lucky if 3 are open, most times they want you to go to the self-checkout, which I don’t mind if I only have a few items and you don’t mine waiting, because one is broken, one only takes cash, and one only takes cards.

    Liked by 3 people

  7. Business has a responsibility to society just like employees have a responsibility to their employers. Employees are not slaves. Everyone is entitled to a fair wage. If the business chooses to cut employees and ends up reducing service they should go out of business and make room for someone who understands that dynamic.

    I have owned a few businesses. I always paid my employees well. I took a certain amount for myself and shared any windfalls. When a business starts gaming labor laws and running scams on their employees the employees rightfully begin to hate their employers and everyone suffers.

    The respect that a business man gets is dependent on how he or she run their businesses. Profiting at the expense of employees is a bad deal, always.

    Liked by 2 people

    • lophatt . . . What an insightful view you have . . . “When a business starts gaming labor laws and running scams on their employees the employees rightfully begin to hate their employers and everyone suffers.” That in a nutshell says about all there is to say about employers stiffing those who labor for them. The employees suffer, those who patronize the business suffer, and eventually the employer will also suffer.

      It really is all in how an employer treats their employees. The saddest of all tales is when an owner/employer works along side their employees, and the margin allocated to wages is so slim, such as Mom & Pop restaurant businesses, that they just cannot abide with these grandiose ideas put forth by rabid liberals. In so many instances, the businesses go under. We saw a lot of that in Seattle, right after they instituted their increases in the minimum wage.

      Liked by 3 people

  8. Democrats JUST. DON’T. GET. IT: They have destroyed the sexual morality and moral fiber of America, and now they’re out to destroy every last job we’ve got left!
    But the Republicans just don’t get it, either: The decision to de-industrialize this Nation was made during the Eisenhower Administration. Beginning in 1961, we began to get rid of manufacturing: The electronics industry was the first to make the move out, over to Japan.
    But here is the Big Picture now: The decision to Cloward & Piven us to death has already been made. They will bankrupt every corporation they can get their hands on—and the corporations will gladly comply, because their CEO’s will already have their golden parachutes! A.I., Artificial Intelligence and robotics, will eliminate over two thirds of all the jobs. And everyone will get a government check.
    Then they will come for us and begin the Extinction Level Event they’ve already published in their books, journals and white papers.

    The answer IS NOT to get rid of “capitalism”—a derisive term coigned by Karl Marx himself to condemn any private enterprise his crew could not control. The answer is to get rid of the CRONY CAPITALISM perfected by the Presidents Bush and Clinton to establish their Big Club Death Star whereby they can money up (and escape to Paraguay, if need be!) The answer is to break the spine of this Crony Establishment. But that can only be done by hanging the banksters. But even that won’t get the results we really need, namely, TO ESTABLISH SOUND MONEY.
    What Red Robin and every other chain is up against—what we’re ALL up against—is not a minimum wage law. This is a distraction! We are up against AN ANTI-CHRIST SYSTEM, led by evil, wicked men who play Divide-and-Conquer for centuries while they gobble up the wealth, pollute our soil, air, water and even our own bodies with their EXTINCTION PROTOCOLS.
    Their Engine of Death has begun to build up some steam here. Ronald Reagan did nothing to stop it. Donald Trump can do nothing to stop it—but all he can do is to buy us some time. This is because the Devil himself is gearing up for his Final Battle.
    I believe this Final Battle WILL begin within the next 20 years. In a way, this Red Robin story informs us it’s already begun.

    Liked by 4 people

    • steven . . . . I could not agree more, we need . . . “TO ESTABLISH SOUND MONEY.” So few of our fellow Americans have the faintest idea what fractional banking is, or the degree to which The Federal Reserve (not Federal at all) embezzles from the ordinary American citizen right and left. I have little doubt, if they could, they would steel the gold out of our teeth.

      Liked by 2 people

      • Ha, ha, that’s good. Have you noticed the “Bitcoin” thing lately? Talk about a formula for disaster. It’s the ultimate fiat currency. No value at all, of any kind. What’s to worry…?

        Liked by 1 person

  9. I guess they can always offer better/higher quality food as well, not impressed with the bland slop they serve…

    Like

  10. Not trying to be rude, but it should have been rather obvious that the battle started before now. You most certainly didn’t need to hear about it because busboys are getting fired. 😛

    Liked by 1 person

    • That’s just the start-there are going to be a Generation of youths who get out of school but can’t get into the workforce,because the low-skill minimum wage jobs they would traditionally take while learning HOW to work will be occupied by low-skilled career burger-flippers who make as much as the assistant manager. So-where do they go? They sign up for Welfare and every give-away they can qualify for,or they fake their way into a Disability program,or,if they’re at all smart they’ll find a way to get into a Trade School-learn how to get into a BETTER paying profession. I think the Trade Schools MAY become the refuge of the new-to-employment workers.

      Liked by 2 people

      • In China the average factory worker makes about $200 a month for ten-hour days. You can bet that the Globalists see that as where they want everybody. Once they achieve that the “culling” will begin. After all, they only need so many yacht washers and caddies.

        So you will have the money/power brokers (better study your Hebrew), those that protect them (they will make $300/mo.), and the eaters.

        Trades are necessary, depending on what the overall society looks like. It is not necessary or even desirable for everybody to have a college degree. Once their goal is achieved everything we thought we knew about “economics” will show itself to be completely moot.

        If you’ve seen the film “THX 1138”, that’s what we have to look forward to. I doubt though, that there will be that much industry. We are dealing with Satan. We must stop expecting too much. If we don’t want to end up there we need to stop it NOW.

        Liked by 3 people

        • lophatt . . . . Bravo! There is no doubt about it, your synopsis of this problem is exactly right on the money! I certainly do agree . . . “We need to stop it NOW.”

          One ray of sunshine, at least that I see, is our current President. Chrysler announced it would be bringing their factory back from Mexico, and Apple says they are bringing home manufacturing–so that over the next five years, there will be an additional 20,000 jobs for Americans! I would say that is miraculous. Keep up the good work, President Trump!

          Liked by 4 people

  11. The whole minimum wage hike (actually the whole concept of minimum wage) does nothing to benefit anyone. Other prices rise accordingly, and those who had any ‘raises’ previously are now back at the bottom of the barrel. This is a Zionist freemason trick which they had meetings about….before 1901. Read the “Protocols of the Learned Elders of Zion”.

    Liked by 3 people

  12. OT: not sure where to post this.
    This is a very dangerous next few weeks for PDJT and his family. Just thought ppl might want to ask for protection from our Gaurdian Angles

    https://theconservativetreehouse.com/2018/01/18/president-trump-prepares-to-exit-nafta-corrupt-gope-fight-to-retain/

    Liked by 2 people

    • kjf . . . . since our POTUS has been declared of sound mind, I have little doubt that “the other side” would love to find another way of “taking him out.” I would not put any degree of devious, or criminal activity aimed at Trump, past them.

      Very interesting today on the news, Palestinian women ranking and raving about how evil the USA is because President Trump cut aid to whatever Palestinian agency administers charitable help to their needs. The first thing to flash in my mind . . . when we have to BORROW so much of the money we are sending to others–here and there and everywhere. What kind of insanity is that? Yes, it is wonderful to love thy neighbor .. . . but the rest of that quote goes . . . “as you would love yourself.” How much self love goes into raking up Trillions in debt so that we can show how much we love the down and out? For several decades the Democrats have dragged us into these lopsided deals where in each instance the United States ended up the looser. Yet, all the nations on this planet look to us to send them charity, even if we are dying from the crushing load of that debt. It is high time that our priorities are straightened out. Let the Palestinians cease to hate us for all the charity we have already given them. Let them look to Saudi Arabia, and so many other nations who have monies that could well be spent in “loving their neighbors.”

      In looking at the picture of the Palestinian woman who was so angry and irate, God forgive me, but I felt an instant dislike for her. Very few peoples in this world care if the USA is hemorrhaging from all the aid we spread around . . . it is like “death from a thousand cuts.”

      Liked by 2 people

  13. The goal of progressives was not to succeed here but to fail. They’ll tell the unemployed that the greedy capitalists have proven they are against you by letting you go rather than capitulate. We’re still here and we are on your side do keep voting for us. We are your only friend.

    Liked by 3 people

    • Well, what does “success” look like to a soulless parasite? I suppose it may look like “all the money I want and all the minor power I can wield”. So, their bankster bosses conjure up a plan and, as long as they stay on script, they’re golden.

      Part of The Plan is to dream up “warring factions” and other Hegelian rubbish and convince the masses through “Tell-Lie-Vision” that it’s all “real”. Any serious student of history could affirm that it has been this way through the Twentieth Century and into the Twenty-First.

      There is a manufactured “reality” that the eaters live in, and there is another that the Owners enjoy. The way that the Owners maintain their status is by manipulating The Plan and its attendant propaganda to keep the eaters warring with each other.

      If that isn’t going swimmingly they can introduce savages from Africa an the Middle East to ensure that chaos reigns supreme. I think that about does it.

      Like

  14. Artificial wage inflation results in lower employment, increased investment in technology to replace workers, or a business that is heading towards insolvency.

    Liked by 2 people

    • Well, somebody has to pay. Unless you’re a fan of genocide, these people exist. They must be fed, clothed and housed. If their employers won’t provide that, who will? Whoever ultimately provides it, pays the price.

      The issue is “where will the funds come from” is the deal. If the employer manages to buy enough politicians to get off Scott free, the eaters will pay. If this is a shared responsibility, why isn’t the cost a shared responsibility?

      We are already seeing Third World indicators. We have camps of indigents. There is no shortage of money, just a shortage of willingness to pay. I don’t buy the argument that because you’re a business you don’t have to contribute. I didn’t create them either but I think I’m stuck.

      Liked by 1 person

  15. Work is the curse of Adam. Robots have the potential to release mankind from this curse and restore Eden, but under Fabian Socialist (proletarian) conditioning the level of human intelligence has declined so drastically that it can’t contend with this opportunity.

    Liked by 1 person

  16. They are shooting themselves in the foot by eliminating good customer service. People have gotten less tolerant of poor service. The last thing people want to see is their servers bussing a table, picking up dirty plates and glasses, then carry your food out to you.

    Liked by 2 people

    • Glenn47 . . . . God Bless you for bringing this up . . . “The last thing people want to see if their servers bussing a table, picking up dirty plates and glasses, then carry your food out to you.” That is so right on! When I go out to eat and there is food left over, I will ask for a “doggie bag” but I never let them put the remainder of my food in the container–I always do it myself. I’ve seen far to many waiters/waitresses not only serving food, but cleaning up after other’s who have finished eating, and taking money at the till at the completion of a meal . . . . NO THANKS! You don’t see anyone washing their hands, and frankly that is a recipe for spreading some horrific germs. I’ve had any number of servers look at me like I was crazy, but just No Thanks, I will do it for myself. Things are probably germy enough as it is.

      With the increasing cost of eating out, I would agree businesses are “shooting themselves” in the foot by cutting down on the good customer service that you should be getting in exchange for the high dollar amounts of most meals. I think more and more I tend to shy away from eating out–it has gotten to expensive, and frankly the quality of many of the wait staff (lack of hygiene, surliness on their part, huge rings in their noses, or ears. just a lack of general good grooming, women with half of their heads shaved. That kind of stuff just turns my stomach, so I see little need to go out of my way to pay for these kinds of encounters.)

      Liked by 2 people

      • Auntie, you are very smart to be so cautious. With hepatitis raging around the country, we have to be prudent and with many from other countries working in the kitchens, even more so. Many have never practiced sanitary methods nor wash their hands after using the bathroom or between different tasks.,

        Liked by 1 person

  17. Youghn . . . . that is the great lie that is being told, in an attempt to get people to fall in line behind Socialism/Communism. How very unfortunate that the public schools have done such a great job at brain washing our young people in believing that this would be a better system of living than what we have today. You are a 100% correct, “They’ll tell the unemployed that the greedy capitalists have proven they are against you by letting you go rather than capitulate.” There is only one end game . . . “We’re still here and we are on your side DO KEEP VOTING FOR US,” and many there are that fall for this great lie.

    Liked by 3 people

  18. “It’s Trump’s fault don’t ‘cha know! He said he would increase job opps yet look at the companies slashing jobs!” (MSM version which does not include the reason!)

    Thanks for pointing out the obvious which I didn’t even think about, so I mean that seriously!

    The waitresses will now have to bus their own tables. That’s no fun. I remember those big smelly grey bus bins. At least they won’t have to share their tips with busboys anymore.

    I never heard of “expediters” who “put the food on plates,” so that struck me funny, lol. I don’t think there was such a position in the 1970s when I tried waitressing for a spell (not my favorite thing to do). As I recall, the COOKS put the food on the plates! 😀

    The 570+++ Red Robin busboys should grab their severance paycheck & dance their way out the front door singing this old catchy tune… as they embark on their next “career” > finding another job! So “get up sleepy head, get out of bed!”

    “When The Red Red Robin Comes Bob Bob Bobbin’ Along” – Bing Crosby’s version:

    (I liked Bing better than Dean Martin, Doris Day, Al Jolsen, & Louis Armstrong versions at youtube; there’s also a 1926 “Whispering Jack Smith” version with bird tweeting sounds but it’s very static’y/old record.)

    Liked by 1 person

  19. Everyone that complains about the minimum wage ought to try actually surviving or living on minimum wage. Between I am an independent- your team “Demoncrats or Republicans” illusion is just THAT! An illusion! Sure it’s a great wage for young adults LIVING AT HOME and paying no RENT!! And, those people NOT living at home QUALIFY for county benefits especially if they have 1 or more children to support. Question- is it boils down to requiring the employer to pay a LIVING WAGE not a minimum wage. That being stated these corporations have more than likely qualified for TIF(tax increment financing) where they pay little or no property taxes. The homeowners are LEFT TO HOLD THE BAG for both!! While the corporations hide their profits in the Cayman Islands and other offshore accounts to avoid paying their fairshare in taxes.

    Like

    • Who decides what a “living wage” is? You?

      Minimum wage jobs are unskilled, entry-level positions, and were never meant to be an individual’s livelihood, much less sustain an entire family. I had minimum-wage jobs (dishwasher, waitress, retail sales) when I was in junior college, then graduated to more skilled, secretarial jobs in my last 2 years of undergraduate education, before moving on to skilled (teaching assistant) in grad school. If you’re in a minimum wage job your entire life, there’s something very wrong with you.

      Liked by 1 person

      • My first couple of jobs paid $1.65/hr. I knew at the time that it wasn’t a “career”, it was to earn money during Summer vacation from High School. Before that I hawked sodas and hotdogs at a race track and delivered newspapers.

        In college I again had a minimum wage job in a convenience store that got robbed a lot. In addition I was playing musical gigs that paid a lot more. After being drafted and my stint in the Army I went back to college on the GI Bill. I again worked almost minimum wage jobs too and continued to play music for money.

        Eventually I landed “serious” career-type jobs and never looked back. I know that jobs that pay adequately to support a family are getting more scarce. A country’s first duty is to its citizens, not to improving a corporation’s profits at the expense of its citizenry. Companies that do business here should not be allowed to hire foreign unless they meet certain employment goals.

        Germany used to do that before the EU ruined them. We should stop giving tax breaks to corporations that farm out jobs or import labor. We need to take care of our own again. Those who do business here are supposed to be citizens too.

        Liked by 1 person

      • You’re missing my point. Most people do… You’re paying “under handedly” for a minimum wage. People that can’t make it -qualify for county assistance. That county assistance is part of your property taxes that the business that gets out of paying but you as a property owner is on the hook for. Believe me – I was under paid baby sitter at 25 cents an hour ! And, you knew you would not get called back if You did not clean up. Personally, I do not recommend working in the underpaid over worked nursing asst jobs either- you’re better off slinging hamburgers. Working as a nursing asst never made over 13 an hour for 30years plus work. Also, had taken a course at a tech college but- doctors write in “chicken scratch” attempt to decipher is horrible. What is a LIVING WAGE? Essentially it would depend on area costs. Meaning it costs more to live in some areas over others. As far as entry level jobs- 2 of my siblings went to college for printing. Both were doing good making over 20 an hour- then the economy tanked and there went the 20 an hour plus jobs in printing. There is NO POINT in arguing this- either the employer pays a living wage- or the county does if applicable and that employee qualifies. In the end the taxpayer makes up the difference. I didn’t design or make up the system -but this what happens.

        Like

    • How do you propose to define “living wage?”

      Does a “living wage” include your ability to own the latest iPhone? To have a large apartment where you don’t have to have room mates? To own a spacious home? To be able to eat out at least once a week? To be able to buy Starbuck’s whenever the mood strikes you? To not have to shop at Goodwill for clothes? To have a large flat screen tv?

      How do you propose to determine which companies (size, revenue, off shore holdings, etc.) must be required to pay a “living wage?”

      How do you propose to determine what is considered a “fair share” for companies to pay in taxes?

      How do you propose to determine a standard definition of “decent” living standards based upon individuals’ needs/wants, geography, skills/capabilities and initiative/drive?

      Liked by 1 person

  20. I’m going to have to disagree with this. Seattle has had the increase in minimum wage hikes way before California has. Also Red Robin was founded here in Seattle and I reached out to them after I read your post. I was informed that they are NOT eliminating any jobs due to minimum wage hikes. Please make sure you get you facts straight before posting such stuff.

    Like

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