- Moderator
- #1
Red Robin is eliminating bussers at 570 of its locations due to states' hikes in the minimum wage.
"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.
"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 ...
"While we may not like the idea of someone trying to live on $5 or even $7 an hour, we can likely all agree that earning a small wage is better than earning nothing at all due to unemployment. It’s easy to vilify restaurants and other companies when they respond to higher costs with layoffs. But it’s important to place the blame where it belongs. In this case, it’s bad policy—not incompetence, not corporate greed—that’s causing people to lose their jobs."
Red Robin is Cutting 570 Jobs. Can You Guess Why?