Popular American restaurant chain issues massive layoffs due to min wage hike; bigger changes coming

Elections have consequences, and so do mandatory minimum wage hikes.

A popular restaurant chain is feeling the pinch of minimum wage increases that have been mandated in certain states.

Protesters carrying signs and chanting slogans march during a protest in downtown Los Angeles on Tuesday, Nov. 29, 2016. A few dozen protesters blocked a downtown Los Angeles intersection as part of a national wave of demonstrations in support of higher wages and workers’ rights. (AP Photo/Richard Vogel)

Red Robin locations across the country will be issuing a massive layoff of busboys to recoup loses it’s taken under the stifling law that ignores basic free market principles.

The demand for a national minimum wage of $15/hour has become a rallying cry for liberal leftists who don’t understand the basic principles of supply and demand. Red Robin claims it’s been suffering from negative foot traffic, according to Fox 5, and the wage hike mandates could be disastrous for the company if substantial change isn’t implemented.

The burger chain expects to save whopping $8 million by eliminating busboys from 570 locations, Fox reported.

Red Robin’s Chief Financial Officer Guy Constant said the change is needed “to address the labor increases we’ve seen.”

Red Robin burger joint. YouTube screengrab.

The restaurants are located mostly in the West where many states have enforced the wage hikes at a faster pace than the rest of the country, Fox reported. Red Robin pulled a similar move in the past, and saved nearly $10 million last year by eliminating restaurant “expediters” who plate the food.

You can be sure, the tough jobs of servers and cooks will become that much more demanding with the lack of help to clean and plate food.

But relief might be in the future, just not in the way the “Fight for $15” crowd probably expected.

Raise minimum wage, wage increase, protesters
Wage hike protests have taken place across America. Image: Shutterstock

The food chain plans to start experimenting with self-serve and delivery options within the next two years, according to Fox.

There was, however, a ray of light as a company spokesperson told Fox 5 the chain has recently seen much-needed signs of growth for the first time in three years.

The booming Trump economy that has sent black unemployment levels to record lows wasn’t mentioned in the Fox 5 article, but one can assume, it’s playing role in the restaurant’s recovery.

 

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