Minimum Wage Laws: More Losses at Red Robin

Raising minimum wage means job losses

Image Credits: Mike Mozart, Flickr.

The Red Robin chain of 570 restaurants has decided to eliminate busboys due to rising labor costs.

Its business is mostly in western states several of which have raised the local minimum wage rate.

Previously they eliminated the job of “expediter” who prepared plates in the kitchen due to rising labor costs.

Clearly the labor force is losing jobs due to the increases in the minimum wage.

However, also notice that the cook and wait staff are going to take on new responsibilities in terms of preparing plates and cleaning tables. This means that customers are also losing in terms of time, quality of service, cleanliness, and the visual appeal of their meals.