Posted on 07/12/2019 2:36:48 PM PDT by Red Badger
The minimum wage was not the only factor Restaurants Unlimited blamed for their impending bankruptcy. The company also cited a pair of soft restaurant openings and a decline in casual dining.
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Restaurants Unlimited, a Seattle-based chain with restaurant locations in 47 US cities, announced on Sunday it was seeking Chapter 11 protection, citing “progressive” wage laws.
The company, which has operated since the Lyndon Johnson Administration, said rising labor costs—part of a national trend of government-mandated minimum increases—were part of its decision. One Factor of Bankruptcy
“Over the past three years, the company’s profitability has been significantly impacted by progressive wage laws along the Pacific coast that have increased the minimum wage,” Chief Restructuring Officer David Bagley said in court filings, The Seattle Times reports. "As a large employer in the Seattle metro market, for instance, the company was one of the first in the market to be forced to institute wage hikes."
The minimum wage was not the only factor Restaurants Unlimited blamed for their impending bankruptcy. The company also cited a pair of soft restaurant openings and a decline in casual dining.
The announcement, however, mirrors labor trends on the east and west coasts. BLS data show that New York City experienced its sharpest decline in restaurant jobs since 9/11 following its passage of a $15 minimum wage law. In California, a local newspaper recently detailed how an entire business district virtually disappeared following the city’s aggressive minimum wage push.
Restaurants Unlimited’s announcement came a day before the Congressional Budget Office released a report estimating that a House bill designed to raise the federal minimum wage to $15 an hour would cost 1.3 million jobs. Popular, But Economically Destructive
Polls show that minimum wage laws are popular with the American public, yet evidence suggests they adversely impact the most vulnerable in society and were originally designed to keep women and minorities out of labor markets.
Minimum wage laws are less popular with economists, who say they create a surplus of unskilled labor and can actually give employers an unfair bargaining advantage.
Oops.
Our nearby IHOP looks empty most of the time.
Maybe their crappy service has something to do
with it, though.
IHOP? You mean Obama kids Central?
A “minimum” of $15/hr doesn’t mean a whole lot if you aren’t employed . . .
What restaurants do they operate?
Higher wages = fewer servers = poor service = fewer customers = lower revenue
Nope. Not in North Central Florida, the
land of horses and golf courses. I haven’t
seen a kid around here in twenty years.
Interesting. I looked at their website, and they tend to run more upscale “chains”, which I would think could withstand the increase in minimum wage.
Not like they own 100 Denny’s or Olive Gardens...
I had the same question and found this at Wikipedia: “there are 22 sub-brands under the RUI parent company, with locations in 47 U.S. cities, spread in 11 states, with Hawaii and Alaska included. [1] Brands include Skates on the Bay, Portland City Grill, Manzana Grill, Palisade, Cutters Crabhouse, Stanford’s, Henry’s Tavern, Kincaid’s, Palomino Restaurant & Bar and Portland Seafood Company.”
It’s impolite to say “I told you so”. But we did.
Unions win. Teenagers lose.
Yes I’ve noticed that too. Even on weekends some places aren’t that busy.
I’m surprised that there is a decline in ‘casual dining’.
Doesn’t seem to be the case here in Idaho, Montana, and Wyoming...this time of year, every Applebees, Chilies, the bar-b-que joints, and Olive Garden are almost always packed from 5 to 9 pm.
Maybe it’s a regional thing??
Interesting...I have not heard of any of them.
But of course. Government creates the problems it then comes along to fix.
It's a fake messiah but people want to believe.
Looks like mostly Seafood/Steak and Bar & Grill type places. Only one I recognized Was Kinkaid’s, but the Oahu franchise closed a few years ago.
https://www.r-u-i.com/locations.php
its because they all serve the same kind of trendy crappy food
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