Remember this when the Dems try to force $15/hr minimum wage on the rest of us...
Restaurants Unlimited, an operator of 35 "polished casual" eateries, is filing for bankruptcy. In their filing documents, they point to the $15/hr minimum wage that cities like Seattle and Portland have forced upon them. In addition to the progressive wages, two disappointing restaurant openings and consumers shunning casual dining are to blame for the bankruptcy filing, Chief Restructuring Officer David Bagley said in court papers.
“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,” ...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 company’s restaurants are concentrated in Washington, Oregon and California. Exactly where the $15/hr cities are located. Hmmm. Imagine that.
Wage increases in Seattle, San Francisco and Portland boosted the company’s wage expenses by a total of $10.6 million through its fiscal year end 2019, Bagley said. Revenue for the year ended May 31 was $176 million, down 1% from the prior year.
Restaurants Unlimited employs about 1,885 part-time workers and 168 full-time restaurant staff as well as 50 salaried employees at its headquarters in Seattle.
The company tried to sell itself in 2016, and when that failed, tried to restructure its $40 million debt, but failed there as well. Filing for Chapter 11 seems to be the best way to seek a sale. It has arranged for a $10 million debtor-in-possession loan that will help it operate during bankruptcy, court documents show. The company has just $150,000 of cash on hand, hasn’t paid debt holders since January and is behind on some payments to landlords and vendors.
Robots are replacing minimum wager jobs in fast food (think about something as basic as using a kiosk to order at McD's). Mr Flippy is real and he's coming for your job. Now, "polished casual" eateries are moving to the model where, instead of being greeted by a hostess who takes you to a table where your server comes up and introduces himself, you now go order at the counter, take a number, and somebody brings you your food. It won't be too much longer before the age old right of passage food service job is now replaced by being a robot line chef.
But keep pushing for that $15, progressives. Pretty soon you'll be bowing down to the robot overlords.
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