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Citing higher minimum wages in Seattle,
Portland, and SF, West Coast restaurant
chain files for bankruptcy

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Posted By: ladydawgfan, 7/15/2019 5:21:58 PM

Progressives never learn. Even as Democrats running for president line up behind a national $15/hour minimum wage, on the West Coast, where cities like Seattle, Portland, and San Francisco all have implemented this demand, a restaurant chain with over 2,000 employees has filed for bankruptcy, citing the high minimum wages that have increased its costs. Jeremy Hill reports for Bloomberg (hat tip: Legal Insurrection): Progressive wage policies helped force upscale eatery operator Restaurants Unlimited Inc. into bankruptcy, according to court documents filed Sunday.

Comments:

And as night follows day, the law of unintended consequences strikes again!!

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Reply 1 - Posted by: Geoman 7/15/2019 5:26:51 PM (No. 124569)
Don't be so sure that bad economic consequences are unintended. Bad economics hurt the president and are believed to help the communists.
6 people like this.

Reply 2 - Posted by: Old Army Vet 7/15/2019 5:42:16 PM (No. 124585)
Well, it's not like no one warned them. When wages are raised by government then this is what you get.
8 people like this.

Reply 3 - Posted by: earlybird 7/15/2019 5:50:30 PM (No. 124593)
Higher end restaurants have much higher food cost percentages. Add on a huge tab for the lowest level employees, and there is no room for profit. So how many jobs did this cost the whiners?
10 people like this.

Reply 4 - Posted by: skacmar 7/15/2019 6:06:14 PM (No. 124603)
Federal Legi$lators, states, and cities always seem to forget that $15.00 per hour does not cost $15.00 per hour. There are the taxes and expenses that are associated with the higher wages that the employee does not see and nobody talks about. This includes payroll based employer expenses like state and federal unemployment taxes, the employers part of Social Security (7.65%!), workers compensation insurance based on payroll, liability insurance which may be in part based on payroll, 401k match based on wages, pension contributions..... The $15.00 per hour that people seem to think can be absorbed by employers can easily become over $20.00 per hour. Add to the increased wages the added benefit requirements that states and cities have been adding like mandatory sick leave, maternity leave, health insurance, and other mandatory benefits and it is a wonder anyone would start a business today in some cities or states.
15 people like this.

Reply 5 - Posted by: ZeldaFitzg 7/15/2019 6:18:12 PM (No. 124617)
An upscale "polished casual" restaurant near us has the variation mentioned:::: order at the counter and then go back to pick up your food. Their prices are just as expensive as other "polished casual" restaurants in the Dallas area. I resent this mightily, and wouldn't go there at all except that my husband likes their breakfast food, which is served all day. My guess is that there is a tip jar at the counter, but we do not use that new-fangled request for money. (The first time I saw a counter tip jar was in New Orleans about twenty years ago. A person who stands behind a counter and only turns around to pour me a Coke is not performing the personal service traditionally seen as qualifying for a tip. YMMV, as always.)
7 people like this.

Reply 6 - Posted by: jalo1951 7/15/2019 6:20:10 PM (No. 124619)
Be careful what you wish for.
5 people like this.

Reply 7 - Posted by: ZeldaFitzg 7/15/2019 6:21:57 PM (No. 124625)
P.S. I am not against tipping. Our sons often worked in restaurants in high school and college. If the restaurant service is good my husband and I tip a minimum of 20%. For very personal service such as my hairstylist or pedicurist, I tip at least 25%. My apologies for the second post.
6 people like this.

Reply 8 - Posted by: Jesuslover54 7/15/2019 6:49:28 PM (No. 124649)
Cue the fusion taco trucks.
2 people like this.

Reply 9 - Posted by: Starboard_side 7/15/2019 7:09:15 PM (No. 124666)
Mostly WA and OR locations, and I'll bet they were strong supporters of Seattle and Portland liberal/progressive policies. Heck, it's not like people don't have choices. Remember, we are a consumption economy, so if government takes more then there is less to spend on things like going to dinner, movies, hotels, amusement parks, etc...
3 people like this.

Reply 10 - Posted by: Cousair 7/15/2019 7:10:16 PM (No. 124668)
EAT Eliminate All Tipping
1 person likes this.

Reply 11 - Posted by: bad-hair 7/15/2019 7:38:42 PM (No. 124693)
If I go into a restaurant hosting a party of 18, believe me the added service charge of 18% is not going to cut it. If you have to serve 18 people the tip will be north of 35% If I am at a table for two with my lovely wife on our anniversary, get ready for the standard 15%. If you work in an industry where you compensation depends on your attention to those who pay you, that's what we call facts of life. If your compensation depends on your 5th level calculus skills or exceptional understanding of US corporate law. then you will probably be paid more than 20 percent.
2 people like this.

Reply 12 - Posted by: DVC 7/15/2019 10:28:44 PM (No. 124805)
Actions have consequences. Especially economic actions. But then again, Marxists don't actually believe in economics. But, whether they believe or not, the truth of economics DOES rule, and the consequences are real.
1 person likes this.

Reply 13 - Posted by: Chuzzles 7/15/2019 10:46:14 PM (No. 124818)
Had to go to the article to find out the establishment names, but those are some pretty decent places to dine. Sorry they have been forced against the wall though. Government ruins everything it touches, especially if it is liberal snowflake run.
0 people like this.

Reply 14 - Posted by: Strike3 7/16/2019 2:16:35 AM (No. 124941)
That was one blunder that is showing fast, predictable results. Fast food establishments are losing customers quickly because, although there is no tipping, their shrinking burgers are not worth the eight or nine bucks they now must charge. Get ready for the new vending machines to replace much of the work force.
0 people like this.

Reply 15 - Posted by: Trigger2 7/16/2019 3:29:46 AM (No. 124954)
Once again the demonrat communist party has destroyed a business by their communist policies and laws. I hope those workers rue the day they voted themselves out of a job.
0 people like this.

Reply 16 - Posted by: XCenturion 7/16/2019 10:24:15 PM (No. 125774)
Stop tipping!
0 people like this.

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