Power & Market

Minimum Wage Laws: More Losses at Red Robin

Red Robin

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.

All Rights Reserved ©
What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. 

Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

Become a Member
Mises Institute