Red Robin Will Offset Minimum Wage Increases by Firing Busboys

Red Robin Will Offset Minimum Wage Increases by Firing Busboys

Already threatened by the recent drop in casual dining revenue, restaurants like Red Robin are expected to face another severe challenge this year by way of minimum wage hikes.

Red Robin is headquartered in Colorado and most of its restaurants are stationed in the Midwest and towards the Pacific – all states that have lobbied successfully for an increase in the minimum wage up to $8.50 to 11.50 an hour. While the federal minimum wage remains closer to $7.50, states have taken it upon themselves to add the hike in their respective areas.

Who Does This Affect the Most?

Busboys. Red Robin has already experimented with eliminating the position of expediter – the people who plate the food in the kitchen for the servers who then deliver it to the customer – and have annual savings upwards of $10 million. They will look to do the

same thing with busboys, another group of people who stand to benefit from the minimum wage increase but who have traditionally been at the low end of the pay scale.

Who Else Will This Affect?

Servers. And managers. And anyone else associated with a local Red Robin establishment.

Busboys provide a critical service in the casual dining environment. When a customer gets up from the table, it’s the busboy’s job to get there as quickly as possible, remove the plates, wipe down the table and chairs, and get the table setting ready for the next customer. This process is called “turning a table over”, and if all goes according to plan, that entire process should take less than a couple of minutes. As any server will tell you, that can be the difference between an extra 10-20% in tips over the course of an entire night. Not only that, but busboys often participate in the washing duties before, during, and after mealtime.

If that occupation is all of a sudden eliminated, who is going to pick up the slack? The waiters will have to clean the tables themselves, get the place settings taken care of, and then help with any other auxiliary duties as they arise, in addition to their normal serving duties. If a store is especially crowded one night or the restaurant is understaffed, that could make for a long and frustrating day.

What Impact Will This Have on the Restaurant?

According to Restaurant consultant John Gordon, a big one. With the waitstaff now focused on multiple objectives and less on the customers, that means more opportunities for customer service issues to arise and create big problems. Busboys may be more “behind the scenes than others,” but they still provide a valuable service to the restaurant.

Is There Any Other Choice?

According to Chief Financial Officer Guy Constant, no. Slashing busboys in the face of oncoming wage hikes are expected to save $8 million this year at over 500 restaurants.

Moreover, Red Robin has been experimenting with ways to speed up delivery service from kitchen to customer without losing anything in terms of food quality or customer service. If it can do that, then eliminating the busboys may be a win in the long run regardless.

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