Restaurant Chain Files For Bankruptcy, Cites Progressive Minimum Wage Laws

Le·gal In·sur·rec·tion | 7/14/2019 | Fuzzy Slippers
moemajor (Posted by) Level 3
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The progressive push for higher minimum wage laws has had perfectly predictable results: lower-income people are most harmed, businesses switch to robots, businesses shutter, or as in the case of west coast Restaurants Unlimited, Inc., they simply file for bankruptcy. The chain closed six restaurants prior to filing.

We’ve reported many such incidents here at Legal Insurrection. Here’s just a sampling:

Victim - Ignorance - World - Impact - Wage

The latest victim of progressive ignorance about the real world impact of raising the minimum wage too high is Restaurants Unlimited, Inc. whose restaurants include Henry’s Tavern, Stanford’s and Kincaid’s.

Bloomberg reports:

Wage - Policies - Eatery - Operator - Restaurants

Progressive wage policies helped force upscale eatery operator Restaurants Unlimited Inc. into bankruptcy, according to court documents filed Sunday.

The company, which operates 35 restaurants ranging from fine dining to “polished casual” eateries, including Henry’s Tavern, Stanford’s and Kincaid’s, filed for Chapter 11 protection in Delaware on Sunday. Minimum wage hikes, 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.

Years - Company - Profitability - Wage - Laws

“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,” Bagley said. “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...
(Excerpt) Read more at: Le·gal In·sur·rec·tion
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