Upscale Restaurant Chain Goes Bust, Blaming 'Progressive' Wage Laws

[Yo_Mama_Been_Loggin]

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.

“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 in Washington, Oregon and California.

https://www.bloomberg.com/news/articles/2019-07-08/upscale-restaurant-chain-goes-bust-blaming-progressive-wages

Considering the prices these upscale places charge they should be able to pay a living wage. You want your employees spitting in the customers food?

[Quemado]

1. Blaming progressive wage laws is not a good argument.

Their local competition had to raise wages as well. They probably filed for bankruptcy in order to sell off restaurants in jurisdictions with higher wages, but will keep restaurants open in other states with no progressive wages.

It's all about the Benjamins.

[Kurt V.]

2. Amazing that many other restaurants survive.

[mitch96]

17. Yup, if the only way you can survive is to pay poverty wages...... you should not be in business

You don't know how to run a profitable business. or OR OR... your scaming the company and paying yourself too much money...
m

[lame54]

3. Good riddance

[lunasun]

4. Meh blame it on the sun perhaps just not your bad business moves, over expanding or changing habits

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.”

Forced I tell ya !! OK so they had a rotten attitude from the get go
Adios adieu ciao

[barbtries]

5. boo fucking hoo.

look at where the money went. bet it wasn't the employees.

[SoCalDem]

7. ditto

[MichMan]

6. Servers generally do pretty well at more upscale restaurants

20% tip on a $12 appetizer, $20 entrée & an $8 drink is 2x more than the same 20% tip at an establishment with $8 burgers and $5 beers.

[SoCalDem]

8. I doubt that Jim had issues with his salary

Couldn't find it online, but this is what Bloomberg had to say about him He's the CFO


Mr. James Eschweiler, also known as Jim, has been Chief Executive Officer and President at Restaurants Unlimited, Inc. since July 17, 2015 and serves as its Secretary and treasurer. With more than 20 years of experience in accounting, finance and strategy at high-growth retail and hospitality companies, Mr. Eschweiler is responsible for developing long-term strategies and growth opportunities.

He joined Restaurants Unlimited in April 2014 as chief financial officer, and under his leadership, streamlined and improved processes while managing the financial strategy for Restaurants Unlimited's 22 restaurant brands spanning 47 establishments throughout 11 states. He served as chief financial officer for fashion retailer Aritzia LP, which boasts more than 50 stores in the U.S. and Canada.

He began his career as a certified public accountant with Arthur Andersen LLP and spent 12 years with Starbucks Coffee Company, including seven years in the international group as Vice President of finance based in Seattle and Hong Kong.

Following Starbucks, he spent four years as the chief financial officer of Distant Lands Coffee, helping to integrate two diverse businesses which custom developed coffee programs for Panera, McDonalds and several major grocery chains while also operating coffee farms and mills in Costa Rica. He holds a Master of Business Administration in finance from the University of Washington'sMichael G. Foster School of Business, and a Bachelor of Science in accounting from Marquette University.

[NightWatcher]

9. Chains are dying thanks to review apps. Good restaurants survive

People no longer feel the need to eat at "safe" chains but are becoming adventurous thanks to apps and reviews.

This guy just can't hang (his food was probably nasty or at least plain) and his restaurants are failing because reviews sunk him and people found better places to eat.

[TheBlackAdder]

10. Perhaps the restaurant chain just sucked balls.

[displacedtexan]

11. Yelp reviews for Henry's Tavern (TMobile Park, Seattle) are not good.

Can't copy text from the yelp app. With such a perfect location, a good restaurant should make a fortune. Also, that CEO has had a lot of jobs. Not a good sign, either.

[WhiteTara]

12. the real reasons they're closing

two disappointing restaurant openings and consumers shunning casual dining

[eilen]

13. We hardly ever go out to eat anymore

Part of it is because prices have gone up on groceries. Our splurges are now take- out pizza.

[UniteFightBack]

15. Groupon has some great deals. nt

[Wounded Bear]

14. Might also be a harbinger of economic stress...

people start cutting back and outings to high end restaurants might get a bit out of many people's range.

[Demonaut]

16. would you spit in someones food because your pay was too low?