Was wondering if this has been factored into the stock price.
I work for Red Lobster. They had their quartely server meeting yesterday (Saturday Morning 2/19/11) and announced their new "Tip-Sharing" program.
All bartenders at Darden Restaurants, which i imagine is quite a lot, will now have their hourly pay reduced to minimum wage. The difference between what they were making and the new minimum wage Darden is paying them will now be made up by a Tip-Sharing program that is funded by...you guessed it..the servers.
Darden is now paying all of their bartenders at minimum wage...which has to save them A LOT of money and the difference is being paid by the servers on a 1% of all sales tip out program.
I might be quitting as a server soon because I think they are abusing their employees, mainly the servers, just a bit more and more all in order to save a buck and of course raise their stock price.
Chili,s been doing this for years. The servers pay 15 each to bar and bus. Also now they team up in sections to eliminate bus on most shifts. The servers bus too during those shifts. I actually quit last Sept after the decision. GLTU all
But not all bars can handle that many customers and they don't run happy hours or specials so most bartenders only make tip out. The darden bartenders in my area figure to loose 10K a year. The local bartenders make what the Darden bartenders were making Plus some.
They are getting $5.00 per hour which is less than minimun wage, If they are cutting labor costs so much that means the have little control of their food costs. With food prices going up in the long run Darden may have trouble making profits.
i remember not too long ago they announced the increase in fish and meat, prices,and chicken prices were going to go down and cover some of that! anyway to make profit.as long as they dont have to pay for it! will this affect our stocks?