Thursday, October 19, 2017

"Chipotle downgraded by Bank of America on concerns that labor is still too expensive"

"Bank of America Merrill Lynch downgraded Chipotle and cut its earnings targets for 2018 and 2019, saying the struggling restaurant chain will have trouble cutting back labor costs any further than it already has"

Related: "It’s been two years since Danny Meyer announced he would eliminate tipping at all of his company’s restaurants"

“The majority of our strongest people have left,” says one former manager at Union Square Cafe who, like many people interviewed for this story, asked to remain anonymous to avoid burning bridges in the industry. At two of USHG’s other restaurants, Maialino and Gramercy Tavern, current and former servers say their pay dropped by about $100 per week after H.I. was implemented. Another Union Square Cafe front-of-house employee says her annual pay dropped from $60,000 per year before H.I. to $50,000 after tips were eliminated.