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Food Service Industry Updates Franchising Industry Updates

McDonald’s Raising Wages in Light of Worker Shortage

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McDonald’s is joining the ranks of foodservice businesses raising wages out of concern about a serious shortage of restaurant workers.

The burger giant said Thursday that hourly wages at its 650 company-owned locations will increase an average of 10% to $13 per hour in coming months, and rise to $15 per hour by 2024. Entry-level workers will make at least $11 per hour, and shift managers will make at least $15 per hour.

Company-owned restaurants represent only a fraction of McDonald’s nearly 14,000 locations, most of them franchised. However, the company is encouraging franchisees to follow suit.

“We encourage all our owner/operators to make this same commitment to their restaurant teams in ways that make the most sense for their community, their people and their long-term growth,” McDonald’s U.S. President Joe Erlinger wrote in a letter to employees, AP reported. The U.S. National Franchisee Leadership Alliance supports McDonald’s actions, AP said.

Earlier this week, Chipotle announced plans to raise its restaurants’ wages and said it will offer its employees a $15 average hourly wage by the end of June. Chipotle said it would begin rolling out the wage increases for new and existing hourly and salaried restaurant employees in the coming weeks.

The announcements come at a time when restaurants are desperate to hire up to meet demand as consumers return to in-store dining. Collectively, Chipotle, Sonic, KFC, McDonald’s, Subway, Whataburger and Taco Bell have announced they are seeking 180,000 new employees this spring.

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