![]() ![]() To offset the higher costs, he did raise prices slightly, but thinks customers "expected" this, since his team publicly communicated the higher wages for its workers. "The hardest part is hiring, retaining and training great people."īut since his pay rise, introduced independently of the McDonald's announcement the following month, retention levels have shot up. "We were just a virtual hamster on the hamster wheel we weren't going anywhere," he says. In the restaurant industry, turnover of over 100% is common. Every month around 250 employees would leave and the same number need training. "If there wasn't a huge shortage of labor, we might not have taken the action."Īt the start of the year, Locke had scaled down his menu choices, helping his margins, but he was still struggling with staffing shortages. ![]() "I'll be honest with you," he said during a recent phone interview. "If McDonald's corporate can control how franchises make their Big Macs and how they market, I know that they can figure out how to pay every single worker a living wage of at least $15." he said.įor Locke, the franchise operator in Ohio, the introduction of higher wages was ultimately a business decision more than a moral one. Then after a year he became a manager and moved up to $11, before McDonald's recently moved him to $13. "We all wear the McDonald's uniform, and we all deserve a living wage."Ĭardona was first employed at $9.25 an hour, only a dollar more than the minimum wage in Florida at the time. "We don't care about whether or not we work at a franchise or a corporate store," says Cristian Cardona, a 21-year-old who began working at a McDonald's-operated restaurant in Orlando three years ago. wages are going up because the economy is strong."Īmong the workers arguing for higher wages, a distinction between McDonald's corporate or franchisee can feel semantic. While he didn't want to comment on a raised federal minimum wage, the McDonald's CEO said, "there's no doubt that $7.25 in this day and age is not what you should be paying or need to be paying to be competitive in the marketplace. it's this mindset switch from being, you know, one of defensive to really being much more aggressive." was part of an effort to move the franchisee mindset away from worrying about, "am I going to be able to pay, you know, my mortgage or pay my loan that's due this month?. In a recent interview at the CNBC Evolve Global Summit, McDonald's CEO Chris Kempczinski said the company's decision to inject roughly $1 billion of liquidity into its system earlier this year after the worst of the pandemic had passed - and on top of several years of balance sheet growth in the U.S. And it has been trying to send a message of financial support to independent restaurant operators. McDonald's is among restaurant chains to emerge from the pandemic in a strong financial position, similar to Chipotle, which recently raised wages - as well as in its case, menu prices by 4%. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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