“Americans, now that they are increasingly vaccinated, with capacity restrictions being lifted across the country, with good weather, with a strong economy, people are returning to restaurants,” he told Nation’s Restaurant News after the earnings call. “And it s because they want to gather and celebrate community and literally hug each other again, because we haven t done that for 13 months.”
He also said Dine Brands was still shopping for another concept.
Peyton told investors that the improvement in sales at Applebee’s and IHOP also was driven by historically high consumer savings and federal stimulus checks as well as unemployment rates that are at their lowest level since the pandemic started. Sales might be buoyed further if a new federal infrastructure bill is passed, he said.
The upgraded pay scale will result in hourly employees earning starting wages ranging from $11 to $18.
Chipotle announced Monday that it’s boosting its average wage to $15 per hour by the end of June as the industry continues to struggle with a labor shortage.
The wage increase for new and existing hourly and salaried employees will be implemented over the next few weeks, the company said. The upgraded pay scale will result in hourly employees earning starting wages ranging from $11 to $18.
In addition to the wage increase, Chipotle noted that hourly workers have an opportunity to advance to a “Restaurateur,” a six-figure general manager position, in just three and a half years. The brand also rolled out a $200 employee referral bonus for crew members and a $750 referral bonus for apprentices or general managers.
“Americans, now that they are increasingly vaccinated, with capacity restrictions being lifted across the country, with good weather, with a strong economy, people are returning to restaurants,” he told Nation’s Restaurant News after the earnings call. “And it s because they want to gather and celebrate community and literally hug each other again, because we haven t done that for 13 months.”
He also said Dine Brands was still shopping for another concept.
Peyton told investors that the improvement in sales at Applebee’s and IHOP also was driven by historically high consumer savings and federal stimulus checks as well as unemployment rates that are at their lowest level since the pandemic started. Sales might be buoyed further if a new federal infrastructure bill is passed, he said.
In regards to Black Box’s second question, it appears Morgan’s sentiment has plenty of company.
Higher pay in another industry: 14 percent
Higher pay through unemployment 57 percent
Better quality of life in another industry: 20 percent
Health or customer management concerns due to the pandemic: 4 percent
Other: 5 percent
Where restaurants’ mindset is on this labor topic is crystal. The $300 UI expansion is countering recovery efforts from a staffing perspective. The demand is there, but operators are struggling to satisfy it.
Restaurants told Black Box enhanced unemployment, tax refunds, and stimulus checks are gathering as the perfect storm.
One Fair Wage released a report Wednesday, along with the UC Berkeley Food Labor Research Center, that claimed low wages and tips were, by far, the most popular reason for leaving the restaurant industry, more than 20 percentage points higher than the second most popular reason COVID health risks. The vast majority (78 percent
Plus, a vaccinated-members-only club opens in Los Angeles; March sales for restaurants are up
Each week, Restaurant Hospitality gathers five stories that impact independent restaurant operations that you may have missed.
Here’s your list for the week of April 26:
Labor proves to be a challenge for owners and management
Across the industry, there has been a shortage of willing workers for restaurants. The industry still remains 15% below pre-pandemic job levels, according to the Bureau of Labor Statistics’ March 2021 numbers.
Finding back-of-house labor has been especially difficult, operators said.
Troy Guard of the Denver-based TAG Restaurant Group, said, “Labor is so challenging because now we’re having to pay dishwashers $18-$20 per hour and having to put service charges on check to help with BOH.” Guard said TAG gave back-of-house workers raises of $2 to $5 per hour “to keep people working and happy.”