What McDonald’s minimum wage raise says about fast-food franchise future

7/12/21
 
   < < Go Back
 
from CNBC,
7/10/21:

McDonald’s is among fast-food franchises to raise wages in a tight labor market and plans to reach an average of $15 an hour by 2024 at all company-owned restaurants.

Competition for workers is intense and food franchises like McDonald’s and Chipotle are competing with retailers like Amazon, Walmart and Target, McDonald’s CEO Chris Kempczinski noted in a recent CNBC Evolve interview.

The franchise industry has made its position clear — wage floors and ceilings should be set by individual restaurant operators. “Franchisees are best situated to make wage decisions in their local communities,” said Matt Haller, senior vice president of government relations at the International Franchise Association.

o 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. “It’s a long-term look at the business versus a very short-term look at the business,” Locke said. “I think it’s a much better business model.”

More From CNBC: