As part of its commitment to hiring thousands of new workers, McDonald’s is raising salaries at its company’s restaurants and encouraging its American franchises to do the same.
McDonald’s is raising its salaries at 650 company stores in the United States as part of its commitment to hiring thousands of new workers in a shrinking job market.
The fast food giant also encourages its franchises, which account for 95 percent of its restaurant base, to increase pay.
McDonald’s is the latest restaurant chain to announce pay rises. Chipotle said Monday he will raise workers’ wages to an average of $ 15 an hour by the end of June. Darden Restaurants, owner of Olive Garden and other chains, said in March that it will guarantee workers $ 12 per hour, including tips in 2023.
Amazon, Costco and other large companies have also announced wage hikes in recent weeks.
Wages and benefits for American workers have risen rapidly as vaccinations increase and employers are trying to meet the growing demand for restaurants and other businesses. Total compensation for U.S. workers rose 0.9 percent in the first three months of this year, the largest increase in more than 13 years, according to the U.S. Department of Labor.
Chicago-based McDonald’s said Thursday that its hourly wages will increase by an average of 10 percent over the next few months to $ 13 an hour, up to $ 15 an hour in 2024. Beginner workers will earn as much as minimum $ 11 per hour; shift managers will earn at least $ 15 per hour.
But only about 5 percent of McDonald’s U.S. stores are owned by the company. The vast majority of nearly 14,000 American McDonald’s stores are owned by franchisees, who set the payment at their own restaurants.
McDonald’s said it had no data on salaries at franchised restaurants. But the company is asking franchisees to follow suit.
“We encourage all of our owners / 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,” the president of the United States McDonald’s Joe Erlinger in a letter to employees.
In a statement, the National Franchisee Leadership Alliance, which negotiates with the company on behalf of franchisees, expressed support for wage increases and encouraged restaurants to remain competitive in their local markets.