1851

It’s been a tough year for the restaurant industry. From furloughing workers amid COVID-19 related closures to pivoting to takeout and delivery models, reopening at reduced capacity to <a href="https://1851franchise.com/nationwide-ketchup-shortage-costs-franchisor-upwards-of-500000-2715416#stories">dealing with ketchup shortages</a> and rising food costs, restaurants just can’t seem to catch a break.&nbsp;Now, as restaurants across the country finally reopen at full capacity to meet unprecedented demand, what should be a reason to celebrate is yet another nightmare: Enter the era of the <a href="https://time.com/6076710/restaurants-labor-shortage/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">restaurant worker labor shortage</a>.As restaurants compete for workers, they’re courting them in new ways, offering substantial sign-on bonuses and increased wages.&nbsp;In May, McDonald’s <a href="https://corporate.mcdonalds.com/corpmcd/en-us/our-stories/article/.mcopco-wage-raise.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">announced </a>they would increase worker wages at company-owned restaurants by an average of 10%.“Our first value is taking care of our people, and today we are rewarding our hardworking employees in McDonald-owned restaurants for serving our communities,” said McDonald’s USA President <a href="https://www.linkedin.com/in/joe-erlinger-7445b88/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">Joe Erlinger</a> in the press release. “These actions further our commitment to offering one of the leading pay and benefits packages in the industry.”Earlier this month, Papa John’s <a href="https://ir.papajohns.com/news-releases/news-release-details/papa-johns-announces-new-hiring-referral-and-appreciation?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">announced</a> new hiring, referral and appreciation bonuses for its approximately 14,000 front-line team members in the company’s corporate restaurants and supply chain. The program includes $50 referral bonuses for corporate team members for every new hire they bring in, with an additional $50 bonus paid to the new team member. Existing corporate team members are also eligible for $400 in appreciation bonuses.&nbsp;The company also announced expanded health, wellness, paid time off and college tuition benefits as they “strive to be the employer of choice within our dynamic industry,” the press release said.While the federal minimum wage remains dismally low at $7.25 an hour, demand for staff pushed restaurant worker wages up 7.9% in June from their pre-pandemic level, according to the most recent <a href="https://www.bls.gov/news.release/pdf/empsit.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">jobs report</a>.&nbsp;Chipotle Mexican Grill has raised its workers’ pay to <a href="https://newsroom.chipotle.com/2021-05-10-Chipotle-Increases-Wages-Resulting-In-15-Per-Hour-Average-Wage-And-Provides-Path-To-Six-Figure-Compensation-In-~3-Years?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">an average of $15 an hour,</a> Olive Garden topped that at <a href="https://www.prnewswire.com/news-releases/darden-restaurants-reports-fiscal-2021-third-quarter-results-announces-team-member-investments-declares-quarterly-dividend-authorizes-new-500-million-share-repurchase-program-and-provides-fiscal-2021-fourth-quarter-outlook-301255413.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">more than $17 per hour</a> and some Subway franchises are offering workers <a href="https://jobs.localjobnetwork.com/job/detail/55676122/Team-Member-500-to-1000-Signing-Bonus?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195#:~:text=In%20addition%20to%20competitive%20pay,thttpsheir%20hourly%20pay%20and%20tips." target="_blank" rel="nofollow">sign-on bonuses of up to $1,000</a>.Meanwhile, labor advocacy group One Fair Wage has created a <a href="https://ofwemergencyfund.org/wcwfund?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">new relief fund</a> to encourage workers to remain in the industry with grants of up to $1,200.While the COVID-19 pandemic caused many restaurant workers to <a href="https://www.wsj.com/articles/hospitality-workers-are-pushed-into-new-careers-as-pandemic-begins-second-year-11613999342?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">reexamine their careers</a>, the restaurant industry is hoping wage increases and other perks will be enough to entice new workers and retain existing ones.&nbsp;“The incredible hard work and commitment of our team members, which powered Papa John’s tremendous performance and transformation over the past 18 months, is just as important to our sustained long-term growth,” said Papa John’s CEO <a href="https://www.linkedin.com/in/rob-lynch-3268264/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=a-new-normal-emerges-as-restaurants-jockey-for-workers-2716195" target="_blank" rel="nofollow">Rob Lynch</a> in the July 8 press release.&nbsp; “Similar to programs being offered by our franchisees, these new bonuses for our team members in our corporate restaurants and QCCs reflect the value we place on growing, retaining and supporting our dedicated team.

A ‘New Normal’ Emerges As Restaurants Jockey for Workers

1851 Franchise

To combat staff shortages, restaurants are serving up higher pay and hefty signing bonuses.

a-new-normal-emerges-as-restaurants-jockey-for-workers

Senior Care Authority

How This Senior Care Authority Franchisee Turned Love for His Grandparents Into a Lifelong Calling

how-this-senior-care-authority-franchisee-turned-love-for-his-grandparents-into-a-lifelong-calling

HomeTeam Inspection Service

Hometown News: Like Father, Like Son — Family-Run Inspection Business Blends Generations of Expertise and a Keen Eye for Detail

father-son-home-inspection-franchise-florida

KLA Schools

KLA Schools of Beachwalk Hosts Admissions Kick-Off Celebration

kla-schools-of-beachwalk-hosts-admissions-kick-off-celebration

Good Day Columbus: Home Insurance Expert Reveals Why Central Ohio Premiums Are Rising and How to Combat Costs

rising-home-insurance-costs-ohio

CapitalSpring

Primetime Fitness Expands Crunch Portfolio With CapitalSpring’s Backing

primetime-fitness-expands-crunch-portfolio-with-capitalsprings-backing

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising

ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

A ‘New Normal’ Emerges As Restaurants Jockey for Workers

MORE STORIES LIKE THIS