1851

As restaurant sales <a href="https://1851franchise.com/new-study-reveals-how-many-americans-are-ready-to-dine-out-again-2715641">pick up</a> around the country, several chains have reported suffering from a labor shortage as they struggle to hire enough people to handle the incoming demand. Specifically, operators that are looking to stay open all night are finding it increasingly difficult to find staff for all 24 hours, despite <a href="https://www.bls.gov/news.release/jec.nr0.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">high</a> unemployment rates.During <a href="https://seekingalpha.com/article/4424344-dennys-corporation-denn-ceo-john-miller-on-q1-2021-results-earnings-call-transcript?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">the brand’s Q1 earnings call</a> on Tuesday, Denny’s executives said&nbsp;that the lack of workers has prevented over two-thirds of franchisees from resuming 24-hour operations, a primary source of revenue for the diner chain.&nbsp;“We can't even find the individuals to interview,” said CFO <a href="https://www.linkedin.com/in/robert-verostek-0548b719/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">Robert Verostek</a> during the call, noting that the chain needs to hire 20,000 people systemwide.&nbsp;The inability to stay open all night is having a significant impact on the chain’s post-pandemic recovery. The Denny’s locations that were able to operate 24/7 reported April sales were 11% higher than pre-pandemic levels, while comparable sales at units closed at night fell 11%. In Q1, Denny's same-stores were down 20% from the same period of 2019 and 9.7% from the first quarter of 2020, according to the earnings call.Earlier this week, <a href="https://1851franchise.com/7-eleven-franchisees-ask-for-relief-from-overnight-operating-hours-amidst-worker-shortage-2715662">7-Eleven franchisees</a> reported a similar labor shortage issue, asking their franchisor to suspend 24/7 service because they can't find individuals willing to work the graveyard shift.&nbsp;While it is hard to pinpoint a specific reason for the growing labor shortage, <a href="https://1851franchise.com/stimulus-checks-inspire-viral-franchise-buying-tweets-2715254">stimulus checks</a> and increased unemployment benefits could be disincentivizing people from returning to lower wage work. In addition, in the restaurant industry specifically, many employees may feel concerned about the health risk — the CDC released a <a href="https://www.restaurantdive.com/news/cdc-on-site-restaurant-dining-leads-to-increased-rate-of-covid-19-cases-d/596258/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">study</a> in March showing COVID-19 illnesses and death rates are higher in areas that allow on-site restaurant dining.According to a <a href="https://onefairwage.site/wp-content/uploads/2021/05/OFW_WageShortage_F.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">One Fair Wage report</a> released on Wednesday, the top three reasons restaurant workers are leaving their jobs are low wages and tips (76%), COVID-19 safety concerns (55%) and concerns over hospitality and harassment from customers (39%).To compensate for some of these issues and attract new workers, many restaurant brands have been rolling out increased benefits. Chipotle, for example, announced it would be offering <a href="https://www.qsrmagazine.com/employee-management/chipotle-give-nearly-65-million-bonuses-employees?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">$6.5 million</a> in discretionary bonuses to managers, apprentices and field leaders last year. <a href="https://whataburger.com/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">Whataburger</a> is offering its general managers <a href="https://www.prnewswire.com/news-releases/whataburger-launches-free-virtual-leadership-conference-april-21-with-nba-legend-david-robinson-award-winning-chef-aaron-sanchez-and-founder-of-the-pivot-method-jenny-blake-as-it-plans-to-hire-50-000-to-support-strategic-growth-301265294.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">bonuses</a> of up to 150% of a manager's target incentive and six-figure salaries.&nbsp;Raising the <a href="https://1851franchise.com/matthew-yglesias-on-how-a-minimum-wage-hike-would-impact-franchising-2715227">minimum wage</a> could be another way to incentivize employees to return to work, but many operators, including <a href="https://flipboard.com/topic/salariesandwages/denny-s-shareholders-revolt-after-top-exec-concedes-15-minimum-wage-won-t-hurt-/f-635322fc8d%2Fnewsweek.com?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">Denny’s stakeholders</a>, argue that right now is not the right time to put more pressure on restaurants’ bottom lines.In addition to looking for new employees, brands have been finding ways to maximize the efficiency of their established manpower, most notably through the use of <a href="https://1851franchise.com/virtual-brands-boost-restaurant-revenues-30-50-expert-says-2715094">virtual brands and ghost kitchens</a>.&nbsp;Late last year, Denny’s rolled out <a href="https://1851franchise.com/virtual-brands-boost-restaurant-revenues-30-50-expert-says-2715094">two new virtual brands</a> — The Burger Den and The Meltdown. Around 1,100 domestic Denny’s units are now offering the delivery-only Burger Den menu, and The Meltdown has been implemented by about 175 stores. Traditional Denny’s operations are focused on the daytime, but since 70% of Burger Den’s business comes during dinnertime and late into the night, executives say participating stores can generate more revenue without having to hire additional staff.&nbsp;“These brands provide opportunities not only at dinner and late night to leverage underutilized labor and kitchen space, but we are also seeing a meaningful number of transactions during the week versus the weekend,” said CEO <a href="https://www.linkedin.com/in/johnchrismiller/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage-2715676" target="_blank" rel="nofollow">John Miller</a> during the earnings call.It remains uncertain how long this labor shortage will last, but looking ahead, brands may need to continue getting creative if they hope to fulfill the incoming consumer demand and speed up the post-pandemic recovery process.

Denny’s Is the Latest Brand To Suffer From Growing Labor Shortage

1851 Franchise

With increased unemployment benefits and ongoing COVID-19 health concerns, franchise operators are having a hard time finding employees, and it's stunting their pandemic recovery.

dennys-is-the-latest-brand-to-suffer-from-growing-labor-shortage

HomeTeam Inspection Service

Photo of four HomeTeam Inspection Service inspectors

The HomeTeam Advantage: 30 Years Strong and Still Growing

hometeam-30-year-legacy

Mathnasium

Mathnasium Franchise - James Temple - 1851 Franchise

Fast Growth and Bold Moves: James Temple’s Journey to Franchise Ownership With Mathnasium Learning Centers

mathnasium-franchise-james-temple

TruBlue Home Service Ally

TruBlue Accelerates Growth in 2025 With Record-Breaking Midyear Momentum

trublue-accelerates-growth-in-2025-with-record-breaking-midyear-momentum

Caring Transitions

Building a Legacy With Caring Transitions: How Franchisees Create Lasting Impact While Growing a Successful Business

building-a-legacy-with-caring-transitions-how-franchisees-create-lasting-impact-while-growing-a-successful-business

Why Andrew Boules Chose Mathnasium Learning Centers and Built a Six-Unit Franchise Portfolio Fast

mathnasium-franchise-andrew-boules-six-locations

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

U.S. Budget Deficit Rises as Tariff Revenues Increase — Potential Considerations for Franchising

us-budget-deficit-rises-as-tariff-revenues-increase-potential-considerations-for-franchising

Dickey's Franchisee Backlash - Lawsuits - Disputes - 1851 Franchise

Texas-Based Dickey’s Barbecue Pit Grapples with Franchisee Backlash

dickeys-barbecue-pit-franchisee-lawsuits

Design with person in blazer, with laptop, holding sign that reads "LOOKING FOR A JOB"

Uptick in Jobless Claims Points to Continued Instability in Labor Market

jobless-claims-franchise-growth

Extraordinary Brands Acquires CycleBar and Rumble, Shaking Up Boutique Fitness Franchising

extraordinary-brands-cyclebar-rumble-boxing-acquisition

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

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

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

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

graphic for a spotlight from 1851 franchise featuring Kevin Rarick from caring transitions

Army Veteran Returns Home To Launch Caring Transitions Franchise in Reading, Pennsylvania

kevin-rarick-caring-transitions-reading-pa

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

Denny’s Is the Latest Brand To Suffer From Growing Labor Shortage

MORE STORIES LIKE THIS