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

Seniors Helping Seniors®

Photo of two people sitting together, holding mugs, smiling at each other

Seniors Helping Seniors® In-Home Care Services Expands to St. George, UT

seniors-helping-seniors-in-home-care-services-expands-to-st-george-ut

Mosquito Hunters

Design with Mosquito Hunters, Pest Hunters, and Humbug Holiday Lighting branded vehicle

Scaling the Rockies: Brad Goins’ Remote Success With Pest Hunters-Mosquito Hunters-Humbug Holiday Lighting in Colorado

remote-franchise-ownership-success-pest-hunters-mosquito-hunters-humbug-lighting

TWO MEN AND A TRUCK

TWO MEN AND A TRUCK® and TWO MEN AND A JUNK TRUCK® Celebrate Franchise Success at Annual Conference

two-men-and-a-truck-and-two-men-and-a-junk-truck-celebrate-franchise-success-at-annual-conference

USA Ninja Challenge

How Dale Grant Used Three Decades of Gymnastics Expertise to Build USA Ninja Challenge

how-dale-grant-used-three-decades-of-gymnastics-expertise-to-build-usa-ninja-challenge

Preservan

Preservan Celebrates First-Ever BrightPath Gathering: Lighting the Way for Community and Sustainability

preservan-celebrates-first-ever-brightpath-gathering-lighting-the-way-for-community-and-sustainability

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 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

Yum! Brands CEO David Gibbs To Retire in 2026 After 36 Years With the Company

yum-brands-ceo-david-gibbs-to-retire-in-2026-after-36-years-with-the-company

Hooters Bankruptcy - Chapter 11 - April 2025 - 1851 Franchise

Hooters Files for Bankruptcy, Sells Restaurants to Franchisee Group

hooters-bankruptcy-chapter-11-april-2025

Fly Dance Fitness Expands With First Franchise Location in Georgia

fly-dance-fitness-franchise-expansion

&pizza - Fast-Casual Pizza Chain Begins Franchising - 1851 Franchise

&pizza Embraces Franchising To Fuel Bold New Growth Strategy

andpizza-franchising-ceo-mike-burns

CFOs See Recession as Likely in ’25; Why Now Is the Time To Water the Franchise Buyer Seeds

cfos-see-recession-as-likely-in-25-why-now-is-the-time-to-water-the-franchise-buyer-seeds

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

1851 Agg - McDonald's Sales Decline Expansion Continues - 1851 Franchise

McDonald’s Franchisees Feel the Pressure as Sales Decline and Expansion Continues

mcdonalds-franchisees-feel-the-pressure-as-sales-decline-and-expansion-continues

Design with hundred dollar bill and orange "recession" banner across the middle

ABC News: Recession Risks Are Rising, Economists Say. Here’s What to Know.

recession-risks-impact-economy-franchise-world

Franchise Deep Dive: Studio Pilates Franchise Costs, Fees, Profit and Data

franchise-deep-dive-studio-pilates-franchise-costs-fees-profit-and-data

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

The Top Quick Service Restaurant Franchises for 2025

the-top-quick-service-restaurant-franchises

Top 25 Emerging Restaurant Franchises - 1851 Franchise

Top 25 Emerging Restaurant Concepts to Consider in 2025

top-emerging-restaurant-concepts-to-consider

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

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

MORE STORIES LIKE THIS