1851

A worker shortage is causing restaurants to get creative in hiring as they struggle to find enough workers to meet growing demand. This shortage is impacting part-time and full-time positions as restaurants are fighting to hire kitchen, wait and front-of-house staff. As of March 2021, the U.S. restaurant industry was about <a href="https://1851franchise.com/this-week-in-franchise-news-492021-2715464">1.2 million workers</a> down from March 2020.Many <a href="https://nypost.com/2021/04/16/worker-shortage-further-hurting-nyc-restaurants/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519" target="_blank" rel="nofollow">restaurant owners are blaming</a> government assistance programs for people’s lack of incentive to re-enter the workforce. In New York City, for example, individuals can collect up to <a href="https://nypost.com/2021/04/14/businesses-are-struggling-to-hire-workers-and-say-uncle-sam-is-to-blame/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519" target="_blank" rel="nofollow">$804 per week on unemployment</a> ($300 in Federal Pandemic Unemployment Compensation and $504 in state benefits), which is about $20 an hour. In a state with a $15 per hour minimum wage, it makes it difficult for businesses to compete.“It’s as bad as I’ve ever seen in my 17 years in New York,” Bernard Collin, partner in New York City’s Upper East Side’s Orsay, La Goulue and <a href="https://www.restaurantji.com/ny/new-york/bar-italia-/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519" target="_blank" rel="nofollow">Bar Italia</a> restaurants told the <a href="https://nypost.com/2021/04/16/worker-shortage-further-hurting-nyc-restaurants/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519" target="_blank" rel="nofollow">New York Post</a>.As a result, many restaurants are getting creative with incentivizing new applicants. Fazoli’s, a 200-unit Italian restaurant chain in the Midwest, <a href="https://ownafazolis.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519" target="_blank" rel="nofollow">increased its minimum pay by 8%</a> to attract workers. Taco Bell is upping their benefits for general managers to <a href="https://www.businessinsider.com/fast-food-struggles-to-hire-as-demand-soars-us-economy-roars-2021-4?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519" target="_blank" rel="nofollow">4 weeks of paid vacation</a> and 8 weeks of paid maternity leave. A McDonald’s franchisee is offering <a href="https://www.businessinsider.com/mcdonalds-pays-50-for-job-interviews-highlighting-hiring-struggles-2021-4?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519#:~:text=A%20Florida%20McDonald's%20is%20paying,still%20struggling%20to%20find%20applicants&amp;text=One%20McDonald's%20in%20Florida%20is,are%20%22scrambling%20for%20help.%22" target="_blank" rel="nofollow">$50 just to interview</a>.The <a href="https://1851franchise.com/fast-food-franchises-face-nightmare-worker-shortage-2715431#home">worker shortage couldn’t come at a worse time</a> for many operators as business is returning at a rapid pace due to stimulus checks, vaccines and loosening of regulations nationwide.&nbsp;Blake Casper, owner of the McDonald’s franchise location offering $50 interviews, told Business Insider, “It's a perfect storm right now. You've got a lot of people with a lot of money, and they're out there shopping. And then, on the flip side, we're scrambling for help."&nbsp;As the economy re-opens, restaurants nationwide are seeing an <a href="https://www.nasdaq.com/articles/restaurant-sales-jump-yoy-in-march%3A-5-solid-stocks-to-buy-2021-04-19?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519" target="_blank" rel="nofollow">increase in demand</a>, and demand for workers is increasing right along with it. Last week, McDonald’s held an event to <a href="https://www.cnbc.com/2021/04/14/restaurants-see-diners-return-but-feel-a-labor-crunch-.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis-2715519" target="_blank" rel="nofollow">hire 25,000 people</a> in Texas alone. IHOP is looking to hire 10,000 people nationwide, and Taco Bell’s parent company Yum Brands is looking to hire 5,000 over the coming weeks.

Franchises Paying Workers Just To Interview Amid Worker Shortage Crisis

1851 Franchise

Worker shortage leaves the restaurant industry down 1.2 million workers compared to March 2020. 

franchises-paying-workers-just-to-interview-amid-worker-shortage-crisis

TruBlue Home Service Ally

TruBlue Home Service Ally Celebrates Major Milestone With Opening of Its 100th Franchise Location

trublue-home-service-ally-celebrates-major-milestone-with-opening-of-its-100th-franchise-location

Children's Lighthouse

Children’s Lighthouse Named Among the Top Franchises in Entrepreneur Franchise 500® Ranking

Children’s Lighthouse Named Among the Top Franchises in Entrepreneur Magazine’s Franchise 500® Ranking

childrens-lighthouse-named-among-the-top-franchises-in-entrepreneur-magazines-franchise-500-ranking

Layne's Chicken Fingers

Four Layne's team members stand in front of a wall decorated with artwork from the community

The Easiest $10,000 Made in a Day: How Layne’s Built Operations for Volume

the-easiest-10000-made-in-a-day-how-laynes-built-operations-for-volume

Pet Wants

Why Pet Wants Is Perfect for First-Time Franchise Owners

why-pet-wants-is-perfect-for-first-time-franchise-owners

Griswold

7 Winter Safety Tips for Seniors: Staying Safe During National Winter Safety Month

7-winter-safety-tips-for-seniors-staying-safe-during-national-winter-safety-month

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

Login

facebook

instagram

twitter

linkedin

youtube

Yum Brands - KFC - Pizza Hut - Terminates Franchise Agreements in Turkey - 1851 Franchise

Yum! Brands Terminates Franchise Agreements in Turkey Due to Non-Compliance

yum-brands-terminates-franchise-agreements-in-turkey-due-to-non-compliance

Recent Franchise News - Why Franchisors Churn Through Marketing Suppliers - 1851 Franchise

Forbes: Four Reasons Why Franchisors Churn Through Marketing Suppliers

forbes-four-reasons-why-franchisors-churn-through-marketing-suppliers

QSR Magazine: Big Chicken Targets Global Expansion

qsr-magazine-big-chicken-aims-for-global-growth

Starbucks Strike Brews Opportunity for the Next Coffee Franchisee

starbucks-strike-brews-opportunity-for-coffee-franchise-hopefuls

I Heart Mac and Cheese - Franchisees Sue I Heart Mac and Cheese - Franchise News - 1851 Franchise

Restaurant Business Online: Franchisees Sue I Heart Mac and Cheese

restaurant-business-online-franchisees-sue-i-heart-mac-and-cheese

Two Attorneys, Restaurant Professionals To Serve Germantown Community With New Paris Baguette Café

two-attorneys-restaurant-professionals-to-serve-germantown-community-with-new-paris-baguette-cafe

Top 10 Franchises for New Year’s Resolutions

Top 10 Franchise Opportunities for New Year’s Resolutions

top-10-franchises-for-new-years-resolutions

Leveraging Technology in Franchise Management

How to Leverage Technology in Franchise Management

leveraging-technology-in-franchise-management

The Best Franchises To Own With Low Initial Investments

best-franchises-with-low-initial-investments

Newk's Eatery - Magee, MS - Skip Russell Franchisee Profile - CI

Former Popeyes Franchisee Builds on Decades of Success with Newk's Expansion Plans

former-popeyes-franchisee-builds-on-decades-of-success-with-newks-expansion-plans

Franchises Paying Workers Just To Interview Amid Worker Shortage Crisis

MORE STORIES LIKE THIS