Taco Bell Is Offering Managers Six Figures to Combat Employee Turnover

It is no secret that the QSR and fast casual segment have been dealing with an overall labor shortage. Lately, many QSR concepts have become particularly concerned about retaining general managers as of late, especially as the labor market continues to shrink. 

Taco Bell is the latest of fast food chains focusing on general manager retention, with a bold new plan to test a $100,000 annual salary for restaurant managers at company-owned stores in select locations later this year. Currently, Taco Bell's average salaries for general managers at its company-owned locations range from $50,000 to $80,000.

In 2012, Taco Bell noted that regional general manager turnover related to poor store performance as part of a study into why turnover rates were starting to rise. Additionally, the company found that turnover jumped when engagement scores fell when stress increased and there was inadequate training. 

Shake Shack is another concept creating bold new retention strategies, including equity awards of $10,000 and testing a four-day workweek for its general managers in an attempt at giving managers an incentive to stay with the brand. Papa John's is offering to cover tuition costs for corporate employees pursuing degrees online through Purdue University College. Last year, Chick-fil-A dished out $14.65 million in scholarships to more than 5,700 team members as part of the franchise's "Remarkable Futures" education initiative. Chipotle has also been increasing its incentives to include mental healthcare benefits.

As more franchisors boost their benefits, it's likely that others will follow suit to remain competitive. Whether its higher salaries, paid sick leave, or educational scholarships, QSR concepts are obviously doing everything they can to retain their most valuable asset—store employees.