New York City – McDonald’s is the first restaurant chain to announce pay increases in an effort to recruit new employees. The corporation revealed Thursday that it is rising hourly employee wages by around 10% – but only for a limited number of workers.
Employees at the entry-level would benefit between $11 and $17 an hour, the firm said in a statement. Shift supervisors can receive an hourly wage of at least $15 to $20. The corporation has been incorporating the raises and will continue to do so in the coming months. By 2024, the firm expects average hourly pay at restaurants to hit $15.
The rise would affect about 36,500 workers at McDonald’s (MCD) corporate-owned restaurants, which account for less than 5% of the company’s US locations. The remaining 95% of McDonald’s restaurants in the United States are owned and run by franchisees, who are free to set their own salaries.
Additionally, the movie stops short of the $15 minimum wage advocated for by President Joe Biden, several Democratic members of Congress, and labor leaders.
Staffing has been identified as a significant problem for restaurants across the industry. According to some restaurant owners, work postings that drew in prospective hires in droves in the past are no longer attracting candidates.
Chipotle, for example, announced this week that it is increasing hourly wages to an average of $15 per hour and that certain workers will qualify for a six-figure wage in only a couple of years on the job. The quick casual restaurant chain is looking to recruit 20,000 people until the summer and is even offering a $200 employee referral incentive. Darden Restaurants (DRI), which operates Olive Garden and many other restaurants, reported a pay raise of its own in March.