Restaurant industry insiders say the cost of labor is once again a top concern in 2020, as many companies struggle to retain workers and keep up with rising wages.
CEOs of TGI Fridays and Olive Garden’s parent company said that labor-related issues are top challenges in 2020 at the ICR Conference in Orlando, Florida on Monday.
Experts said that chains responding by raising wages — such as Taco Bell testing a $100,000 manager salary — could help create a “domino effect” of higher pay across the industry.
Industry insiders also cautioned that higher wages could result in fewer jobs and hours for workers.
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ORLANDO, FLORIDA — Restaurant industry experts and executives are bracing for labor costs to be a top challenge in 2020 at this year’s ICR Conference in Orlando, Florida.
Concerns about the cost of paying workers have dominated the conference in years past, as chains attempted to cut back on costs by deploying robots and raising menu prices in 2019. This year, industry insiders are predicting that wages will continue to rise, especially as chains attempt to compete with higher-paying rivals.
Last week, Taco Bell announced it would test a $100,000 salary for the general managers of certain company-owned locations later this year. According to Bart Shuldman, CEO of back-of-house automation service BOHA! by TransAct, the six-figure test is going to force Taco Bell’s rivals to consider how to keep up.
“It’s a domino effect,” Shuldman told Business Insider on Monday.
“The restaurant next door is going to say, well, my people want to go work there because they’re going to get $50,000 a year in wages,” Shuldman continued. “It’s …read more
Source:: Business Insider