{"id":945118,"date":"2021-10-31T10:59:16","date_gmt":"2021-10-31T14:59:16","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=945118"},"modified":"2021-10-31T10:59:19","modified_gmt":"2021-10-31T14:59:19","slug":"major-restaurant-chains-hike-prices-due-to-worker-shortages","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/major-restaurant-chains-hike-prices-due-to-worker-shortages\/","title":{"rendered":"Major Restaurant Chains Hike Prices Due To Worker Shortages"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmajor-restaurant-chains-hike-prices-due-to-worker-shortages%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=945118&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>As the American labor market remains tight, major restaurant chains identify staffing challenges as a threat to their businesses.<\/p>\n<p>The United States economy currently has 2.8 million more available jobs than workers <a href=\"https:\/\/www.dailywire.com\/news\/top-hedge-fund-ceo-calls-for-fed-to-hit-brakes-on-inflation\">willing<\/a> to take them \u2014 a reality that permits workers to be choosy with the positions that they accept.<\/p>\n<p>As <a href=\"https:\/\/www.cnbc.com\/2021\/10\/30\/higher-restaurant-wages-whack-profitssome-warn-more-pain-is-still-ahead.html\">CNBC<\/a> summarized, the chief executives of major restaurant chains noted the state of the labor market in recent earnings calls:<\/p>\n<p>Restaurant executives have painted a bleak picture of staffing challenges to investors on their earnings calls in the last two weeks. CEOs like Domino\u2019s Pizza\u2019s Ritch Allison, Chipotle Mexican Grill\u2019s Brian Niccol and McDonald\u2019s Chris Kempczinski shared details on how eateries have shortened hours, restricted ordering methods and lost out on sales because they can\u2019t find enough workers. Some chains have been hit harder by the labor crunch, like Restaurant Brands International\u2019s Popeyes, which saw about 40% of its dining rooms closed due to understaffing.<\/p>\n<p>As a result, firms have resorted to raising prices for customers and boosting wages to attract workers:<\/p>\n<p>Raising wages is one popular approach to staffing problems, although it isn\u2019t a perfect solution. McDonald\u2019s wages at its franchised restaurants have risen roughly 10% so far this year as part of an effort to attract workers. Higher labor costs have led to increased menu prices, which are up about 6% from a year ago, according to McDonald\u2019s executives.<\/p>\n<p>Starbucks plans to spend roughly $1 billion in fiscal 2021 and 2022 on improving benefits for its baristas, including two planned wage hikes. The decision reduced its earnings forecast for fiscal 2022, disappointing investors and shaving off $8 billion in market cap.<\/p>\n<p><a href=\"https:\/\/www.dailywire.com\/news\/mcdonalds-partners-with-ibm-to-automate-drive-thrus-as-labor-shortages-persist\">The Daily Wire<\/a> previously reported that McDonald\u2019s is partnering with IBM to automate drive-thrus; as early as June, executives foresee the technology appearing across the United States.<\/p>\n<p>\u201cThere is a big leap between going from 10 restaurants in Chicago to 14,000 restaurants across the U.S. with an infinite number of promo permutations, menu permutations, dialect permutations, weather \u2014 I mean, on and on and on and on,\u201d said McDonald\u2019s CEO Chris Kempczinski. \u201cDo I think in five years from now you\u2019re going to see a voice in the drive-thru? I do, but I don\u2019t think that this is going to be something that happens in the next year or so.\u201d<\/p>\n<p>Nearly one-fifth of economists recently <a href=\"https:\/\/www.dailywire.com\/news\/survey-economists-foresee-high-inflation-supply-chain-crisis-labor-shortages-lasting-well-into-2022\">surveyed<\/a> by The Wall Street Journal identified labor shortages as the primary threat to economic growth. Other economists mentioned<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the American labor market remains tight, major restaurant chains identify staffing challenges as a threat to their businesses.The United States economy currently has 2.8 million more available jobs than workers willing to take them \u2014 a reality that permits workers to be choosy with the positions that they accept.As CNBC summarized, the chief executives of major restaurant chains noted the state of the labor market in recent earnings calls:Restaurant executives have painted a bleak picture of staffing challenges to investors on their earnings calls in the last two weeks. CEOs like Domino\u2019s Pizza\u2019s Ritch Allison, Chipotle Mexican Grill\u2019s Brian Niccol and McDonald\u2019s Chris Kempczinski shared details on how eateries have shortened hours, restricted ordering methods and lost out on sales because they can\u2019t find enough workers. Some chains have been hit harder by the labor crunch, like Restaurant Brands International\u2019s Popeyes, which saw about 40% of its dining rooms closed due to understaffing.As a result, firms have resorted to raising prices for customers and boosting wages to attract workers:Raising wages is one popular approach to staffing problems, although it isn\u2019t a perfect solution. McDonald\u2019s wages at its franchised restaurants have risen roughly 10% so far this year as part of an effort to attract workers. Higher labor costs have led to increased menu prices, which are up about 6% from a year ago, according to McDonald\u2019s executives.Starbucks plans to spend roughly $1 billion in fiscal 2021 and 2022 on improving benefits for its baristas, including two planned wage hikes. The decision reduced its earnings forecast for fiscal 2022, disappointing investors and shaving off $8 billion in market cap.The Daily Wire previously reported that McDonald\u2019s is partnering with IBM to automate drive-thrus; as early as June, executives foresee the technology appearing across the United States.\u201cThere is a big leap between going from 10 restaurants in Chicago to 14,000 restaurants across the U.S. with an infinite number of promo permutations, menu permutations, dialect permutations, weather \u2014 I mean, on and on and on and on,\u201d said McDonald\u2019s CEO Chris Kempczinski. \u201cDo I think in five years from now you\u2019re going to see a voice in the drive-thru? I do, but I don\u2019t think that this is going to be something that happens in the next year or so.\u201dNearly one-fifth of economists recently surveyed by The Wall Street Journal identified labor shortages as the primary threat to economic growth. Other economists mentioned pervasive supply chain bottlenecks limiting access to many consumer goods.The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-945118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/945118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=945118"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/945118\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=945118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=945118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=945118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}