From the Front of the Drive-Thru Line:
What’s going on in the labor market?
Does This Sound Familiar?
“Sorry boss, I can’t make it in today. My cousin’s uncle’s ferret ate some chocolate, so I need to be home today for emotional support.”\
“You’re only paying $15/hr? I don’t think I can take this job.”
“Every time I walk into a store, it seems like there are more ‘Help Wanted’ signs than actual employees.”
“Yeah, I posted that job 3 weeks ago on two different job boards, and we still only have one applicant
2024’s labor market is a real labyrinth. Let’s untangle it together.
The World is Changing
Since 2020, the labor market has gone through some drastic shifts. We could hypothesize reasons all day, from economic/ monetary policy, a “sense of entitlement from the youth”, a growing gig economy offering more flexible options, or changes in our culture as a result of social media. Regardless of your views, there’s one fact that pretty much all quick service restaurant franchisees would agree on, it’s harder to get talent for a good price.
Minimum Wage in Fast Food
Ten years ago, fast food jobs were practically synonymous with minimum wage of $7.25 an hour. Many states have since adopted a higher minimum wage, up to $15.00/hour, or in the case of California, mandating pay of $20/hour. In the case that fast food was still a minimum wage job, the price of labor in the most conservative case has more than doubled over the last decade, and shows no sign of stopping.
However, as per a bureau of labor statistics data dump from April of 2024, more than 90% of “Fast Food and Counter Worker” employees are paid more than their local minimum wage. This comes as a result of the aforementioned cultural movement of “Quiet Quitting,” labor recognizing their place in the value chain, and inflation that makes minimum wage labor less than can support even a single individual, meaning it’s economically almost just as good to be unemployed as employed at minimum wage.
As a franchise owner, the biggest threat to your labor cost is no longer governmental regulation around minimum wage, but social and cultural standards that command a premium for “unfulfilling” labor.
If I pay them, who will come?
While jobs offered at quick service restaurants are generally fairly low skill, there are certain expectations and standards that employees still need to meet. Over the last two years, many owners report that these standards are no longer being met. Between an increase in “no-call no-shows,” sudden quitting, and attitudes that result in poor customer service, it is clear that many of those that are attracted to the new higher wages in fast food are not providing adequate support.
Automation has opened new opportunities for low-skill workers willing to upskill. Training programs for operating sophisticated machinery or managing automated systems have become more accessible, marking a shift towards a more skilled labor force even within traditionally low-skill sectors. Coupled with an increase in value of tradework, fast food’s best talent pool is shrinking quickly.
This results in longer recruiting cycles, more demanding interview criteria, and faster turnover, driving a ton of cost for the business.
So What Can We Do About It?
With these factors shifting the labor market so aggressively against your average quick service restaurant, there must be a solution.
While technology has given gig work new legs, making hiring more challenging, it poses the biggest solution as well – automation.
QuickByte gives you the magic bullet to solve many of these problems. Our automated drive-thru solution allows you to maintain a leaner staff, meaning less time spent hiring, less cost, and fewer headaches from employees quitting suddenly. If you’re interested in future-proofing your restaurant from these challenges, get in touch with our team today to see how we can help you!
