A wage shake-up is going on under the Golden Arches down south.
McDonald’s (NYSE:MCD) is raising the hourly wages for its U.S. company-owned restaurants as the fast-food chain looks to hire 10,000 workers for those locations.
The broader restaurant industry is facing a labor crunch. Fewer people are returning to the workforce than expected, and eateries are trying to meet consumer demand as it comes roaring back.
The hiring announcements that usually arrive in the spring and summer months have been accompanied this year by news of wage hikes, referral and retention bonuses and other enhanced benefits. Chipotle Mexican Grill (NYSE:CMG) , for example, said that its average wage per hour would be $15 by the end of June.
Workers at McDonald’s company-owned locations will see pay hikes of an average of 10% over the next several months. Entry-level employees will be making $11 to $17 per hour, and shift managers will make $15 to $20 an hour based on location.
Based on the current labour market, McDonald’s expects that the average wage for employees of its company-owned restaurants will be $15 per hour by 2024.
However, these increases will not directly impact workers who are employed by restaurants owned by McDonald’s franchisees. The fast-food giant franchises 95% of its U.S. restaurant footprint.
MCD shares added 65 cents to $228.59.