The New York based QSR, Shake Shack, has begun increasing wages to stay ahead of impending labor increases. All four of its Washington D.C. locations will begin paying their employees $12 an hour. Many quick service chains have increased wages to absorb rising costs in various cities.
CFO Jeff Uttz, regarded the rise as an investment in the development of their employees.
“Taking Care of out team members first will always drive our decision making”
Founded and housing most of Shake Shacks locations, New York city’s mandate will force the QSR to increase minimum wage to $15 an hour. Although, the better burger chains expects it should be able incorporate higher labor cost effectively.
Despite raising menu prices last September and January customers have been flocking to a shack nearest them for a taste of these delicious burgers.
Shack is not the first to begin increasing wages. The reigning king of coffee shops, Starbucks, and McDonald’s have started to face approaching changes in the industry.
The first increases will begin in December 2015.
Minimum wage has increased in large cities, including Seattle, Los Angeles, and San Francisco. Washington D.C. is expected to vote next year on a similar bill.
Executives at all the major food chains have spoken out against wage hikes due to impact it will have on the restaurant and retail industries that employ large amounts of minimum wage workers.
Despite changes in the industry, Shake Shack is still set for steady growth. Its expectation of ten new locations for this current year will be surpassed.
Globally, Shake Shack has three locations in Moscow, two in the U.K., and one set to open in Japan.
Currently, there are locations in Texas, Chicago, and New Jersey, with Los Angeles and Arizona stores to open soon.
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