Waffle House is raising wages for its American employees after a years-long battle with the US government labor advocates.
Of course, someone has to pay for it – and it won’t be the company itself. Bosses have already warned that customers will pay for it with higher menu prices – and these increases will be higher in some areas.
“We have to increase menu prices to pay for it [the pay rises]and in some places we have more options and in others we have fewer options,” Waffle House CEO Joe Rogers III said in a video message to employees late last month.
He said restaurants in city and downtown areas are likely to see larger increases than those in suburban areas – due to lower costs of rent and labor.
But there is comfort for customers. Rogers said in the video that higher menu prices will bring better service. cleaner restaurants and larger portions.
Waffle House prices are expected to rise to cover the pay increase for staff
Chris Rock (right) is a fan of Waffle House, which raises prices
“Ultimately, we must prepare for the expectations that come with both rising wages and rising prices,” Rogers said.
You better believe that our customers are going to expect more when they pay more, and we don’t want to hurt the reality of your tips either.”
Rogers said the base wage would increase to at least $3 per hour in June and then gradually increase to at least $5.25 per hour by June 2026.
Rogers pointed out that base pay does not include employee tips and will be higher in some states depending on the situation minimum wage laws.
Such a low base salary is common in restaurants in states where staff are tipped, which can significantly increase revenues.
If price increases have to be paid for, they will be greater in urban markets than in rural markets. In light of that, Rogers added that wage increases will be implemented more quickly in urban areas.
So that means those who eat in Atlanta will pay more than someone in a small town elsewhere in Georgia.
Waffle House has approximately 2,100 restaurants across 25 states, primarily in the Southern states, and a few in the Midwest.
The company is also adding permanent hire bonuses and incentives for working later shifts.
Waffle House would not confirm the pay increase Tuesday when contacted by The Associated Press.
The Union of Southern Service Workers, a union affiliated with the Service Employees International Union, provided AP with a link to the video.
Over the past year, the Union of Southern Service Workers has staged strikes at Waffle House locations as it made a number of demands.
Waffle House prices will rise, the company’s CEO said
These include higher wages, 24-hour security at restaurants and an end to the company’s practice of deducting $3.15 a day from employees’ paychecks for meals, regardless of whether they eat on the job.
The group has also asked the Department of Labor to review the meal deduction.
“The pay increases show that the company is struggling,” said Katie Giede, a Waffle House server in Atlanta who wants wages raised to $25 an hour.
“We’ll keep organizing and keep fighting until we win.”
Waffle House has 2,000 restaurant locations across the US, primarily in… South And Midwest. The company is headquartered in Norcross, Georgia.