Retail Stores And Restaurants In The US Are Finally Starting To Raise Wages And People Like It

Retail and restaurant workers are in a stronger position than they have been in years, and companies are finally feeling the pressure. As businesses reopen and customer traffic picks up, many employers are struggling to fill shifts, which has pushed wages higher across the industry.

That shift is showing up at major names like McDonald's, Amazon, and Chipotle, all of which have announced pay increases and extra perks to attract applicants. For workers, it looks like long-overdue progress, but it also raises an awkward question about why these companies could afford it all along.

The backlash, the praise, and the pay bumps are all part of the same story. DerenicByrd

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The search for suitable employees has become a real headache for many companies in the retail and food and beverage sector, as the job market is troubled by increased customer flow and a workforce shortage.

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When you think about companies like McDonald's and Amazon, high wages are not the first thing that comes to mind. However, that is changing because they are increasing their wages to combat the competition.

For instance, McDonald's reported that it would increase wages "by an average of 10%" for more than 36,500 employees. Entry-level jobs will now be paid $11-$17 an hour. With this increase, shift managers can expect between $15 and $20 an hour.

That kind of pay bump is hard to ignore.

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Amazon has announced plans to hire 75,000 employees for the US and Canada. It is now offering an average starting wage of $17 per hour, and it will give $100 to any employee who shows a COVID-19 vaccination card.

Chipotle is also raising its average hourly wage to $15. It also offers additional perks like employee referral bonuses of $200 for restaurant workers and $750 for managers.

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Josh Bivens from the Economic Policy Institute told AP News that “Customers are coming back faster than restaurants can staff up. By raising pay, they are able to get more workers in the door.”

People online had plenty to say about the wage increases.

This is similar to roommates arguing over splitting rent unequally based on who earned more.

And here is what people think about these wage increases:

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Still think the pay should be “fair,” after reading about the cook who demanded equal pay for family dinners?