Waffle House is raising pay for its American workers after a year-long battle with labor advocates.
Of course, someone has to pay for it, and it won’t be the company itself. Business owners have already warned that customers will pay for it with higher menu prices, and these increases will be greater in some areas.
“We need to raise menu prices to pay for (the wage increases), and we have more capacity to do so in some locations and less capacity in others,” Waffle House CEO Joe Rogers III said in a video message to attendees. employees at the end of last month. .
He said restaurants in urban centers will likely see larger increases than those in suburban areas, due to lower rent and labor costs.
But there is one consolation for customers. Rogers said in the video that higher menu prices will improve service. Cleaner restaurants and larger portions.
Waffle House prices to rise to cover staff pay rise
Chris Rock (right) is a fan of Waffle House, which is raising prices.
“Ultimately, we need to prepare for the kind of expectations that come from both rising wages and rising prices,” Rogers said.
You better believe our customers will wait longer when they pay more, and we don’t want to jeopardize the reality of their 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 noted that the base wage does not include tips for workers and will be higher in some states depending on minimum salary laws.
Such a low base salary is common in restaurants in states where staff receive tips, which can significantly increase revenue.
Regarding the price increases to be paid, these will be greater in urban markets than in rural ones. In light of this, Rogers added that wage increases will be implemented more quickly in urban areas.
That means those eating in Atlanta will pay more than someone in a small town in another part of Georgia.
Waffle House has about 2,100 restaurants in 25 states, mostly in the Southern states, and some in the Midwest.
The company is also adding tenure bonuses and bonuses for working later shifts.
Waffle House did not confirm the pay increase Tuesday when contacted by The Associated Press.
The Southern Service Workers Union, a labor group affiliated with the Service Employees International Union, provided the AP with a link to the video.
Over the past year, the Southern Service Workers Union has gone on strike at Waffle House locations over a series of demands.
Waffle House prices will increase, company CEO said
These included higher wages, 24-hour security at restaurants and an end to the company’s practice of deducting $3.15 a day from workers’ paychecks for meals, regardless of whether they ate while in the restaurant. job.
The group has also asked the Department of Labor to review meal deductions.
“The raises show the company is feeling the pressure,” said Katie Giede, a server at Waffle House in Atlanta who wants wages to rise to $25 an hour.
“We are going to continue organizing and fighting until we win.”
Waffle House has 2,000 restaurants throughout the United States, primarily in the South and Midwest. The company has its corporate headquarters in Norcross, Georgia.