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Compensation: Pandemic forces restaurant industry to rethink wages, tip creditCompensation: Pandemic forces restaurant industry to rethink wages, tip credit

Despite fewer workers and less hours, labor costs are rising

Nancy Luna, Senior editor, Nation's Restaurant News

September 16, 2020

9 Min Read
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New York City-based Shake Shack paid a 10% premium to roughly 6,000 workers from April to Aug. 19. while other chains took similar approaches to pandemic pay.Shake Shack

This is part of our Workforce package that appeared in the 9/21 issue of Nation's Restaurant News. Read more about the new workerslabor market and diversity and inclusion here.

As restaurants slowly return to dine-in service where they can, thousands of jobs have been restored. But how restaurants view and pay their workforce is evolving. Many chains and independent restaurants have used this time to reset when it comes to labor efficiencies and wages. 

Industry watchers say the pandemic and the Black Lives Matter movement have amplified the ongoing debate about paying restaurant workers a living wage and the inequities between the front and back of house, especially in “tip credit” states.

“I do think wages will be going up whether it’s ...

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About the Author

Nancy Luna

Senior editor, Nation's Restaurant News

Nancy Luna is a senior editor at Nation's Restaurant News and a contributing editor at Supermarket News. She covers the industry's largest and most talked about fast-food brands including McDonald's, Starbucks, Chipotle Mexican Grill, Taco Bell, Pizza Hut, KFC and Subway. She is an award-winning journalist with more than 25 years reporting experience. As a veteran business reporter based in Southern California, Nancy has covered some of the country's most beloved food and retail brands including In-N-Out, Taco Bell, Trader Joe's, Aldi, Whole Foods Market, Target and Costco. Luna is a graduate of Cal State Fullerton. When she's not digging for news on her beat, you can find Nancy regaling her fans about her latest dining adventures on her Fast Food Maven social media channels. Contact [email protected]  or follow her on Twitter at https://twitter.com/fastfoodmaven

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