Posted on 11/14/2021 8:38:02 PM PST by Cronos
Florida chain Pollo Tropical says boosting pay and benefits helped it get to normal staffing levels in the labor shortage.
The Caribbean-food chain is raising prices by up to 6% in December to fund higher labor costs.
Sales were considerably higher in its restaurants that were well-staffed, its CEO said.
Pollo Tropical, a Caribbean-food chain with 169 restaurants in Florida, says it's almost back to normal staffing levels after boosting pay, improving benefits, and giving sign-on bonuses to new staff.
This is despite the huge labor shortage affecting the industry: Restaurants across the US are struggling to find staff amid the current labor shortage as workers leave the industry citing low pay, poor benefits, and lack of flexible working hours.
...the company had increased wages to "at least market benchmarks," without giving specifics.
...had also offered hiring incentives and improved its benefits package by adding childcare leave, company-paid educational programs, and more affordable medical plans.
...restaurant wages made up 28% of Pollo Tropical's cost of sales in the third quarter, up from 23.3% during the same quarter last year.
...Pollo Tropical put its prices up by 3.7% in August,
...sales were considerably higher in its restaurants that were well-staffed, 4.3% vs 0.9%
(Excerpt) Read more at businessinsider.com ...
The better restaurants here in St Augustine have raised prices significantly over last year. But there is no observable drop off in customers. We still have to wait for a table at my #1 favorite restaurant, Sunset Grille.
Improving compensation IS generally how a company attracts staff. It remains to be seen, though, whether the increased prices will be sustainable in the long run.
Golly, an employer discovers that labor responds to incentives, meaning that higher pay and benefits resolves a labor shortage. Who knew, that markets work! And that customers like better service and respond by increasing their patronage.
What a radical concept: make it so that people WANT to work with your company, and you don’t have staffing problems.
Who’dathunkit?
Who would have thunk money and benefits were a solution, tell me it ain’t so!
Never figure out peoples’ addiction to going to restaurants
If you’ve cooked meals three times a day for 50+ years, going to a restaurant isn’t an addiction; it’s a respite.
And being able to have food you like that you absolutely cannot cook is a treat. We like Chinese food, but no matter how I try my Chinese items are disgusting.
Yes, /sarc
And, to add to the oddity of the story, it happens in Florida!
“The Caribbean-food chain is raising prices by up to 6% in December to fund higher labor costs.”
Being a near-Keto eater, I was buying Double Quarter Pounders with Cheese for about $6.75 (including tax) and throwing away the buns, from McDonald’s (just don’t tell anyone that I eat their food). I finally got sick of paying that much, so I priced out making my own, including everything down to dish soap to wash my cookware/plates. Came out to right around $2.00. All done with McDonald’s, at least when I can easy cook the same food.
For a long time the McDonald’s app was giving us BOGOs for double-cheeseburgers. We’re low carb, so we’d feed the bottom bun to the birds and make a McQuad with the rest. For $1.99 it was worth it.
Funny how that works.
People obviously don’t like to cook and clean. Besides most can’t cook as good as some good restaurants. I know I can never cook shrimp like I those large grilled blackened shrimp at Sunset Grille. They are done just right, with amazing side dish of loaded fries and perfectly seasoned collared greens.
Hahahaha thanks for posting it!!
Yes, that place is good!
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