Starting Dec. 14, baristas, shift supervisors and cafe attendants who were hired before Sept. 24 will receive a pay increase of at least 10%, according to an internal memo obtained by CNBC. Employees who have worked at a company-operated location will receive an increase of at least 11%. And starting wages will be hiked 5% to help cafe managers find more staff.
Documents filed by DoorDash last week as part of its planned initial public offering show the result: The company posted a $23 million profit in the period between April and June. Losses resumed in the third quarter, totaling $43 million. But that fleeting second quarter profit raised the tantalizing question: Can food delivery make money?
The State of California and Many California Localities Are Set to Increase the Minimum Wage on January 1, 2021 – Make Sure You Are Ready
The National Law Review 11/18
California’s stair-step climb to a $15-dollar minimum wage continues. Effective January 1, 2021, the minimum wage for employers with 25 employees or less will increase to $13.00 per hour, and for employers with 26 or more employees, the minimum wage will increase to $14.00 per hour. Employers must remember this increase also affects minimum salary requirements for exempt employees.
An internal National Labor Relations Board memo weighing in on servers’ complaints about tips at a restaurant owned by the social media celebrity chef known as “Salt Bae” showcases the intersection of two worker protection laws, paving the way for attorneys to consider the best remedy for alleged pay violations.
Food Industry Policy
FSR Magazine 11/19
Consumers want restaurant food and creative and innovative approaches will drive them in with great frequency. This is not a time to give up and blame the cold weather or COVID in general. It is a time to reboot and get aggressive.
Bloomberg Quint 11/19
At Chili’s and Maggiano’s, the buzz is about their booming new side hustle—It’s Just Wings. Same at Applebee’s, where its startup, Neighborhood Wings, is doing a brisk business.
The National Restaurant Association estimates that by the end of the year, 100,000 restaurants around the United States will close. The industry as a whole is on track to lose $240 billion in 2020.
On the Side
And now, as 94% of California’s population moves back to the most restrictive COVID-19 guidelines due to a rapid uptick in cases, many people around the state are deciding to scrap previous travel plans to gather with family and stay home with their household for Thanksgiving instead.
CBS Los Angeles 11/17
The National Restaurant Association said more than 100,000 restaurants in the country have closed since the pandemic started. “No industry has lost more jobs or revenue than restaurants, and when you are the nation’s second largest employer, that needs to be a big alarm bell here in Washington for policy makers,” said Sean Kennedy, a the executive vice president for public affairs with the association.
National Restaurant Association 11/17
Today, the National Restaurant Association sent a letter to the National Governors Association (NGA) noting there is no scientific evidence linking restaurants to the increase in COVID-19 cases and urging them to consider policies and regulations that will enable the industry to safely serve their communities for the duration of the pandemic.