McDonald’s is raising pay at 650 company-owned stores in the U.S. as part of its push to hire thousands of new workers in a tight labor market.
The fast-food giant is also encouraging its franchisees – which make up 95% of its restaurant base – to boost pay.
McDonald’s follows other chains including Chipotle, which said Monday that it will raise workers’ pay to an average of $15 per hour by the end of June. Darden Restaurants, the owner of Olive Garden and other chains, said it March that it will guarantee workers $12 per hour including tips by 2023.
Amazon, Costco and other big companies have all announced pay raises in recent weeks.
Wages and benefits for U.S. workers have been rising quickly as vaccinations increase and employers try to meet growing demand at restaurants and other businesses. U.S. workers’ total compensation rose 0.9% in the first three months of this year, the largest gain in more than 13 years, according to the Labor Department.