Burger Chain CEO Says U.S. Labor Shortage May Be Permanent

(Bloomberg) -- The head of a drive-thru restaurant chain in the U.S. says the pool of available workers appears to have shrunk permanently.

A nationwide labor shortage has forced Checkers & Rally’s Restaurants Inc. to plan for shifts that used to have five employees to get by with three, or possible four in the future, according to Chief Executive Officer Frances Allen. The chain has about 850 fast-food restaurants and plans to open 60 new ones this year.

“The labor market has shrunk,” Allen said in an interview. “As leaders we’ve got to actually plan for that shrinkage.”

Automation efforts at Checkers & Rally’s are helping the company respond to labor shortages, she said. For example, voice-ordering technology at drive-thru windows will allow for smaller staff numbers and make jobs less hectic for employees.

Hiring and retention have dogged the relatively low-wage restaurant industry for years, even before the pandemic hit in 2020. Wages for food-service workers have been rising -- increasing to $18.09 on average in December -- but that hasn’t been enough for the industry to attract a stable workforce.

At the same time, restaurants are facing worsening supply-chain issues. It now takes roughly a year for Checkers & Rally’s to get a freezer, which has delayed the opening of new locations. Allen said the company is trying to get ahead of bottlenecks by ordering equipment ahead of time for its franchisees.

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