|
Kempczinski also noted that in many states, sit-down restaurants
are allowed to pay servers as little as $2.13 per hour, a
federal minimum set in 1991, with tips making up the rest of
their pay.
“So right now, there’s an uneven playing field. If you are a
restaurant that allows tips or has tips as part of your
equation, you’re essentially getting the customer to pay for
your labor and you’re getting an extra benefit from no taxes on
tips,” Kempczinski said.
Seven states – including California, Nevada and Minnesota –
require restaurants to pay their servers a minimum wage before
tips are added. Kempczinski said that policy helps lower poverty
levels and employee turnover.
“We just need to do that, I think, across all 50 states. And
we’ve said repeatedly, we’re open to conversations on raising
the federal minimum wage,” Kempczinski said.
Kempczinski was promoting McDonald's new Extra Value Meals,
which offer discounted prices for an entree, side and drink.
Kempczinski said the company is trying to appeal to lower- and
middle-income customers who have cut back on their visits as
fast food prices have risen.
As the average price of a combo meal has crept above $10 across
the U.S., McDonald's and other fast food chains are competing
more directly with sit-down chains. Chili's, for example,
currently offers an entree, drink and appetizer for $10.99.
But Kempczinski implied that sit-down restaurants can offer
deals like that in part because many pay their servers a
sub-minimum wage.
McDonald’s feels so strongly about the issue that it is no
longer a member of the National Restaurant Association, an
industry trade group that represents more than 500,000
restaurants and bars. The association confirmed Friday that
McDonald’s has stepped away from the group “due to a policy
difference.”
“The Association remains committed to representing the full
spectrum of the restaurant industry and continues to advocate
for policies that support sustainable growth and workforce
development,” the association said.
McDonald's shares fell less than 1% Friday.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
