- Shake Shack has rolled out a four-day workweek for managers at a third of its locations, CEO Randy Garutti said on Tuesday.
- “It’s never been harder” to attract, retain, and find high-quality employees, Garutti said.
- The CEOs of TGI Fridays and Darden Restaurants, the parent company of Olive Garden and Longhorn Steakhouse, also cited labour as a top challenge in 2020.
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ORLANDO, Florida – Shake Shack is using a four-day workweek to win over managers as restaurant chains battle for employees.
During a presentation here on Tuesday at the ICR Conference, Shake Shack CEO Randy Garutti said the chain has rolled out a four-day workweek for managers at a third of its locations.
“It’s never been harder” to attract, retain, and find high-quality employees, Garutti said. According to Garutti, the four-day workweek has been an “incredible competitive advantage.”
In November, Garutti said on a call with investors that the chain was looking to expand the four-day workweek to more locations. On Tuesday, Garutti said that the company was not yet sure if it would roll out the four-day workweek at all locations.
Shake Shack is not the only restaurant chain testing out new ways to hire and retain talent. Taco Bell recently announced it would test a $US100,000 salary for the general managers of certain company-owned locations later this year. Starbucks has been rolling out new mental-health benefits for all employees, including a subscription to the meditation app Headspace.
CEOs of TGI Fridays and Darden Restaurants, the parent company of Olive Garden and Longhorn Steakhouse, also cited labour as a top challenge in 2020 during presentations and conversations at the ICR Conference. As certain restaurants add new benefits and boost wages, other chains will be forced to follow in their footsteps to compete.
“It’s a domino effect,” Bart Shuldman, CEO of back-of-house automation service BOHA by TransAct, told Business Insider on Monday.
“The restaurant next door is going to say, well, my people want to go work there because they’re going to get $US50,000 a year in wages,” Shuldman added. “It’s the beginning. It’s going to be the story of 2020 and 2021.”