Shake Shack (SHAK) plans to invest $10 million in its restaurant teams over the next 12 months, the burger chain announced on Wednesday, hiking pay and offering sweeteners at a time when the industry at large faces a major labor shortage.
The New-York based company announced the initiative as a part of its Stand for Something Good mission. It includes more than $9 million dollars in increased hourly wages, a $1,000 dollar hiring bonus offer for managers and extended hiring bonus of $500 for hourly team members that are hired between June 10th to August 31st in select locations nationwide.
“Shake Shack is a people-first company and we’re committed to investing in our teams’ development and providing opportunities for a successful career in the restaurant business," Diane Neville, Shake Shack's chief people officer, told Yahoo Finance in a statement.
Shake Shack, aiming to remain competitive amid a massive labor shortage that's squeezing the leisure and hospitality sector, emphasized that it offers General Managers an "above equity based compensation," with the ability to make more than $115,000 in total compensation.
"Our teams work incredibly hard to provide a great guest experience and we’re proud to recognize and appreciate them with industry-leading pay and career development opportunities,” Neville added.
In an effort to maintain talent, the company also created the Shacksperience "to clearly define and train for the operational skills and proficiencies" needed for each role and level of management at Shake Shack.
In 2020, the company says it invested $6 million dollars in its team members through additional pay and a $250-$400 dollar holiday bonus for all hourly team members. The company also placed a 10% premium pay from the end of April 2020 until last summer for its "front-line" employees.
The restaurant industry is reeling as a surge of post-lockdown indoor dining puts pressure on establishments to keep up with demand. As vaccination rates climb and more Americans dine out, restaurants have been unable to find enough staffers — prompting many to raise pay and offer creative bonuses.
Shares of Shake Shack are up nearly 12 percent so far this year.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com. Check out her latest:
