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Should the fast casual industry follow Taco Bell's $100K-salary lead?

Throwing money at a problem may be a step in the right direction as $100K will buy a brand a seasoned professional, but creating a huge pay gap between managers and staff may ultimately create new perception problems for minimum wage workers unless every aspirational employee believes that they have the ability to reach that level.

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January 16, 2020 by Nancy Shenker

Last week, restaurant trade and broad-reach consumer and business media were filled with the news that Taco Bell is offering $100,000 salaries for qualified managers in select markets. 

With average pay for U.S. fast-food managers ranging from $19K to $45K annually, this announcement was clearly a bold and provocative statement. 

Turnover across the restaurant industry is 82 percent but reported to be as high as 150 percent in the fast-food world. Despite the rise in automation and self-serve kiosks, the hospitality industry still has close to a million jobs to fill. 

Throwing money at a problem may be a step in the right direction as $100K will buy a brand a seasoned professional, perhaps even candidates from outside the industry. As more workers are aging out of corporate careers, some may find managing a fast food restaurant to be a challenging and lucrative opportunity. Long-time employees of chain brands may see the salary as a light at the end of a tunnel and even consider relocating to one of Taco Bell's test markets. 

Changes in sick leave policy, moves toward sustainability practices, scholarships, and four-day workweeks are among some of the other steps fast food brands are taking to attract talent and improve retention. 

Can money buy happiness?

As we know from history and data, money and benefits alone are not enough to attract and retain the best workers. This chart from a 2019 study by 7Shifts illustrates that many other factors feed into employee satisfaction in our industry.

Taco Bell and other brands that are experimenting with massive pay scale increases must also keep a finger on the pulse of their training, policies, and technologies. Creating a huge pay gap between managers and staff may ultimately create new perception problems for minimum wage workers unless every aspirational employee believes that they have the ability to reach that level. 

Brands that  feed employees' bank accounts without simultaneously working on their culture, onboarding, management practices, and communication are just solving one part of a complex problem. 

Just as offering to up-size a customer's meal without focusing on food quality and service does not build brand loyalty, writing a bigger check alone will not result in long-term success. Fast food and fast-casual brands must invest in all aspects of the employee experience if they are to prosper long-term.