Texas Chicken chain pays teen managers $50K amid labor shortage

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A Texas-based chain of hen eating places is reportedly selling teenagers to general-manager positions that pay greater than $50,000 a year in a bid to maintain expertise amid the current labor shortage.

Garrett Reed, the CEO of Layne’s Chicken Fingers, advised The Wall Street Journal that he’s needed to practice staff of their late teenagers and early 20s to run his new shops as a result of he can’t discover or afford staff with extra expertise. The company runs six eating places throughout The Lone Star State.

“We’re so thin at leadership that we can’t stretch anymore to open more locations,” he advised the Journal. “I’ve got a good crop of 16- and 17-year-olds, but I need another year or two to get them seasoned to run stores.”

Reed famous that Layne’s had lost some staff to bigger employers reminiscent of Walmart and McDonald’s.

“We’re so thin at leadership that we can’t stretch anymore to open more locations,” Garrett Reed, the CEO of Layne’s Chicken Fingers, advised the Journal. “I’ve got a good crop of 16- and 17-year-olds, but I need another year or two to get them seasoned to run stores.”
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Reed added that he has offers to lease 4 extra places within the Dallas space for eating places, however he’s holding off on signing as a result of he’s anxious about staffing.
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He added that he has offers to lease 4 extra places within the Dallas space for eating places, however he’s holding off on signing as a result of he’s anxious about staffing.

“The biggest challenge for small companies to grow right now is your labor force,” Reed advised the Journal. “We’d be growing at twice the rate if we had more people.”

“There’s only so much I can pay and remain profitable without raising prices too much,” he added mentioned.

Layne’s didn’t return The Post’s request for remark.

Businesses throughout numerous industries have bemoaned a nationwide labor shortage that economists say is brought on by quite a lot of components, together with child-care issues, concern of catching COVID-19 and federal unemployment advantages that dole out an additional $300 per week.

The employee shortage implies that some companies are caught unable to develop or ramp up operations so as to meet the calls for of consumers, just lately emerged from the pandemic and able to spend.

To attempt to recruit new staff, nationwide chains like McDonald’s and Chipotle have gotten extra versatile the place potential and boosting wages.
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The labor crunch comes whilst greater than 3.5 million Americans stay on conventional state unemployment and as job openings nationwide hit a record-high of 9.3 million in April.

And weekly new jobless claims stunned economists final week by rising, shattering six straight weeks of declines.

Some economists have expressed hope that the labor market will tighten as soon as the federal unemployment advantages program is ended. President Joe Biden confirmed earlier this month that this system will stop in September.

In the meantime, to attempt to recruit new staff, nationwide chains like McDonald’s and Chipotle have gotten extra versatile the place potential and boosting wages.

But with wages rising and provide prices additionally surging, some companies at the moment are passing these additional prices on to prospects, sending the costs of meals and different items up.

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