New York Times: When Amazon Raises Its Minimum Wage, Local Companies Follow Suit

An article discusses the impact of Amazon raising its minimum wage on small businesses, citing the example of MOOYAH Burgers, Fries & Shakes.

Read the original at 1851 Franchise
New York Times: When Amazon Raises Its Minimum Wage, Local Companies Follow Suit

TL;DR

Amazon's minimum wage increase puts pressure on small businesses like MOOYAH Burgers, Fries & Shakes to follow suit, which may lead to hiring fewer people and cutting hours. MOOYAH has over 100 locations in the US and was ranked #38 on Fast Casual's Top 100 Movers and Shakers in 2020.

In an article published by The New York Times, Tony Darden, President of MOOYAH Burgers, Fries & Shakes, explains that while many small businesses will follow suit with Amazon as the giant corporation raises its minimum wage, there will be consequences of that decision. MOOYAH Burgers, Fries & Shakes has over 100 centers either open, under construction or in development in markets across the U.S.and was ranked #38 on Fast Casual’s Top 100 Movers and Shakers in 2020.

“When you have those corporations paying that much, it just puts pressure on the smaller business owners,” said Darden. “At some point, it always comes down to money. And so if there’s an employee who has the ability to make two or three or four or five bucks an hour more at another location, they go directly to the owner or to their manager.”

Darden explains that while small businesses will be increasing hourly wages employers might hire fewer people and cut hours to offset the increase.

MOOYAH Burgers, Fries & Shakes was founded in 2007 in Plano, Texas and now has locations across the globe.

In this story

This story was originally published in 1851 Franchise on March 26, 2021. Burnaze summarizes and links to the original reporting.

Read the full story at 1851 Franchise

Liked this? Get the week's franchise news, explained

  • Sunday 8 AM ET weekly + a monthly deep dive
  • Sections picked for the industries you follow
  • Every claim linked to its source. Free.

Free. We'll ask you to confirm. Unsubscribe anytime.