Applebee's using gas cost to pay people less.

[SteveH]

I will say I haven't eaten at an Applebee's in probably 12 years - their food quality dropped to the point it was pointless. But having some server with a freaking bolt through his nose and ears was just to me. Never been back.

That said, what Pankratz said is not wrong, it's just not what people want to hear. Many employers in that market for employees are really pinched; food prices up, employee costs through the roof as well as reduced foot traffic. As Pankratz pointed out, once the free money dried up people slowly started coming back, but many are riding the wave for a while longer still. While not his greatest mistake, putting that in an email was the dumbest thing you can do. I'm not sure this will be the death knell for Applebee's, but if it is then we really haven't lost much on the American food scene.

 

[Sinder]

They aren’t “cutting” wages of existing employees, from what I can tell. Just hiring new employees at lower wages. My question is, since most of their employees probably already make minimum wage, how can they really pay less?

The Applebees here pays more than minimum wage. My ds was looking yesterday for a host or server position and no restaurant here pays only minimum wage. I’m sure there are places that do but it’s not that way across the board.
I think the point is that places have had to raise the starting salary to entice workers to apply. Now that gas prices have gotten higher people may be more desperate for a job, therefore places may not have to offer a higher starting salary to entice them to work there.

 

[LuvOrlando]

Agree -- no "Woe is me" from the employer.

Did you like my pun? I thought it was clever, maybe it didn't land

 

[gopher101]

I will say I haven't eaten at an Applebee's in probably 12 years - their food quality dropped to the point it was pointless. But having some server with a freaking bolt through his nose and ears was just to me. Never been back.

That said, what Pankratz said is not wrong, it's just not what people want to hear. Many employers in that market for employees are really pinched; food prices up, employee costs through the roof as well as reduced foot traffic. As Pankratz pointed out, once the free money dried up people slowly started coming back, but many are riding the wave for a while longer still. While not his greatest mistake, putting that in an email was the dumbest thing you can do. I'm not sure this will be the death knell for Applebee's, but if it is then we really haven't lost much on the American food scene.

I don't think it will be applebee's death knell, but hopefully it will put pressure on them not to lower wages.

 

[Uncle Coaster]

I like Applebees. It’s far from my favorite but I think it’s good enough to enjoy. That email does nothing to sway my opinion or change my habits. I will continue to eat there.

 

[luvnwdwgal]

Applebee’s has horrible food.

 

[undertheradar]

Applebee's email leak
I cannot believe the nerve of the Wayne Pankratz. I will never eat at an Applebee's again. What a jerk, knowing people are struggling are what you pay, knowing you get will get a few more applicants, and use that to pay your people less.

You are aware that this email is supposedly from a franchisee employee, not from the parent corporation of Applebee's? Where exactly is St. Lawrence, Kansas? There is a Lawrence, Kansas, never heard of St. Lawrence, Kansas.

 

[gopher101]

You are aware that this email is supposedly from a franchisee employee, not from the parent corporation of Applebee's? Where exactly is St. Lawrence, Kansas? There is a Lawrence, Kansas, never heard of St. Lawrence, Kansas.

He owns 50 franchises in Kansas. So not an employee.
Edit. Sorry he is not the franchise owner, an high ranking executive of the franchise company

 

[gopher101]

Update. Applebee's has place the franchise owner on leave.

 

[Kennywood]

Update. Applebee's has place the franchise owner on leave.

My guess is it's not because of what he said, but rather the fact that he got caught saying it.

My dad like to jokingly say, "It's not wrong to do wrong. It's wrong to get caught."

 

[EveDallas]

I will say I haven't eaten at an Applebee's in probably 12 years - their food quality dropped to the point it was pointless. But having some server with a freaking bolt through his nose and ears was just to me. Never been back.

That said, what Pankratz said is not wrong, it's just not what people want to hear. Many employers in that market for employees are really pinched; food prices up, employee costs through the roof as well as reduced foot traffic. As Pankratz pointed out, once the free money dried up people slowly started coming back, but many are riding the wave for a while longer still. While not his greatest mistake, putting that in an email was the dumbest thing you can do. I'm not sure this will be the death knell for Applebee's, but if it is then we really haven't lost much on the American food scene.

It's been over a year since the last stimulus, and the extended unemployment stopped in September (or sooner for many states). Anyone who thinks people are still living off that is an idiot.

 

[GreatLakes]

Update. Applebee's has place the franchise owner on leave.

How exactly does that work? He owns the franchise so he isn't an employee. It isn't like they can tell him to stop paying himself. This sounds like a paper suspension.

 

[ronandannette]

The Applebees here pays more than minimum wage. My ds was looking yesterday for a host or server position and no restaurant here pays only minimum wage. I’m sure there are places that do but it’s not that way across the board.
I think the point is that places have had to raise the starting salary to entice workers to apply. Now that gas prices have gotten higher people may be more desperate for a job, therefore places may not have to offer a higher starting salary to entice them to work there.

Yes, that's how free-market economies work - supply and demand - including human resources, which is a commodity of sorts in every sector, not just food service. I'm surprised such a fuss is being made. The practice isn't discriminatory, or predatory, or abusive in any way. When there are many qualified applicants clamoring for minimum wage jobs, the jobs pay minimum wage. When no one will take the work at the price, the wages go up.

I don't think it will be applebee's death knell, but hopefully it will put pressure on them not to lower wages.

Why? Do you think that everbody just inherently deserves more money for whatever job they do? Starting wages will be lowered if lower wages can attract suitable candidates - what's unfair about that? Nowhere did that memo suggest wages for existing employees would be rolled back.

My guess is it's not because of what he said, but rather the fact that he got caught saying it.

My dad like to jokingly say, "It's not wrong to do wrong. It's wrong to get caught."

What exactly is wrong with a business owner taking all market influences into account when making decisions? Many restaurants run on very tight margins - they're not printing money. Controlling overhead (yes, staffing is a business expense) to maximize profit is essential.

 

[bethbuchall]

I voted no, but I’d never eat at Applebee’s anyway. If it were the only restaurant around while traveling, I’d find a grocery store and get something ready to eat there. This, however, really seals the deal.

 

[gopher101]

Yes, that's how free-market economies work - supply and demand - including human resources, which is a commodity of sorts in every sector, not just food service. I'm surprised such a fuss is being made. The practice isn't discriminatory, or predatory, or abusive in any way. When there are many qualified applicants clamoring for minimum wage jobs, the jobs pay minimum wage. When no one will take the work at the price, the wages go up.

Why? Do you think that everbody just inherently deserves more money for whatever job they do? Starting wages will be lowered if lower wages can attract suitable candidates - what's unfair about that? Nowhere did that memo suggest wages for existing employees would be rolled back.

What exactly is wrong with a business owner taking all market influences into account when making decisions? Many restaurants run on very tight margins - they're not printing money. Controlling overhead (yes, staffing is a business expense) to maximize profit is essential.

Because people deserve a living wage for their work.

 

[gopher101]

Another update. The actual franchise owner said Wayne did not have the power to make those choices and are not going to lower wages.
Applebee's itself said it did not agree with them.
3 manager of the franchise group have quit.

I know people will say the public backlash did nothing but I do believe if it hadn't had happened wages would have been lowered and the pressure of the backlash made them realize that was a bad idea.

 

[ronandannette]

Because people deserve a living wage for their work.

What's a "living wage"? There aren't very many places where the wages of a restaurant worker would entirely cover reasonable living expenses. Not all lines of work do. Whether they "should" or not is a question for philosophers, not economists.

 

[gopher101]

What's a "living wage"? There aren't very many places where the wages of a restaurant worker would entirely cover reasonable living expenses. Not all lines of work do. Whether they "should" or not is a question for philosophers, not economists.

Where it happened 15 an hour, which is what they are paying.

 

[undertheradar]

Where it happened 15 an hour, which is what they are paying.

You think they are paying $15 per hour for restaurant staff in Lawrence, Kansas? Possibly in Overland Park or Kansas City, not likely in Lawrence.

The franchise operates close to 50 Applebee's in the Midwest, not 50 in Kansas. The position that the emailer held did not control restaurant wages, so the email would have had zero impact on operations. Due to this email leak, numerous Applebee's locations will be impacted as a result of incorrect reporting/cancel culture in action.

 

[ronandannette]

Where it happened 15 an hour, which is what they are paying.

And what they will continue paying...unless the local economy dictates that qualified applicants become willing to work for less. Future applicants, that is, because again, the memo didn't imply any existing employee would have their wages lowered.