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Another Fast Food CEO Supports Paying Workers a ‘Fair Wage’

Another Fast Food CEO Supports Paying Workers a ‘Fair Wage’

Written by Rebecca Leber

For the second time this week, a CEO of a major fast food company came out in support of raising the minimum wage. Dairy Queen’s CEO John Gainor made a simple case for why Congress should raise the minimum wage from $7.25, in an interview CNN aired on Thursday: “It takes a lot of time to train people,” he said. “You want to make sure you’re paying a very good wage, otherwise you have a lot of turnover.”

“People need to be paid a fair wage,” Gainor said.

Dariy Queen has 4,800 locations, and the company did not have data on what the average hourly worker makes. But Huffington Post notes that wages reported on Glassdoor average $8 per hour. Noting that Dairy Queen hires “a lot of teenage and part-time employees,” Gainor estimated many people must be earning the bare minimum at the chain’s franchisees.

Subway CEO Fred DeLuca also announced Wednesday he’s “not concerned” about a proposed minimum wage hike. “Over the years, I’ve seen so many of these wage increases. I think it’s normal. It won’t have a negative impact hopefully, and that’s what I tell my workers.” Even though DeLuca acknowledged raises should be “normal,” the federal minimum wage hasn’t kept pace with inflation, increasing only slightly in 2008. Subway and Dairy Queen aren’t the only new supporters of a wage hike: former Republican presidential candidate Mitt Romney joined the chorus on Thursday.

Not only would a $10.10 minimum wage lift 4.6 million people out of poverty, but the chains that have tried it have benefited, too. Shake Shack has noted that a $10.70 wage helps the company to retain more of their employees, reducing turnover and growing them into managers.

This post originally appeared on ThinkProgress

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Photo Credit: Wikimedia Commons

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60 comments

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4:25PM PDT on Aug 24, 2014

Hummm...

4:23AM PDT on Jul 28, 2014

Dairy Queen & Subway are two of my favorite places!

8:02PM PDT on May 15, 2014

Mandy made the point I always get to when reading about wages or lack thereof.

1:06PM PDT on May 15, 2014

Hmm...nothing stopping DQ from raising their own entry-level wage right now...without legislation.

8:27PM PDT on May 14, 2014

Just saw the CEO of Panera on a news show....he said if the minimum wage is raised to $10.10 or $15.00 it would cause more inflation as all these companies WILL pass the increase to you and me the consumers and they will employ less people.
I get upset when I have a degree and can't get paid $15/hr in my occupation....

8:47PM PDT on May 11, 2014

Not only does it need to be raised to 10.10, it must go straight to at least $15.00 immediately, not gradually over 2 years, it needs to be kept abreast of inflation from here on out, no excuses.And the same goes for food stamps! When food processers stop creating 'junk' food, and spending so much on packaging and advertising, their food won't cost as much and everybody's food dollors will go farther.

2:41PM PDT on May 11, 2014

I have developed a taste for DQ and am glad they see their staff as an asset.

12:43PM PDT on May 11, 2014

wait staff are the ones who are screwed

12:12PM PDT on May 11, 2014

It's about time these folks realized the economy is down because people don't have money to spend on anything but housing and food!!!!

6:49AM PDT on May 11, 2014

I'm with James M, why aren't Subway and DQ trying to have their franchises pay that wage now?

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