This year, Taco Bell is going to be experimenting with a new approach to recruiting qualified restaurant managers: in certain labor markets, it has announced it is willing to pay an annual salary of $100,000 to managers of company-owned Taco Bell stores.
The Taco Bell initiative is a response to a very difficult labor market for employers. With the current unemployment rate at historic lows — the product of a strong job market and lots of aging Baby Boomers moving into retirement, among other circumstances — there just aren’t many good candidates out there. So Taco Bell is going to test, in certain markets in the Midwest and Northeast, whether paying a $100,000 salary brings in a better crop of candidates. That represents a significant increase over the current starting salary for Taco Bell store managers, which ranges from $50,000 to $80,000.
The Taco Bell manager initiative isn’t the only evidence of a tight job market and wage pressure. The article linked above notes that other companies operating in the fast-food restaurant market — typically the classic source of low-paying, entry-level jobs — are reporting wage pressure affecting their margins. Just this week the Bureau of Labor Statistics reported that in the fourth quarter of 2019, “median weekly earnings of the nation’s 118.3 million full-time wage and salary workers were $936, an increase of 4.0 percent from a year earlier ($900).” The BLS statistics show wage growth in 2019 above the rate of inflation (which was about 2 percent) in all age categories except workers between 55 and 64, with workers in the 25 to 34 age range showing especially strong wage increases. And the BLS wage statistics indicate the labor market is particularly good for women, with median weekly earnings for women in 2019 up by 6.2 percent.
Imagine — making a six-figure income as the manager of a Taco Bell! Your parents never would have thought it was possible.