Why these franchise owners decided to pay more and reap huge benefits.


In case the link is closed to some, the gist is that @ $17/hour plus good benefits is very profitable for these Chic-Fil-A franchisees. Turn over went from 144% to 73% and at a cost of thousands to hire and train personnel, retention is just good business. One started higher pay in the 90’s (not $17 then, but $9, then increasing) and the other about 4 years ago, at $17. Sales more than doubled from $5 million to $11 million as service and quality improved. Morale and reliability increased dramatically and the owner had more time for his own family.

8 thoughts on “Why these franchise owners decided to pay more and reap huge benefits.

    1. I can’t read the article either, but Yes, it is nice when the marketplace “does good” independently.

      One thing that stands out to me: Chic-Fil-A must have had profits in period A to pay higher compensation rates in period B in order to begin period C with even higher profits on hand. You can see from this that profits aren’t just a freebie the business owner gets to walk away with. In a way, profits are really future business expenses.


    2. Those theorize that labor has no value might learn a lesson here. Low wages can cost a company more than it appears to save in the short term.

      This franchisee used a lot of part time labor to cut costs, but motivated, trained and well compensated full timers will help grow a company they feel deserves it.

      Liked by 1 person

      1. I don’t know of anyone who said labor had no value. Its value is what it contributes to his employer’s profitability. His employer pays him for that, it’s called his wage.

        But some labor has more value than others.

        And sometimes that added value comes from the employer who trains the worker and carries him while he learns.

        Who does that added value belong to?


        1. If a highly trained employee comes in and makes more money for the company, does the employee give up his value. He can stay and ask for more compensation, or he can peddle his value elsewhere (barring reasonable and very limited trade secrets non-compete contracts.)

          Marx apparently stipulated that only labor adds value. A vague and debatable statement. But when I have mentioned the value of labor in the past, Marx rears its head and I am now a communist.

          But in these franchises where wages, benefits and hours are managed better for the same work, it is accomplished by increasing the value of the labor via pay. And yet, the end result is much more value for the franchisee.

          We may be in a semantics debate.

          Liked by 1 person

  1. It’s nice to know that company doesn’t need my money. I stopped eating there when I found out how they spend their lobbying money.

    I admire them for being closed on Sunday. I just have one question: Why not on Saturday, the observed Sabbath of a LOT of people?


    1. BH Photovideo is the largest non-chain camera retailer in the country. 2000 employees, huge online sales and 150,000 store in midtown Manhattan.

      It is founded and run by Orthodox Jews. It closes around 4 on Fridays, and opens back up on Sunday. You can’t even order online except to put products in the cart.

      I like this system. Each religion, if observant and important enough to the owners, should be able to run their business hours as they see fit.

      There are complications, of course. Does this extend to the retail portion WRT who gets to buy based on lifestyle. Can B&H stop a sale to a gay photographer because he photographs gay weddings? Or is that the same as the old “Whites Only” signs of the Jim Crow era? A baker won a suit in a case like this.

      Liked by 1 person

      1. One of the suppliers we deal with at work, Sunlite, is based in Brooklyn and always announce closures for the High Holy Days.

        They don’t operate on Sunday either.


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