«Breaking News» Shake Shack tries out a four-day work week to attract staff as the U.S. job market tightens

The fast-growing, fast-casual burger chain, Shake Shack, is shaking things up in terms of their employment strategy by offering a four-day work week.

The gourmet burger chain is testing the innovation in some of its Las Vegas, Nevada, locations due to a tightening labor market and unemployment being at its lowest in almost 50 years, according to Bloomberg. 

'Here in Las Vegas, in some of our Shacks, we're testing a four-day work week. That's a big thing,' Chief Executive Officer Randy Garutti said at an investor conference Thursday. 'Nobody's really been able to figure that out in the restaurant business.'

'If we can figure that out on scale, it could be a big opportunity,' Garutti added. 'We're not promising it yet, but it's something we're having fun trying, and seeing how our leaders like it on a recruiting basis and ongoing retention basis.' 

A Shake Shack restaurant on the Las Vegas Strip on December 19, 2018. The restaurant chain announced that locations in Las Vegas is experimenting with the four-day work week

Former US Labor Secretary Thomas Perez (center) and Shake Shack CEO Randy Garutti (left) laugh with a Shake Shack employee on March 21, 2014

Workers prepare hamburgers in the kitchen at the first Shake Shack burger restaurant to open in Moscow, Russia, on Tuesday, December 24, 2013

With average hourly earnings for limit-service restaurant workers outpacing the national average for all industries, and a nationwide movement to increase the minimum wage to $15 an hour gaining steam, increased wages does not appear to be enough to meet the staffing challenge.

The hospitality industry's turnover rate for employees remained more than 70% for the second straight year, according to MarketWatch, and staffing restaurants in general has become a challenge.

Last year, Aloha Hospitality, which runs Baumhower's Victory Grille and Dauphin's in Alabama, announced in a press release a four-day-work week to promote a 'life-work balance' for 'a younger millennial workforce.'

A review of a four-day-work week at New Zealand financial firm, Perpetual Guardian, last month made headlines after after their six-week trial involving almost 250 employees appeared to be successful enough to retain it permanently.

Randy Garutti, CEO of Shake Shack, left, and Danny Meyer, founder of Union Square Hospitality Group, in New York on March 13, 2013

The original Shake Shack location in Madison Square Park in New York City

Striking McDonald's restaurant employees in an intersection before being arrested, after walking off the job to demand a $15 per hour wage and union rights during nationwide 'Fight for $15 Day of Disruption' protests on November 29, 2016 in Los Angeles, California

While the four-day-work week is found more regularly in places outside of the U.S., the concept is popular with almost two-thirds of American workers responding to a survey that they would wish to work less than five days a week.

For Shake Shake, an innovative approach to a human resources problem is not entirely unusual.

In 2016, the restaurant chain raised their wages higher than the national average in order to attract and retain higher quality employees.

'One of the things I'm proudest about is just how many of the managers at Shake Shack, who all have stock options, started off as hourly workers, but at a much higher rate than they might have made in the fast-food world,' Shake Shack founder Danny Meyer told Business Insider. 

Shake Shack is a fast-casual chain known for its burgers and shakes that launched out of a kiosk in New York City 

Link hienalouca.com

https://hienalouca.com/2019/03/16/shake-shack-tries-out-a-four-day-work-week-to-attract-staff-as-the-u-s-job-market-tightens/
Main photo article The fast-growing, fast-casual burger chain, Shake Shack, is shaking things up in terms of their employment strategy by offering a four-day work week.
The gourmet burger chain is testing the innovation in some of its Las Vegas, Nevada, locations due to a tightening labor market and unemployment...

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Dianne Reeves US News HienaLouca





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