The Workers’ Comp Approach Boosting Franchisees’ Cash Flow
💸 Hospitality franchisees face challenges with rising wages, inflation, and consumer confidence. An International Franchise Association (IFA) survey found 37% of franchisors see labor costs and recruiting quality employees as significant hurdles. Furthermore, 70% reported franchisees have open positions. ADP Research indicates that median base wages for sit-down restaurant employees reached $24 an hour as of September 2024, a 28% rise from pre-pandemic levels. Job-stayers in leisure and hospitality have seen higher pay growth than new hires since December 2022. Inflation concerns increased among respondents to 12% in 2024, up from 9% the prior year.
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