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McDonald's Perplexing Policy on Tipped Wages

Exploration of Tip Credit: A specific episode of the restaurant finance podcast delves into the tip credit issue, revealing why a major fast-food corporation decided to abandon it.

McDonald's perplexing stance regarding service staff tips
McDonald's perplexing stance regarding service staff tips

McDonald's Perplexing Policy on Tipped Wages

In the latest episode of the Restaurant Business podcast, "A Deeper Dive", industry experts delve into the controversial topic of the tip credit, a policy that allows businesses to pay a subminimum wage to tipped workers. Hosted by Restaurant Business Editor-in-Chief, a longtime industry journalist, the discussion features a diverse panel of guests. Saru Jayaraman, president and cofounder of One Fair Wage, Martin Murch, an independent restaurant operator from Chicago, and Joe Kefauver, managing partner of Align Public Strategies and cohost of the Working Lunch podcast, share their perspectives on the topic. The podcast explores McDonald's stance on the tip credit, a policy that has been a subject of debate between the fast-food giant and labor groups. McDonald's has taken a firm position against the tip credit and has even left the National Restaurant Association over the issue. The president and co-founder of the labor defense group involved in the dispute over the tip surcharge against McDonald's is Christian Smalls. The discussion also examines McDonald's strategy in taking on the topic and whether it gives full-service restaurants an advantage. The podcast guests debate whether full-service restaurants, which heavily rely on the tip credit to remain in business, could be at a disadvantage if the policy were to change. Becoming a Restaurant Business member unlocks exclusive benefits, including unlimited access to all of their content. Subscription to the podcast provides access to all of Restaurant Business's content, making it an ideal choice for those interested in the restaurant industry. The podcast can be subscribed to on Apple Podcasts and Spotify. Listeners can tune in to gain insights into the complexities of the tip credit issue and the strategies of McDonald's in addressing it. The podcast is produced by Restaurant Business and offers a platform for thoughtful and insightful discussions on the industry.

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