Says in leaked email that they will make it easier to hire desperate paycheck-to-paycheck employees at lower wages.
An executive at a company that operates Applebee’s and Taco Bell franchises in several states has reportedly sent an email gloating that higher gas prices will make it easier to pressure potential employees to accept lower wages.
The email, posted on a Reddit sub-channel this week, outlined a theory that higher gas prices would make potential employees more desperate for work and therefore more willing to accept lower pay.
“Most of our employee base and potential employee base live paycheck to paycheck,” the executive, identified as Wayne Pankratz of American Franchise Capital, wrote, according to the Kansas City Star.
“Any increase in gas prices cuts into their disposable income. As inflation continues to climb and gas prices continue to go up, that means more hours employees will need to work to maintain their current level of living.”
Mom and Pop Competitors
In addition, higher inflation will hurt mom and pop competitors. “Some businesses will not be able to hold on … This is going to drive more potential employees into the hiring pool,” the executive wrote
“The labor market is about to turn in our favor,” Pankratz added.
A spokesperson for American Franchise Capital told the paper Pankrantz’s comments did not reflect the company’s policy or culture.
The company owns and operates 49 Applebee’s and 72 Taco Bell restaurants, according to its Linked In page.
Condemnation
The leaked email drew sharp condemnations online, with many people vowing not to eat at Applebees as a result.
Applebees is owned by Dine (DIN) – Get Dine Brands Global, Inc. Report which also owns iHop restaurants. Almost all of its Applebees restaurants are operated by franchise holders.
A company spokesperson did not immediately respond to a request for comment.
Shares of Dine DIN ended up $2.53, or 3.4%, at $76.92.
