Wendy’s Blames Low Sales on Income Inequality | Eater
"Sales have slipped, and CEO Todd Penegor has blamed the drop on income inequality, arguing that income gains have skewed toward higher earners while rising rent and healthcare costs are eating into low-income households' ability to eat out. He noted roughly 40% of the fast-food industry's customer base earns $45,000 or less. The industry remains one of the lowest-paying in the U.S.: the average fast-food worker makes about $20,000 per year (BLS), and a 2015 UC Berkeley study found more than half of fast-food workers rely on government assistance. Labor tensions surfaced at a franchise in Wisconsin where workers staged a walkout over starting pay around $8/hour, which staff said made it difficult to attract and retain employees and left skeleton crews working 65+ hour weeks; the company did not immediately comment on its minimum hourly pay. Observers have called attention to pay disparities within the company — one cited ratio puts the CEO's pay at roughly $55 for every $1 earned by the average employee — even as broader labor movements and recent state ballot measures push for higher minimum wages." - Whitney Filloon
