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McDonald's is the latest company to raise hourly wages

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McDonald's is among the latest companies to raise hourly wages. It will raise wages at an average of 10 percent for its U.S. company-owned restaurants over the next several months. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

McDonald’s is raising the hourly wages for its U.S. company-owned restaurants as the fast-food chain looks to hire 10,000 workers for those locations.

The broader restaurant industry is facing a labor crunch. Fewer people are returning to the workforce than expected, and eateries are trying to meet consumer demand as it comes roaring back. The hiring announcements that usually arrive in the spring and summer months have been accompanied this year by news of wage hikes, referral and retention bonuses and other enhanced benefits. Chipotle Mexican Grill, for example, said its average wage per hour would be $15 by the end of June.

Workers at McDonald’s company-owned locations will see pay raises of an average of 10% over the next several months. Entry-level employees will be making $11 to $17 per hour, and shift managers will make $15 to $20 an hour, based on location.

“Together with our franchisees, we face a challenging hiring environment, and staying ahead means we must constantly renew our commitment to offer one of the leading employment packages in the industry,” McDonald’s USA President Joe Erlinger said in a message to the U.S. system viewed by CNBC.

Based on the current labor market, McDonald’s expects that the average wage for employees of its company-owned restaurants will be $15 per hour by 2024.

However, these increases will not directly impact workers who are employed by restaurants owned by McDonald’s franchisees. The fast-food giant franchises 95% of its U.S. restaurants.

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