Teens hard to come by for fast food franchises looking to hire

With job openings currently exceeding the number of Americans actively looking for full-time employment, business owners often turn to teenagers to fill the void, particularly for those positions that don't require a great deal of skill or mastery.

Here's the problem: They're largely absent from the labor force, especially in comparison to former years.

As reported by Fox Business, approximately 60 percent of teenagers in 1979 were employed, whether on a part-time or full-time basis, based on data from the Department of Labor. But in 2015, only 34 percent of teens were working.

So long as they're of the appropriate age – typically no less than 14 years old for most non-agricultural work, per the Fair Labor Standards Act – young people are a key demographic for quick-serve franchises and fast food chains. Generally speaking, they have fewer responsibilities compared to those who are older, making them more capable of filling less desirable time shifts. Teens are also common recipients of minimum wage, although more states are raising base pay to $15 per hour.

But as fast-food locations expand – having grown twice as quickly as U.S employment overall since 2010, according to The New York Times – companies are being forced to come up with new strategies to curry favor with teenagers, many of whom view these positions unfavorably.

Tamra Kennedy, a franchisee who operates multiple Taco John's locations in the Midwest, told Fox Business that part of the issue is with perception.

"We have a PR problem in fast food," Kennedy explained. "We need to up our game and do a better job talking about why taking a job in a restaurant is a good idea."

Help extremely hard to find in summertime
The slim-pickings predicament becomes even more acute for fast food establishments during certain seasons when customer traffic tends to pick up, such as the summer months. Franchisee Keith Miller told the Times that the number of applications he sees when schools aren't in session has dropped substantially from yesteryear.

"We used to get overwhelmed with the number of people wanting summer jobs," Miller related. "I don't know what teenagers do all summer."

The dry spell of teenagers may be related to the time they spend on school-related activities, such as homework, research and learning-based extracurricular activities. According to a 2017 study conducted by a team of economists from the Bureau of Labor Statistics, 15- to 19-year-olds devoted an estimated 7.7 hours per day toward these activities between 2010 and 2014. That's up from slightly from 7.5 hours compared to 2003 through 2007. 

Additionally, more teenagers are staying in school in the summertime, with 42 percent of 16- to 19-year-olds enrolled in July 2016, up from just 10.4 percent in 1985.

Franchises offering more competitive wages
In an attempt to become more desirable workplaces in the eyes of teens – not to mention their parents – fast food franchises are raising wages. Some locations are being forced to do so, with minimum wages poised to reach $15 per hour in several cities due to actions by state lawmakers. Certain cities have already reached the mandatory $15 minimum, such as Seattle, Washington. They're also offering more benefit perks, such as travel reimbursement, bonuses for referring friends or acquaintances and insurance plans.

"It's much better than before, Juan Morales, a 15-year employee of a Staten Island-based Subway, told the Times.

Better offerings and salary aren't always enough, however. According to AZ Central, the fast food industry has one of the highest turnover ratios of them all, topping 150 percent. This means that in a given year, a company may have an entirely different team 12 months later.

Given that the economy continues to expand and openings eclipse job seekers, high turnover may be not be around for awhile.

Whether you're operating a franchise or seek to create one, predicaments such as the aforementioned don't get solved overnight. They frequently don't present themselves right away either. The Law Offices of Donald W. Hudspeth has the foresight, experience and fortitude to help your franchise thrive so you're not working beyond your means. We'll help you craft a business plan that can help keep you competitive and your employees happy.

Categorised in: Starting a Business in Arizona

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