McDonald’s raising hourly pay in company-owned restaurants amid tight labor market

McDonald’s Corp. is feeling the labor crunch.

The fast-food giant will raise the wages in its 650 U.S. company-owned locations by an average of 10% during the next several months as it looks to hire up to 10,000 new employees in the next three months. Also, entry-level wages for new employees will rise to at least $11 an hour, based on the location. (Company-owned restaurants make up approximately 5% of McDonald’s total U.S. locations.)

The average employee wage at a McDonald’s-owned unit will increase to $13 an hour over the next few months, rising to $15 per hour in all company-owned locations by 2024.  Entry-level workers will make at least $11 per hour; shift managers will make at least $15 per hour.

McDonald’s is the latest restaurant chain to announce pay raises. On Monday, Chipotle said it will raise workers' pay to an average of $15 per hour by the end of June.