The COVID-19 pandemic has impacted nearly every facet of our lives, but it has had a particularly devastating impact on the food service industry. An estimated 20% of the service industry is currently unemployed, and those still employed are suffering from a consistent decline in equitable wages.
The pandemic clearly demonstrates the necessity of service industry employees to sustaining restaurant operations and maintaining America’s food supply. Without them, dinner could not be ordered, meals could not be prepared and cocktails could not be energetically shaken. Yet, these workers are crashing through the social safety net at alarming rates.
Although the average pay for restaurant workers is slightly above minimum wage, many employees working full time do not earn above the federal poverty line, cannot meet basic needs and must rely on government assistance. The cost of public assistance to frontline workers in the fast-food industry alone is nearly $7 billion per year!
People are also reading…
Since the late 1960s, lawmakers have let the value of the minimum wage erode, allowing inflation to reduce gradually the buying power of a minimum wage income. This decline in purchasing power means low-wage workers have to work longer hours now just to achieve the standard of living that was considered the bare minimum half a century ago.
This is not just an industry problem; it is our nation’s problem. In the United States, food service is the second-most common occupation. In Oklahoma alone, the food service industry employs 11% of the total job base. In addition to becoming a vital source of our local economy, restaurants have become the lifeblood of our communities; they bridge cultural divides and build community in important and integral ways.
The value we place on the food service industry is evident. Unfortunately, the human beings who are essential for the successful operation of the service industry are not given the same emphasis and prominence.
We have spent a great deal of time discussing innovation in the restaurant industry in hopes of finding new ways of scraping together enough revenue to cover operational costs. Companies providing alternate delivery methods and contactless payment technologies experienced surges of explosive growth, and while technology became an invaluable resource in the industry, the result of implementation and associated service fees removed razor thin profit margins facing the industry even before the pandemic. In addition to increased costs from to-go containers, plexiglass dividers, masks, gloves and air purification to keep employees safe (and working), restaurants found innovative ways to serve their customers: the innovation has been incredible to watch!
We must apply the same entrepreneurial innovation to improving employee standards. Although struggling small and family-owned restaurants may lack the resources to implement higher wages, philanthropy and large companies can pave the way. We have resources to enable innovation in ways that many can’t or won’t. Increasing employees’ net disposal income allows people to invest in their retirement and education, while reducing their reliance on government assistance. Enhancing quality of life directly correlates to the improved physical, mental, emotional and social functioning of our communities and our society.
To set the industry standard, Lobeck Taylor Family Foundation and Mother Road Market will pay frontline employees a higher wage to support their basic needs. Although we already compensated above Oklahoma’s minimum wage, our research showed that simply wasn’t enough. Our new wages increased hourly non-tipped positions to 79-134% above Oklahoma’s minimum wage. Wages for tipped positions will be audited each pay period to ensure they are compensated accordingly. And, we are hiring new employees as the facility begins the indoor reopening process.
If we ever hope to thrive as an industry, the only way to do it is to have passionate, inspired and financially secure employees on our frontlines. Paying a livable wage is the first step in a comprehensive plan to help rebuild this devastated industry and our community. The industry is too large and the need is too great to ignore this problem any longer.
Elizabeth Frame Ellison is president and CEO of Lobeck Taylor Family Foundation, founder of Mother Road Market, Shops @ Mother Road Market and Kitchen 66.
Featured video:
Jan. 31, 2021 editorial: The 2021 Tulsa World legislative agenda
Elizabeth Frame Ellison is president and CEO of Lobeck Taylor Family Foundation, founder of Mother Road Market, Shops @ Mother Road Market and Kitchen 66.






