The IFA states that roughly 70% of operating franchises are food establishments. There is an unfortunate perception in the marketplace that employees in these establishments are "unskilled" laborers who will gladly work at minimum wage and that there is a plentiful supply of such labor.

As a multi-unit QSR (Quick Service Restaurant) franchisee, I can report that the reality is significantly different. Most retail concepts require that their employees can do all, or at least most, of the jobs required in the establishment. This means not only cleaning and washing dishes, but also food preparation, cashiering, and serving customers. Each of these areas requires thorough attention to detail, reliability, teamwork, diligent work effort, a ready smile, good language skills, a willingness to learn new skills, and good physical condition. If ANY of these characteristics are missing, your business – and you – will suffer.

Now, take a moment to think about each of these characteristics. How easy will it be to find someone to work at or near minimum-wage, who exhibits:

• Reliability
• Speed and productivity
• Willing and able to learn
• Teamwork
• Excellent customer service
• Good physical condition
• Excellent language skills

Let me ask you a question: if an individual exhibited all of these characteristics, are they really forced to work at minimum wage? If not, how much are you realistically going to pay employees to get these characteristics?

The reality is that managing employees in a very low-margin business is very challenging, because good employees can expect to find their wages increasing quickly as they prove their capability.