As some cities and states vote to raise their minimum wage to double-digit territory, one giant franchisee CEO is already changing his growth strategy as a result. (Tweet this)
"We are altering our expansion strategy, for sure. We are focusing our growth entirely on states that aren't as aggressive as the blue states, typically, that are increasing their minimum wage," said Greg Flynn, founder and CEO of Flynn Restaurant Group.
This does not mean the company is closing locations. Instead, it has raised prices to counteract the added labor costs.
The company, which franchises 475 Applebee's locations and 185 Taco Bell restaurants, ranks as the biggest franchisee group in the country with $1.5 billion in annual sales. It employees roughly 36,000 people (the equivalent of about one-tenth of the total Alaskan civilian workforce) in 28 states.