Wayne Pankratz, chief operations officer at American Franchise Capital, which owns 50 Applebee franchises in the Midwest, urged the company to cut wages for workers already hard hit by soaring gas prices and inflation.
An Applebee executive caused an uproar when he allegedly told company officials in a leaked email that soaring gas prices and inflation could be used to drive down the wages of workers who are already living paycheck to paycheck.
In a copy of an internal email posted to Reddit on Wednesday, Wayne Pankratz, chief operations officer of American Franchise Capital, which owns 50 Applebee’s in the Midwest, allegedly told fast food chain managers that employees and job seekers were causing economic damage. what he saw as an “advantage”.
“The majority of our employee base and potential employees live paycheck to paycheck,” the email said. “Any increase in gas prices reduces their disposable income.”
This week, the average price of a gallon of regular gasoline in the Midwestern states hovered around $4, while in Los Angeles the price hit a record $6,011, according to the AAA Gas Price Index.
Pankratz allegedly continued, “As inflation continues to rise and gas prices continue to rise, this means employees will need to work more hours to maintain their current standard of living.”
He added that with government aid dwindling due to the pandemic and people needing two jobs to survive, the company needs to make sure new workers get lower wages and that their lives should revolve around the life of the Applebee. , according to a leaked email.
In a copy of a leaked email posted on Reddit, Pankratz allegedly tells company officials that they need to take advantage of the economic problems plaguing American workers.
Along with rising gas prices, inflation has left many across the country struggling
“The labor market is about to turn in our favor,” Pankratz allegedly wrote. “In addition to hiring employees at lower wages to reduce our labor [cost] (when possible) make sure you have a pulse on the morale of your employees.
“Your employees who live from check to check are more affected than the people reading this email. Realize it. Many will have to work longer hours or look for a second job,” the letter says.
“Do something to make sure you are the employer of choice. Fill out schedules ahead of time so they can plan their work around yours.”
He continued to gloat that family businesses and other competitors are going bankrupt due to the pandemic, leaving Applebee with more potential contenders to exploit.
Scott Fisher, a spokesman for American Franchise Capital, told the Kansas City Star that the email does not reflect the company’s position and Pankratz has no right to make such changes.
“He doesn’t have the authority to determine our company’s brand policy or anything else,” Fischer said. “Maybe he wrote it in the middle of the night. I do not know.’
“The main message here is that this is absolutely in no way, shape or form related to our politics, our culture or anything like that to our brand.”
Kevin Carroll, Applebee’s chief operating officer, also denounced Pankratz’s alleged statement and said the company did not share the opinion of the AFC chief executive.
“This is the opinion of the individual, not the Applebee,” Carroll said in a statement. “We understand that the franchisee who owns and operates the restaurants in this market has put a person on vacation.
“Our team members are the lifeblood of our restaurants and our franchisees are always looking to reward and incentivize team members, new and existing, to stay in the Applebee family.”
The email leak sparked outrage from the Applebees in Lawrence, Kansas, where three managers quit in protest, according to the Lawrence Journal World.
Jake Holcomb, one of the managers, told LJ World that the restaurant was closed for two days after the email was leaked.
“I was just stunned and outraged,” said Holcomb, who has been with the company since 2020.
The reaction online intensified, with many taking to Twitter to denounce the company for its hollow words.
Many took to Twitter to criticize the company for allegedly trying to take advantage of employees.
An Applebee’s store in Lawrence, Kansas (pictured) was closed for two days after three managers quit to protest what was said in the email.
Twitter user Kristen Tepper wrote: “It’s one thing to be a greedy asshole. It’s a whole different game if you’re dumb enough to put your greedy thoughts into an email.
Salem Snow, who said he retired as a manager at Applebee in the past, said the email didn’t reveal anything new about how the company operates.
“Applebee told me that in order to succeed in their business, I need to give up my humanistic and socialist views,” wrote Snow on Twitter. “It happened after I objected to the wrongful dismissal of employees.”
“Applebee’s knows they’re anti-worker. They don’t want you to know.
Leslie Richardson, another Twitter user, said she would no longer support the company despite enjoying the restaurant for many years.
“We have been customers of yours for decades, from the Burnsville Center restaurant, Minnesota, to the Applebees in my office building in St. Paul, where I dined, to the restaurant on Bel Red Road, Washington,” Richardson said. “I get all my lunches at work from there. Today it has stopped forever.
Twitter user Nick Joseph was outraged by the letter, tweeting: “So they admit they are not paying their employees a decent living wage and their solution is to…..schedule earlier so their employees can plan their second work tailored to their needs? What a joke.’
Another Twitter user with the handle OC Edge wrote: “It’s rather ironic that the email ends with the phrase ‘have a culture and environment that will attract people.’
“Nothing in this email exchange suggests that they know anything about what will attract potential candidates. It’s sad that employers feel this way.”