(NEXSTAR) – Waffle House is planning to raise menu prices — and it’s not because you keep using too much of the complimentary ketchup and syrup.
Probably not, anyway.
In a video message shared with employees last month, Waffle House CEO Joe Rogers III laid out plans to offset the cost of increased wages by raising menu prices at restaurants — a move he said was necessary “to pay for this journey.”
“Make no mistake, whatever that edge is that we currently have with menu pricing, that is going to shrink a little bit in a few years,” Rogers said. “But our bet is the prevailing talent and attitudes we have behind the counter will be our biggest competitive differentiator of the future.”
Not all restaurants will be increasing prices at the same rate, though: Rogers said restaurants in major cities — like Dallas and Atlanta, he said — would have more “room” to raise prices than restaurants in “suburban or rural” areas.
“Our menu prices in a rural town are relative to competitors’ menu prices in that rural town. So we may not have as much room to increase prices as we have in a large city.”
He also indicated the more expensive menu prices at Waffle House locations in larger cities was designed to offset the higher costs-of-living for employees working at those locations.
A representative for Waffle House was not immediately available to provide additional details.
Rising prices, however, mean rising expectations from customers, Rogers acknowledged.
“This means that our levels of hospitality and service, the cleanliness of our units, and the preparation and portion size of our food, among other things, all need to elevate to a new level if we are going to be successful,” he said.
Rogers had announced plans to raise workers’ wages in May, via a system designed to begin increasing base pay, provide tenure-based bonus pay, and offer “premiums” for certain shifts. To do this, Waffle House divided its restaurant network into four groups, Rogers said, each with different ultimate goals for base pay to be achieved by different dates.
The first wage increases went into effect in June, Rogers’ video message indicated.
Waffle House, based in Norcross, Georgia, currently operates over 1,900 locations in 25 states, mostly in the Midwest and South.