KIRO NEWSRADIO

How does Dick’s Drive-In pay workers $19 an hour with a menu completely under $5?

Oct 5, 2021, 5:30 AM | Updated: Oct 10, 2024, 1:40 pm

Dick's burgers...

Dick's Drive-In in the University District. (Courtesy photo)

(Courtesy photo)

Dick’s Drive-In has always paid high wages and provided amazing benefits for its employees, like college scholarships, child care, and health care, and at the end of September, the company raised its base wage from $18 to $19 an hour.

Last week I got a press release from Taco Time, announcing a test program that will pay entry level crew members $20 an hour at its Issaquah and North Bend locations, its shortest staffed restaurants. All positions include paid vacation, medical and dental insurance, a 401k, and free meals for staff and their families.

A couple weeks ago, Seattle’s Dan Price — the CEO who made headlines for taking a pay cut so he could pay all of his employees $70,000 salaries — tweeted the following:

So how do these companies do it? Dick’s Drive-In President Jasmine Donovan is in a particularly good position to provide some insight.

“I am the granddaughter of Dick Spady, our namesake and one of our three co-founders,” Donovan said.

She said Dick’s raised its prices earlier this year to afford the pay increase and because of rising costs associated with supply chain issues.

“Our Deluxe [burger], at some of our locations, went up by 25 cents; some other products went up five cents or 10 cents,” she explained. “We appreciate that customers don’t mind. We like to be able to pay the highest wages and benefits in the industry, it’s something we’re very proud of. But to do it, we have to sell a lot of burgers and sometimes have to charge a little bit more.”

But not that much more; the most expensive thing on the menu is $4.25. Of course, all restaurants are different and Donovan recognizes that Dick’s has an advantage as a beloved, 70-year-old heritage burger joint.

“We’ve been around a long time, we own some of our own real estate, so we control our own destiny there,” she described. “We also sell a lot of burgers, fries, and shakes at all hours of the day and night.”

She says other business owners often ask for advice on how to offer employees the benefits that Dick’s offers.

“I give them the same advice my grandfather had when he was starting the business,” Donovan recounted. “A business, first step, is it has to make a profit. The next step is to invest in your employees. They’ll take better care of your customers, which will help you earn more profit. When they move on from your business and do other things, they’re evangelists for your company and that helps you make more profit.”

“Once that virtuous cycle is going, you can also invest in your community because if your community is thriving, your business will thrive,” she continued. “And so for these businesses that come to us asking what they should do first, the biggest thing that I tell them is talk to your employees. Ask them what is it that your employee population would want. Talk to them! Maybe it’s child care, maybe it’s a transportation stipend, maybe it’s more flexible schedules. Start with that. And if you can’t do it for everybody or everything that they would want, just do some part of it, then work your way up from there.”

Case in point, during my interview, a man waiting in line mentioned that he worked at Dick’s around 1968, that he made $5 an hour and was offered scholarship money, and he’s still a loyal customer.

If you’re thinking burger flippers don’t deserve to make $19 an hour, Donovan says working at Dick’s isn’t an entry level job, and they are quite picky about who they hire.

“When people say, ‘Oh, you’re going to go flip burgers,’ it’s not that simple,” she noted. “We have an orchestrated precision going on in our restaurants. It is a lot of work, and at the same time there also has to be jobs for people who really just need their very first attempt at a job. Ours isn’t that one and those jobs are going to pay less than our jobs, right? So for me to get the people that I need in my restaurant, I have to pay $19, but the state minimum wage is going to be $14.50 in January.”

There’s a funny disconnect associated with the restaurant industry. Many don’t consider “burger flipping” a respectable career, but they sure would be upset if there weren’t any burgers for sale.

Listen to Rachel Belle’s James Beard Award nominated podcast, “Your Last Meal.” Follow @yourlastmealpodcast on Instagram!

KIRO Newsradio

Photo: Citizens march in Seattle to commemorate MLK Day....

James Lynch

Marches held throughout Western Washington to commemorate MLK Day

On this Martin Luther King Jr. holiday, rallies and marches were held all over Western Washington.

17 hours ago

Image: President Donald Trump finishes his inaugural address as Vice President JD Vance applauds du...

The MyNorthwest staff with wire reports

Trump inaugural speech: President rips past leaders, makes promises; KIRO hosts react

Trump inaugural speech: The president’s second address contained an indictment of the country he inherits and promises to fix its problems.

17 hours ago

Photo: Attendees watch at an Inauguration parade as a screen shows President-elect Donald Trump tak...

Julia Dallas

‘Like winning the Super Bowl:’ KIRO Newsradio host gets firsthand look at Trump inauguration

John, host of "The John Curley Show," on KIRO Newsradio flew to Washington D.C. to attend the Trump inauguration.

21 hours ago

Image: President-elect Donald Trump and Melania Trump are greeted by President Joe Biden and first ...

Steve Coogan

‘Trump will deliver a strong message:’ KIRO, KTTH hosts offer Inauguration Day thoughts

It is Inauguration Day and Donald Trump who won another White House term in November, will be sworn in Monday as the 47th U.S. president.

1 day ago

Everett stabbing...

Sam Campbell and Luke Duecy, KIRO Newsradio

Boy, 13, stabbed near Everett school; person of interest was in custody on separate charge, report says

A 13-year-old boy was walking to class in Everett when the Everett Police Department said an unknown man committed the stabbing.

1 day ago

Relatives and friends of people killed and abducted by Hamas and taken into Gaza react as they gath...

Tom Brock

Local Jewish leaders “overwhelmed with emotion” but not celebrating release of three Israeli hostages

Local leaders of Seattle's Jewish community are reacting to this weekend's release of three Israeli hostages.

2 days ago

How does Dick’s Drive-In pay workers $19 an hour with a menu completely under $5?