Desperate for workers, US restaurants and stores raise pay

U.S. restaurants and stores are rapidly raising pay in an urgent effort to attract more applicants and keep up with a flood of customers as the pandemic eases

WASHINGTON -- U.S. restaurants and stores are rapidly raising pay in an urgent effort to attract more applicants and keep up with a flood of customers as the pandemic eases. McDonald's, Sheetz and Chipotle are just some of the latest companies to follow Amazon, Walmart and Costco in boosting wages, in some cases to $15 an hour or higher. The pay gains are, of course, a boon to these employees. Restaurants, bars, hotels and stores remain the lowest-paying industries, and many of their workers ran the risk of contracting COVID-19 on the job over the past year while white-collar employees were able to work from home. Still, the pay increases could contribute to higher inflation if companies raise prices to cover the additional labor costs. Some businesses, however, could absorb the costs or invest over time in automation to offset higher wages.