After five years of planning, Waffle House says it will raise its base wage to $3 an hour.
Chief Executive Joe Rogers III announced in a video to employees that the company will set a new base pay floor this month and gradually increase it to a minimum of $5.25 an hour by June 2026.
The video was released in May but was only recently revealed. Rogers called the move “the largest additional investment in our workforce in Waffle House’s 68-year history.”
The federal minimum wage will reach $15 an hour in 2025. However, tipped employees are usually not included in this number.
Base pay is just a portion of a Waffle House worker’s salary. The most important thing is tips (the company assured employees that there will be no tip sharing or tip pooling as part of the new pay — each employee will keep the tips they earn). Employees will also receive lifetime bonuses based on their time with the company (collectively). Starting this month, waiters and waitresses will receive the same lifetime bonuses as barbecue joint operators.
Employees who have worked at Waffle House for three years or more are eligible for a lifetime bonus, which initially increases their hourly wages by 50 cents. Workers who have been with the company for more than 30 years can earn an additional $3.20 an hour.
Waiters and waitresses who work shifts where tips are historically low can earn an extra 50 cents or a dollar an hour on top of their base pay.
The company said the base rates will increase over time and are divided into three different categories. One will have a base of $5.25 per hour by June 2026, another will hit $6.25 in February 2027, and the third will grow to $7.25 in June 2027.
In states where laws already provide for base rates, there will be no immediate changes. Rogers said no one would see their base rate reduced.
To pay higher wages, Waffle House plans to raise menu prices.