Outsourcing founder explains why a Manhattan restaurant uses a staffing firm in the Philippines that pays cashiers a few dollars an hour: ‘The cost is admittedly cheaper than the U.S.’

Outsourcing founder explains why a Manhattan restaurant uses a staffing firm in the Philippines that pays cashiers a few dollars an hour: ‘The cost is admittedly cheaper than the U.S.’

Apr 12, 2024 by Fortune

Key Facts

  • Trying hard to stay afloat in a restaurant industry spending 36% of its cash on labor and with minimum wage creeping to $16, a cadre of local New York City chains have found a shrewd way to save: enlisting the help of cashiers video calling in from the Philippines and paying them way less.
  • Zhang’s company draws most of its labor from a massive well of 1.3 million Filipino workers employed through the country’s business process outsourcing (BPO) industry, which is the largest in the world and generated $35.4 billion in revenue in 2023.
  • The business, which has been operating in Sansan Chicken since last October, is also in its pilot stages at Sansan Ramen and a couple Yaso Kitchen locations, as well as in another local chain that Zhang did not disclose the name of.
  • Though he didn’t disclose Happy Cashier’s wages, Zhang said, “We pay 150% more than the average cashier job in the Philippines,” which, according to Indeed, is 56.69 Philippine pesos, or about $1, per hour as base pay.

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