Pizza Chain CEO, paying $16 an hour, says the real issue isn’t a labor shortage—it’s businesses unwilling to offer fair wages

Michael Lastoria, CEO of &pizza, a popular restaurant chain in Washington, DC, isn’t facing the staffing issues that are troubling so many other businesses. He credits this success to a simple approach: paying his employees a fair wage.

While labor shortages have led businesses across the U.S. to slash hours, reduce output, or raise prices, Lastoria told Insider that all 51 of &pizza’s locations are fully staffed and running smoothly. As the company opens 12 new locations this year, they’re receiving over 100 applications per job opening, with 15 more locations planned by year’s end.

Lastoria attributes this to an employee-centered business model, which includes paying an average hourly wage of $16 and offering benefits like healthcare and paid leave for activism. “We’re proof that claims about the ‘impossibility’ of paying a livable wage are simply not true,” he argued, suggesting such claims serve mainly to uphold outdated business models that prioritize executive pay while keeping staff wages low.

He stressed that the company’s success hinges on its workers. “Without them, we wouldn’t exist,” he said. Highlighting the broader issues low-wage workers face, he pointed out that today’s minimum-wage earners need to work about 79 hours per week to afford a one-bedroom apartment. To Lastoria, the “real crisis” is not a labor shortage but a shortage of employers willing to offer fair wages.

In his view, stagnant wages over the past 12 years, despite rising costs, have led to the so-called shortages businesses now face. “Higher wages lead to increased consumer spending and productivity, which benefits every company,” he added.

A tight labor market has also triggered a trend of “rage-quitting” among workers frustrated by low pay and poor work conditions. Former employees at companies like Dollar General, McDonald’s, Chipotle, and Wendy’s have reportedly left jobs abruptly due to tough environments. Lastoria summed it up, asking, “If you’re not paying employees enough to meet basic needs, what motivation do they have to stick around?”