Fazoli’s adds a daily pay option for hourly workers

The move is designed to help cash-strapped employees during the pandemic.
Photo courtesy of Fazoli's

Fast-casual Italian chain Fazoli’s has added a daily pay option for its hourly employees.

Since launching the program six weeks ago, 42% of the chain’s eligible workers have enrolled in the program, the company announced Tuesday.

To participate, workers download the DailyPay app to receive their wages either the same day or the next day. There is no cost to sign up, but employees and/or employers must pay $1.99 for next-day wage transfers or $2.99 for instant transfers, according to the DailyPay website.

“Many people in the service industry have been severely impacted by the pandemic,” Fazoli’s Vice President of Human Resources Dave Craig said in a statement. “At Fazoli's, we were fortunate to  remain open for business throughout, but many of our team members had family who lost jobs or had hours reduced and found themselves in need of cash to pay bills on time, purchase food or cover medical expenses. Payday loan providers can charge up to 18-22% interest rates for cash advances, but DailyPay enables us to get earned wages to our team members quickly at a fraction of the cost. It’s a simple and convenient way for us to support our Fazoli’s family.”

Fazoli’s estimates that, at its current rate of use, enrolled workers will receive cash advances in the upcoming year totaling $800,000.

Workers have used the early paychecks for day-to-day necessities, the chain said, with 20% of cash advances used to pay bills, 17% spent on transportation and 15% devoted to food.

Fazoli’s joins a number of chains in adding an instant pay option, including Noodles & Co, Flynn Restaurant Group, Burger King, Taco Bell and more.

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