Rutter’s, based in York, Pennsylvania, has given its entry-level workers a significant pay bump, now starting at $18 per hour as of 2024. This marks the eighth wage increase in the last four years for the company. In addition to this boost for new hires, Rutter’s plans to implement a 7% average increase in earnings for all employees later this year, as part of its ongoing expansion strategy.
The decision to elevate the starting wage is a response to the challenging job market within the convenience store industry, where attracting and retaining talent has become increasingly demanding. Rutter’s sees this move as crucial to staying competitive with industry peers. The company has substantially increased its starting wages by nearly 75% since 2019, emphasizing a commitment to providing competitive compensation in an environment where labor is a valuable asset.
Suzanne Cramer, Vice President of Human Resources at Rutter’s, highlights the significance of offering competitive wages as a fundamental aspect of being an employer of choice. The move to $18 per hour exceeds the industry average, which stood at just over $14 per hour for both full-time and part-time convenience store workers in 2022, according to NACS’ State of the Industry data.
Wage management remains a delicate balancing act for convenience stores as they grapple with high turnover rates exceeding 100% for both full-time and part-time positions in 2022, as reported by NACS. While competitive pay is a pivotal factor in attracting and retaining employees, it also poses financial challenges. Average wages experienced a notable increase of 9.1% for full-time and 12.6% for part-time employees in 2022, according to NACS.
Rutter’s move to enhance starting wages reflects a broader industry trend. Buc-ee’s, for instance, made headlines in 2023 by setting its starting wages at $18 per hour. Rutter’s, deeply rooted in its family farm heritage predating the U.S., currently operates 85 stores across Pennsylvania, Maryland, and West Virginia. Beyond its convenience store locations, the company has diversified interests, owning a dairy and beverage company, as well as a real estate company.
