Applebee's franchise exec fired after leaked email about gas prices, wages

An Applebee's franchise executive was fired after sending an email to managers saying high gas prices could allow them to pay lower wages. Photo by Ezio Petersen/UPI | License Photo

March 29 (UPI) -- An executive for a Midwest Applebee's franchise has been fired after suggesting in a leaked email that higher gas prices could turn the labor market in employers' favor.

Wayne Pankrantz, who was director of operations for Apple Central LLC, said in the widely distributed email on March 9 that high gasoline prices will put pressure on employees' disposable income -- and that could present an opportunity for managers to lower wages as employees seek more hours.

He wrote: "Most of our employee base and potential employee base live paycheck to paycheck. Any increase in gas price cuts into their disposable income. As inflation continues to climb and gas prices continue to go up, that means more hours employees will need to work to maintain their current level of living."

The email, which has since spread online, was first circulated among employees -- including some who quit their jobs after seeing it.

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"The individual has been terminated by the franchisee who owns and operates the restaurants in this market," Kevin Carroll, chief operations officer at Applebee's, said in an emailed statement to CBS News.

Carroll added that Pankrantz's email was "the opinion of an individual, not Applebee's." He said that the company's employees "are the lifeblood of our restaurants, and our franchisees are always looking to reward and incentivize team members, new and current, to remain within the Applebee's family."

Scott Fischer is director of communications for Apple Central, which is located in Kansas City, Mo., and has 47 Applebee's restaurants in the Midwest. He called the email "embarrassing."

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Meanwhile, Applebees's Facebook page on Tuesday included criticism of Applebee's as some people attached links to the leaked email by Pankrantz.

Applebee's, founded in 1980, is owned by Dine Brands Global, Inc., which also owns the IHOP brand.

The parent company says it has over 3,400 restaurants combined in 16 countries and approximately 350 franchisees.