Officials at BJ’s Restaurants Inc. (Nasdaq: BJRI), after hearing out employees and observing the adoption of daily pay systems by grocery stores and firms like Uber Technologies Inc. (NYSE: UBER), felt it was time to follow suit.
Daily Pay has “given us a little bit of [an] edge in regards to retaining our employees and being a better option when they look at other opportunities out there for them,” BJ’s Senior VP and Chief Accounting Jake Guild, who spearheaded the partnership, told the Business Journal.
About 50% of the company’s employees are currently signed up for Daily Pay. That percentage grows every month, according to Guild.
BJ’s employees who have opted for the program don’t immediately access their funds for free. Rather, they pay a small fee, which varies by companies’ negotiation terms with Daily Pay. Employees, however, can wait until the morning after their shift to transfer their earnings through Daily Pay without any charge.
BJ’s does not earn any profit from the Daily Pay fee employees pay to access their funds immediately.
The company has spent several millions of dollars to implement a new human capital system as part of the Daily Pay integration, according to BJ’s officials.
Carrick’s Big Bet
Newport Beach’s Carrick Capital Management Co. made what it called its largest investment to date in Daily Pay last year, investing in more than half of its $175 million Series D round.
The New York-based software company by then had earned notable customers like McDonald’s Corp., Dollar Tree and Kroger Co.
BJ’s is the first restaurant chain to roll out the Daily Pay technology on a company-wide basis.
“Their ability to sign up marquee names has been impressive,” Carrick co-founder and co-CEO Jim Madden told the Business Journal in an interview last year.
“We think this market is going to explode. The majority of large employers will offer this service within two years.”