Another restaurant chain is feeling the pressure to raise wages.
Domino's Pizza (DPZ) chief executive Patrick Doyle told CNBC on Monday that the chain needs to raise wages to keep hiring competitively, following announcements from other low-paying employers that they'll hike wages.
While Doyle didn't announce that the company is putting higher wages into effect, he noted that the impact of a stronger economy is a tighter labor market. Like McDonald's (MCD), which earlier this month said it would increase the average hourly wage at its company-owned stores, Domino's relies on a franchisee system, which would places wage decisions in the hands of local owners.
"The reality is the labor market is tightening up, and we've got to respond to that. It's getting harder to hire people," he said. "We've got to do what the market demands to get the right people for our business."
Domino's owns about 400 locations, or only about 10 percent of the chain's total locations.
Some of Domino's employees make close to minimum wage, with its delivery drivers earning about $7.50 an hour on average, according to employment site Glassdoor. That's barely above the federal baseline wage of $7.25 an hour.
Labor activists have been pushing for a $15 minimum hourly wage for fast-food workers, as well as other low-paid employees such as as home health aides and retail workers. Since the Fight for $15 campaign began more than two years ago, there have been signs of change, with 21 states raising their minimum wages at year start and big employers like Walmart pledging to hike worker pay.
There's another tailwind helping workers earn higher wages: A stronger job market, as Doyle noted. He said he believed last week's jobs report, which found employers only added 126,000 jobs in March, was a "blip."
"We've got to do what the market demands to get the right people for our business," he said. "We've got to pay more."