Italian-themed pizza chain Prezzo is to close all its branches for a day and give staff a 4% pay rise as hospitality businesses battle to keep staff.
All branches will be closed on Boxing Day this year and all 2,500 staff will see their pay go up by an average of 4%.
Wages for managers will go up even more.
Prezzo is the latest company to boost staff wages as shops, bars and restaurants fight to recruit and keep staff.
And the chain is the latest to say all branches will be closed on Boxing Day - following shops including Sainsbury's, Poundland and Marks & Spencer.
Prezzo says it wants to encourage staff to say with the company.
In a statement, the company said: "As a result of the increases, every Prezzo team member will be paid above the national minimum wage," a statement said.
Itsu recently announced it is giving all instore workers an 11% pay rise and Costa is giving staff a 5% pay rise.
Ocado, Aldi and Waitrose have all increased lorry driver wages, and Tesco has offered £1,000 joining bonuses, reports the BBC.
Karen Jones, executive chairwoman of Prezzo, said: "Every part of the industry has felt the strain and at the front line stand our wonderful teams, front and back of house, of whom we are so proud.
"Making sure we get pay right is a pre-requisite; ensuring our Prezzo people feel valued and cared for is equally as important."
There are 134,000 jo vacancies in the hospitality sector across the UK.
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