Can you please tell me why employers at a major restaurant chain will pay an experienced cook close to what they were making at 17 an hour?

Experienced cooks are in short supply.

Its a free market.

The experienced cook is likely well worth what he is paid.. And if they cannot match the pay rate he wants, he will look elsewhere. They are paying for that experience.

The 20 yr old does not likely have enough knowledge, experience or skills to negotiate a "few dollars".... With good work ethic, good attendance.. Maybe you can negotiate a quarter or a 50 cent raise.

ANY business, be it a restaurant, retail or a professional will pay what the market will bear to (hire) someone to better their business.

But many times employees become complacent, thus even if they had asked for raises over the years, may not have gotten, since they know that will stay. I (think) the average is 2 years that employees quit or find another job making much more than the prior job.

If experienced, then should know what the market pays, thus ask for that amount to hire them. If not, then the new employee will find another company to pay for their experience.

I remember years ago (about 25 years) that I had been trained in insurance and I heard (new) employees with (1 or 2 years experience) bragging that by leaving the old company and now working in (my) company, that when they were hired was now making $5,000 more per year.

So over the next 10 years I worked for 4 different companies, I ended up making almost DOUBLE what I had been paid from the beginning. (I made $22,000 and made over 45,000 when I left)

Back then, the (average) was 4% per year and I did the calculations and at 4% for that time, would have gained less than 50% more or about $29,000 by changing jobs.

So your friend needs to find another company to pay his worth. Then once the other company offers him a job, then goes to his (current) employer and state company A wants to hire me at (X) amount, so then if current wants to keep him, then they will pay him what company A, or lose that employee.

There's no such thing as "what he should be making". It's a free market, and that includes labor. If you put in your two weeks notice saying that you can get 17 across town, they would instantly give you a raise to keep you. And if they don't, then go across town and get the 17. You win either way.

Employers pay an employee based on what they feel the employee is worth to the business. A restaurant is about the food. If the food is not good sooner or later the restaurant becomes an empty building. If the person that has been there for 20 years thinks they are worth more than they are earning, they need to show the employer they are and then ask for it.