Foodservice Equipment Distributors Assoc.’s Post

The recovery of restaurant employment to pre-pandemic highs and the simultaneous slowing of wage growth and turnover indicates a clear, if slight, loosening of the national restaurant labor market. This likely means that workers are losing some power to demand high wages and exercise discretion in job choices, a sign of a shift in market power towards employers.

In restaurants, turnover is down, employment is steady and wage growth is moderate. Taken together, these indicators from the Bureau of Labor Statistics show the restaurant labor market is near pre-pandemic dynamics.

With restaurant employment back at pre-pandemic levels and wage growth and turnover gradually slowing, the balance of power in the restaurant labor market is likely shifting to be more favorable for employers. 

As restaurant industry employment levels stabilize at pre-COVID levels, volatility in hiring and retention is slowing -- especially for lower wage workers. See the latest statistics. Creating a more sustainable and attractive workplace for our employees is vital.

Key Takeaway: Bargaining power starting to shift back to employers due to slowing turnover and steady unemployment. Personal Takeaway: In the last decade, having the opportunity to work for (now two) great Restaurant Brands that have great Culture and a “Team/Crew first” menatility, it’s been a relief to be the “exception” and not the “rule” when it comes to these types of industry specific labor statistics. Be the Preferred Employer through great Culture, best in class Leadership, robust Company Incentives, and REAL growth opportunities to retain great people and attract new talent. This is how it’s done, folks!

The Bureau of Labor Statistics recently released some promising numbers showing that “the number of Americans employed in food service increased by 61,000 in the month of September.” The report also showed that food service and hospitality workers accounted for most of the jobs added in the leisure and hospitality sectors. #FoodService #Report #HospitalitySector #Jobs #JobMarket

Restaurant workers' wage growth has slipped considerably since the end of the COVID-19 pandemic, falling below even pre-pandemic rates. That's per Square's new third quarter restaurant industry report, and includes base wages, tips and overtime. It's a sign that restaurants are no longer quite as desperate for workers as they were during the late pandemic era, when many struggled to replace employees who had left for other industries during the pandemic slowdown. It's also a reflection of inflation's impact on restaurants and consumers alike. Restaurant workers' wages grew 4.9% year over year in October 2023. That's slowed from peak growth of 10.5% in December 2021, when the average base wage was $12.60 and average hourly earnings totaled $15.85. Restaurants' costs are up due in part to inflation, while consumers are often loathe to pay higher prices because they're also getting hit with higher costs on basically everything in life. Discretionary spending on dining out is often the first thing to go when times get a little tougher — and tips may be shrinking, especially amid a growing sense of "tipping fatigue." Wage growth is best considered alongside inflation — if your wage grows 3% but so does inflation, your wage didn't really grow at all. The inflation rate was 3.2% in October 2023. Some of what's happening here is also being driven by the fact that most of America's downtowns still haven't fully recovered from the pandemic — meaning there are fewer people visiting bars and restaurants in many cities, and thus fewer bills and tips. "Compared to January 2019, downtown neighborhoods in American cities appear to have flatlined at roughly 72% of their pre-pandemic activity as of the end of September 2023," per Square's report. Yes, but: Restaurant workers in some cities are thriving, comparatively speaking. Cincinnati, Las Vegas and Jacksonville all saw particularly notable wage growth in October, per Square. Vegas also happens to have more foot traffic now than it did pre-pandemic, per separate research based on mobile device activity — so no doubt revived tourism is driving a relatively healthy restaurant business there as people flock to casinos, Golden Knights games and The Sphere.

Curious about the latest in the restaurant industry? We've got the answers! 🔹 Job Market Trends: Is the restaurant industry adding or shedding jobs? Dive into the latest employment trends and find out how the sector is evolving. 📈 🔹 Sustainability Moves: Guess which quick-service restaurant is venturing into solar energy? 🌞 🔹 Pay Raises for Tipped Workers: Big cities continue to support restaurant workers with significant pay boosts. For instance, tipped workers in Chicago just saw their minimum wage increase to $11.02 per hour from $9.48, thanks to a new ordinance. Over the next five years, this wage will keep rising by 8% annually until it matches the city's standard minimum wage. 💵 Stay informed and see how these changes are shaping the foodservice landscape! 👉 Read more about these updates and more! #FoodserviceNews #RestaurantIndustry #JobTrends #Sustainability #EmployeeWages #Chicago https://lnkd.in/gDqEnDvs

When paying more is better for business... "When employers have too much power in the labor market, they can (and do) pay workers considerably less. Workers take the low-paid jobs, but those artificially low wages lead workers to quit when they find better-paying options. Maintaining staffing levels becomes more difficult for employers.  By raising pay to meet the higher minimums, fast food restaurants are better able to attract workers to fill the vacant jobs. And those workers stay longer." https://lnkd.in/gXJqYSBZ #minimumwage #restaurantworkers #restaurantnews #restaurants #qsr #labour CalMatters

Hourly wages are getting silly. So is inflation. McDonald's is a wonderful first job for a teenager. It's probably not the optimal job for a parent with a couple of kids. Occasionally, as recruiters we refer to fast food wages as a comparison or benchmark as a wake up call for out-of-touch employers that want to pay low-ball wages. Fact: The upshot is higher fast-food wages push up factory wages, as well as non-degreed administrative wages. #TheHeadhunters #headhunters #jobsearch #jobseekers #jobopening #jobs #hiring #employment #careers #recruiter #candidates #wages #inflation #minimumwage