50% of Quick Service Restaurant Jobs Filled By First-Time or Promoted Workers

Restaurants continued to add jobs at a steady pace in February, and a sizable proportion of these job openings are being filled by either new entrants to the workforce or people being promoted from other positions within the same business, according to the NRA’s Chief Economist Bruce Grindy. His Economist’s Notebook commentary and analysis appears regularly on Restaurant.org and Restaurant TrendMapper.

The national labor market continued to expand at a moderate pace in February, according to figures released today by the Bureau of Labor Statistics. The economy added a net 242,000 jobs on a seasonally-adjusted basis in February, which is generally on par with the average gains during the last six months. 

The restaurant industry remains one of the steadiest contributors to private-sector growth, with the 40,200 net new jobs added in February representing the ninth consecutive month with gains of at least 20,000 positions. 

While the industry added middle class jobs at a rate four times stronger than the overall economy in recent years, it also maintained its role as the training ground for America’s workforce. 

For new entrants to the labor force, the restaurant industry is one of the most common landing spots. In fact, roughly one-third of all U.S. adults say their first employment experience was in the restaurant and foodservice industry. 

According to new NRA research that appears in the 2016 Restaurant Industry Forecast, restaurant operators reported that roughly one in five of their job openings in 2015 were filled by people for whom this was the first regular job that they have ever had.

The limited-service segment was the most likely to hire new workers, with 30 percent of quickservice openings and 25 percent of fast-casual job openings going to people getting their first work experience. 

Approximately one in six jobs at family-dining and casual-dining restaurants went to first-time workers in 2015, while eight percent of openings in the fine-dining segment were filled by new entrants to the workforce.

In addition to providing employment opportunities for first-time workers, many jobs are also filled by people advancing from other positions within a restaurant, typically because of the on-the-job training and knowledge of the business that they obtain from those roles. 

In 2015, approximately one in five job openings were filled by people who were promoted from other jobs within the same restaurant business. This trend was strikingly similar across each of the five major segments, with the fast-casual segment only slightly ahead of the others at 23 percent.

All told, roughly one-half of limited-service restaurant job openings in 2015 were filled by either new entrants to the workforce or people being promoted from other positions within the same restaurant.

(via National Restaurant Association)

Valuable Tax Credits for Hospitality Workers

Get the word out to employees and customers who could benefit from the Earned Income and the Child Tax credits, which reduce the amount of income tax workers owe. Workers who don't make enough money to owe taxes can still qualify for the credit, but they must file tax returns to claim the credits.

Earned Income Credit
The EIC is a refundable, federal income tax credit for full- and part-time workers who fall below certain income thresholds. Employers must notify employees for whom income tax was not withheld at any time during the year and are encouraged to notify employees whose wages for 2015 were less than $53,267 that he or she may be eligible. The EIC can be worth as much $6,242. Singles who raised children and earned less than $47,747, or those who are married filing jointly, raised children and earned less than $53,267, in 2015 can claim the credit, as well as singles not raising children who earned less than $14,820 last year or, for those who are married filing jointly, $20,330.

Some workers with children choose to receive part of their EIC payments in advance as part of their regular paychecks and the rest after they file their annual tax returns. Individual taxpayers who earned less than $39,131, or those married filing jointly who earned less than $44,651, with at least one qualifying child are eligible.

Child Tax Credit
The Child Tax Credit is worth up to $1,000 for each qualifying child under 17. The tax credits can help employees pay for childcare and cover other day-to-day needs. Families who earned at least $3,000 in taxable income in 2015 are eligible.

Employer assistance
The Center for Budget and Policy Priorities offers free posters, fliers and paycheck inserts for employers. Color posters are available in English and Spanish, and fliers are available in 21 languages. Get more information at 202-408-1080. Download thematerials, and get tips to promote the tax credits.

The Internal Revenue Service also offers an employer toolkit with outreach tips, posters, payroll stuffers, and social media tools. 

Free tax help
The IRS offers free electronic filing and assistance through the Volunteer Income Tax Assistance Program, a partnership with community-based organizations. Workers who earned less than $54,000 in 2015 are eligible, as well as people with limited English-language skills, people with disabilities and the elderly. Taxpayers can call 800-906-9887 to find a VITA site near them. The IRS helpline at 800-829-1040 is set up to answer taxpayer calls about credits or other tax issues. 

(via National Restaurant Association)

Ways to Reduce Restaurant Turnover

Retaining and keeping employees happy has always been a challenge in any industry. It's both time-consuming and costly to keep hiring, so it's in your best interest to retain staff for longer periods of time. Here are some ways you can reduce the rate of turnover at your business: 

#1: Establish specific goals for new hires.

Refresh your new hires of their responsibilities on their first work day. Make sure they understand their duties and that they are able to accomplish them. Create goals for them to achieve, so they stay on task and are motivated. During the first week, sit down to discuss what you want to see from them after 30, 60, 90 days and beyond.

#2: Assign mentors to junior-level staff.

Mentorship is key across all fields, but especially so in the restaurant industry. Assign a mentor to a each new hire. The senior staff will have more experience and will be able to guide juniors around the restaurant, answer questions that they may have and provide moral support. 

#3: Allow time for team bonding.

Set aside time for the entire team to meet each other and interact during non-working hours. Consider breakfast or dinner outings as a group once a quarter, so staff can build relationships. Employees that develop workplace friendships feel happier with that they are doing, which definitely helps retention.

#4: Encourage and praise great work.

Take notice of the exceptional work done by your employees. By providing positive feedback, staff will feel a sense of achievement. Also, they will know that they are appreciated and able to contribute greatly to the business. Employees like feeling they are valued, or else, they will feel like they are not needed and thus, try to find a new job.

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Tips on How To Be a Successful Restaurant Owner

Behind every great restaurant is a great restaurant owner. In order for your restaurant to become a success, you'll need to be an effective leader for your team. Here are four key pieces of advice on how to be a successful restaurant owner: 

Listen to your staff.

Your staff, especially the front-of-house team, interact with customers on the daily. They have a first-hand account of what the dining hall is like, and what can be improved so that they can serve guests better. Hear your employees out by holding sessions where they can voice out their concerns. Stay close to them, so they feel comfortable enough to share their ideas.

Your guests are equally as important.

Like your staff, your customers' feelings should not be overlooked. Include a suggestions/comments card along with the bill, so that diners can rate their experience, the service, the food and other items that you want to know more about. Gather the cards and analyze them to see if there are any particular patterns. Publish the results, then have your staff go through them. Review the information as a group, as well, so that everybody understands what needs to be fixed.

Leave room for growth and expansion.

Keep in mind you cannot rush success. It is possible that your restaurant can expand in physical size/scale and you might need to hire more staff. Also, realize that at a certain point, growth and sales will slow down. Be sure to have a back-up plan or ideas on how you can help grow the business. Maybe consider opening a second location, or even relocating. If not, what about reworking your restaurant's concept, menu, etc.?

Remember your role as the leader.

As the restaurant owner, be sure that you lead by example. Conduct yourself as a person that is hard working and dedicated to the restaurant. When your employees see that, they will be encouraged to be so too. You want your staffers to know you as somebody that is strong and dependable.

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5 Reasons The Restaurant Industry Is In Good Shape

The restaurant industry started the year off weak, at least based on sales indices. Black Box Intelligence said same-store sales fell 0.8 percent for the month. According to MillerPulse, same-store sales increased 1 percent. Both were the weakest figures in years.

But both numbers mask what was, in reality, a good month for the industry and what could be the start of a profitable year. Here’s why:

The two-year trend is still strong. Both MillerPulse and Black Box were comparing themselves to a January 2015 that was the strongest month in recent years thanks to a run of stupid good weather. So sure, January’s sales weren’t quite as good as the previous year, they were still quite good on a two-year basis. MillerPulse’s two-year same-store sales trend of 6.3 percent was the strongest for that index in two years. For Black Box, the two-year trend is 5.3 percent. Two-year trend numbers factor out one-time events like weather that can influence a single year’s same-store sales.

Overall sales were stronger. According to recent federal data, sales at food services and drinking places increased 6.1 percent in January, to $53.5 billion. Federal data tracks all sales, rather than same-store sales, and so it can account for increases in sales from new units as well as independents. Overall retail sales excluding auto sales, by comparison, increased just 2.5 percent. Sales at grocery stores, 2.3 percent.

Restaurant owners are hiring. This is the best indication of an industry still in expansion mode. Restaurateurs hired 46,700 workers in January, or close to one out of every three jobs the economy created in the month. Over the past year, the industry has added more than 380,000 jobs. What’s the point of adding workers if you don’t think your business will need the added labor?

Gas prices are still ridiculously low. Gas prices averaged $1.70 per gallon as of Tuesday, according to AAA. While that’s a bit higher than it was a week ago, it’s still 60 cents per gallon cheaper than a year ago. Gas prices are expected to be low for some time, as long as there remains a glut in oil, putting money in the pockets of more consumers. When consumers get more money, they really want to spend it on dining out.

Food costs are coming down. These additional sales are coming as beef costs finally join other commodities in deflating. Lower prices for beef, pork and chicken should make for a more profitable industry in 2016. Indeed, Texas Roadhouse executives said on the company’s earnings call Monday that they expect higher margins this year thanks to more sales and lower food costs.

None of this is to say that there aren’t challenges in the industry. But barring some major calamity, it appears this could be the best year for restaurants since the start of the Great Recession.

(via Nation's Restaurant News)