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)

5 Ways the Restaurant Workforce is Changing

#1: Driving middle class job growth

The restaurant industry was a driving force behind the nation’s recovery from the Great Recession. Not only are restaurants leaders in total job growth, they’re also adding middle class jobs at a stronger rate than the overall economy. During the Great Recession, that rate was four times more than the overall economy.

#2: Turnover creeps up

The bad news: Restaurant turnover is trending up. The good news: Current turnover is relatively low, compared to record highs before the economic downturn.

#3: Recruiting challenges

The competition for employees intensifies as the economy improves. More than one in four operators say they have difficult-to-fill job openings. The biggest challenge? Finding applicants for back-of-the-house.

#4: Diverse opportunities

Restaurants provide unparalleled opportunities for people of all backgrounds to own their own businesses. The number of women-owned restaurant businesses is growing at a faster rate than the overall economy, as is the number of Hispanic-, African-American-, and Asian-owned operations.

#5: There’s money in the banana stand. And jobs, apparently.

Coffee, doughnut and ice cream shops are fueling more than commuters and snack attacks. The snack-and-nonalcoholic-beverage-bar segment is had the industry's highest job growth last year.

(via National Restaurant Association)

2016 Restaurant Industry Challenges Continue

The National Restaurant Association projects that restaurants in 2016 will post sales of $782.7 billion and employ 14.4 million people in more than 1 million locations. Released today, the 2016 Restaurant Industry Forecast reveals that the U.S. restaurant industry will remain the nation’s second-largest private sector employer, providing career opportunities for 1in 10 working Americans.

“Though the overall economy is trending in the right direction, the operating environment isn’t without challenges going into 2016,” said Hudson Riehle, Senior Vice President of Research for the National Restaurant Association. “With overall tightening in some labor markets, we’re seeing recruitment and retention making a comeback as a top challenge for restaurant operators.”

Top restaurant industry trends for 2016 include:

• Not all smooth sailing. Restaurant operators will face a number of headwinds in the 2016 business environment. From legislative and regulatory pressures and moderate economic growth, to labor cost increases and cybersecurity, both new and old issues will challenge profit margins and muddle operating procedures.
• Labor pool is getting shallower. Recruitment and retention of employees will re-emerge as a top challenge for restaurant operators, as a tighter national labor market means greater competition with other industries for employees. Workforce demographics are shifting to include a greater proportion of older workers while the younger labor pool is shrinking.
• Everybody’s business. The restaurant industry has always been one where people from all backgrounds have the opportunity to achieve the American dream of owning one’s own business. The restaurant industry is home to a growing number of women-owned and minority-owned businesses, where many current owners started their restaurant careers at entry level. Eating-and-drinking-place firms owned by women and minorities continue to grow at a faster rate than the overall industry.
• Moderate sales growth. The restaurant industry will see its seventh consecutive year of real sales growth in 2016. Substantial regional variations will continue, reflecting local business conditions. The long-term trend of quickservice sales growth outpacing tableservice sales growth will also maintain its momentum, along with strong growth of snack and nonalcoholic beverage bars.
• Technology growing pains. The availability of technology options is starting to move from novelty to expectation among many consumers. In the race to be tech-forward, new systems are popping up in more places as guests say they want to use them. However, two in five consumers say that technology makes restaurant visits and ordering more complicated, indicating that perhaps not all these new systems are as user-friendly as they could be. Restaurants will be focusing on closing that divide in the year ahead.
• Mobile payment gaining acceptance. Few technologies are advancing faster than payment platforms. Security and convenience are converging in mobile payment systems, with a number of wallet apps and devices entering the market. Although a majority of consumers remain on the fence about paying for meals via smartphone, a growing number say they would use – or are already using – that option when available, and the trend is expected to keep its trajectory through 2016.
• American foodie 2.0. The typical restaurant guest today is not the same as the typical restaurant guest 20 years ago. Having essentially grown up in restaurants, younger generations have a very sophisticated world-view when it comes to food. Restaurant operators say guests have higher expectations of their dining experience and pay more attention to everything from diet-specific food, to sustainability, to food sourcing and production than even just two years ago. Operators will carefully balance how to cater to these precise tastes without becoming too niche or alienating more mature guests. 

For more information on the 2016 Restaurant Industry Forecast, including graphics and video, visit Restaurant.org/Forecast.

(via National Restaurant Association)

Restaurant Industry Operations under Growing Pressure to Balance Labor Costs, Big Data and Profits

 

LAS VEGAS, Nov. 9, 2015 /PRNewswire/ -- IQ BackOffice President and CEO, David Schnitt, at the Restaurant Finance & Development Conference in Las Vegas, NV today discussed the "growing trends, challenges and opportunities" facing the industry in 2016 and beyond.

The Restaurant Finance & Development Conference, is one of the nation's largest annual gatherings of restaurant industry operators, management specialists, financial, legal and regulatory experts. IQ BackOffice, a leading global accounting and human resources outsourcer, headquartered in El Segundo, CA will be displaying, sharing and presenting their views on the 2016 trends and challenges facing the industry and the solutions, tools and options that can be utilized to meet them.

"The nation's restaurant industry, an important contributor to the health of the American economy, is facing a 'perfect storm' heading into 2016 of opportunities and challenges, said David Schnitt, President and CEO of IQ BackOffice.  "Restaurant operators are presented with an environment that will require the efficient management of a changing labor market with narrowing margins and growing regulatory pressures – while still needing to achieve growth, profit and scale."

David Schnitt and the experts at IQ BackOffice predict three key trends and challenges that is reshaping the restaurant industry now and well into 2016:

• Focus on Cost Efficiencies and Changing Labor Market. With companies pressed in terms of labor costs, along with increased wages and a lack of employees to fill critical jobs, it's imperative for companies to find ways to reduce costs.  Restaurants should look to leverage solutions that collate costs around food and labor—generally two-thirds of a restaurant's total spending—so that owners and operators can better handle and understand all of the costs that are within their control.
• Leverage Internet Based Analytics and Insights to Deliver Margins. Under tight margins, managing finances needs to be an exact science. Restaurants need to gain more insight into where particular costs are and where they need to target their spending. Fine-tuning information at a more granular level provides restaurant owners with the solutions needed to make strategic, educated financial decisions—all at a lower cost.
• Deliver Growth and Scale. Even under cost pressures, growth is still possible, but restaurants must efficiently manage growth and scale options at a low cost. Restaurant owners need to realize their financial state holistically to set the right trajectory for profitable growth.

For more information, please visit IQ BackOffice onsite at Booth 620.

About IQ BackOffice IQ BackOffice is a global leader in business process outsourcing, delivering customized solutions for its clients and boasting 99.97% quality and up to 68% cost savings. By reengineering existing processes such as accounts payable, accounts receivable, payroll and human resources, IQ BackOffice reduces costs, enables better decision-making and creates stronger financial controls. Clients range from mid-sized to multi-billion dollar private and public companies, across industries such as restaurant and hospitality, real estate and property management, manufacturing and distribution, telecommunications, utilities, energy, financial services, professional services and others. IQ BackOffice is majority-owned by LiveIt Investments Limited, the holding company for Ayala Corporation's investments in the business process outsourcing sector. Ayala was established in 1834 and is one of the leading conglomerates in the Philippines. For more information about IQ BackOffice's wide range of services, please visit http://www.iqbackoffice.com/.

For additional information, please contact: Alyssa Scott Burson-Marsteller +1 212-614-4012 press@iqbackoffice.com

(via PR Newswire)