Remember when you were younger and you were just dying to get
that job flipping burgers at McDonald's or that busboy job at a nice restaurant?
If you recall, there were probably 6 people in front of you applying for the
same job. Well, now the opposite is occurring. Due to the increase in
baby-boomers, the 1.4-kid family and a propensity to dine out frequently, there
are more tables where you can get your food but nobody around to wait on those
tables.
Behind the Numbers
It is estimated by the year 2005 that restaurant expansion will generate 3
million new jobs in an industry that already has 9 million jobs which are
difficult to fill. The pool of people targeted to fill these jobs is also being
drained by demographic changes and increased competition from other employment
sectors. Hence, the question - what can be done about the labor drain and its
effect on service as we enter the new millennium?
The reason for the lack of a labor pool appears obvious - there simply are not
enough people to fill jobs in a growing hospitality market during a time when
the economy is good and unemployment is low. The unemployment rate in the United
States is 5.23%, in Pennsylvania it is 5.0% and in Philadelphia it is 5.7% as of
the third quarter of 1996. There are certain issues which follow that tell the
story behind the numbers and the labor drain. They are:
Image - Many people look at jobs in the restaurant industry as transient jobs, not career-type jobs. They view these jobs as in-between one career move to the next.
Competition - Somewhat linked to image, restaurateurs are finding competition for employees from sectors that often pay more than the restaurant industry. Within the service industry, casinos can generally pay more per hour than restaurants. Additionally, service-related jobs such as tele-marketers offer good hourly rates and a major difference (some may call it an advantage) over restaurant jobs - you get to sit down while you work.
Employee attitude - Because employees understand the labor drain and the owners' needs for good help, they have the opportunity to demand what they want and, if they do not get it, can walk to the next place which will gladly accept them.
Work environment - No longer can you overwork employees. With emphasis on health and fitness and the reduction of stress, quality of life is a factor which must be considered.
The high growth in casual dining - The current restaurant development trend, casual, but upscale, has led to a hiring boom.
Uncle Sam - The IRS' crackdown on under-reporting of servers' tip income has not made the hourly wage plus tips pay as attractive as it used to be.
By the year 2000, the U.S. Census Bureau projects, the pool of
Americans aged 15-24 is anticipated to increase only 0.2%. The segment of
Americans aged 25-34 will actually fall 11.1%. As this potential labor force for
restaurants shrinks, the group of Americans aged 35-54, which constitute the
majority of demand for restaurants, will be almost two-thirds larger in 2000
than it was in 1990. This segment will account for 60% of foodservice spending.
What Can We Do About It?
What can restaurant operators do to deal with the labor drain? Here are a
few suggestions:
Get a better understanding of employees' needs - Be aware of the attitude that employees are looking at quality of life more which includes looking at other things than just a paycheck. Communicate with them and convince them that decisions made are in their best interest as well as the interest of the operation.
Market employment opportunities as career paths - Just don't advertise you have jobs, try to show a prospective employee how they can grow, not just in your restaurant operation, but in a career in the foodservice industry.
Money talks - Fattening paychecks is always a nice carrot to get people in the door. Chances are the fatter the paycheck, the more reliable and efficient worker you will get - which are major ingredients in providing better service.
Develop an employee incentive hiring program - Network with your employees and give them an incentive (usually monetary) for referrals.
Look at different labor pools - It may be necessary to hire more people with disabilities, more senior citizens or more minorities.
There's no doubt about it, plugging the labor drain is a constant challenge in the foodservice industry. Things being done at the national level include the National Restaurant Association retaining a public opinion study in order the enhance the image of foodservice industry jobs. Also, you can follow the suggestions listed above at your restaurant to plug the labor drain.
Restaurant Advisory Services provides
full-service consulting services to the restaurant and hospitality industries.
In existence for more than six years, the firm offers a full menu of advisory
services focusing on every aspect of the life cycle of restaurants and other
hospitality organizations, from pre-opening and conceptual planning, to
day-to-day operations, to design and brokerage.