Restaurant and Food Service Blog

The state of the economy has been a source of concern for many during the past year, to say the least. Almost every industry has experienced cutbacks, downsizing, and every other word that makes the average professional lose sleep at night. That is, except for the restaurant industry.

If there is one thing to be thankful for during this time, and it’s a big one, is that you have chosen to work within an industry that remains virtually unchanged by the current economic climate. In fact, according to the National Restaurant Association, the restaurant industry is one of the nation’s largest private-sector employers, with a total of 12.8 million employed today and an expectation of adding 2 million more new jobs between 2007 and 2017.

So, the question now is: Will the predictions prove true or will the restaurant industry feel the impact of economic woes? To answer this question, we need to evaluate the trends that could present the biggest challenges, a task we take on here in this outline of restaurant industry employment expectations for 2009.

Hourly vs. Salary

One of the most notable trends that has been occurring and could be on the rise as we get further into the New Year is the practice of bringing on more hourly employees. Salaried workers are locked in, so to speak, whereas hourly workers offer variability. This provides restaurant operators the ability to adjust the amount of workers and their hours according to budget as the climate fluctuates (more in peak times, less in off-peak times).

Decrease in Open Positions

In that same vein, restaurant operators are also beginning to save more money by scaling back on the amount of time employees are working by taking on more work themselves. This means either an hourly cut-back, or worse—an elimination of positions. According to the Daily News of Lower Columbia, “Restaurant owners are laying off their managers and taking on more of the work themselves in an effort to stay afloat. Some are trimming back restaurant hours. They’re also cutting staff at the front of the house.” This, of course, means tighter job markets for both hourly and salaried employees should this trend continue.

Salary Expectations

Currently, PayScale.com lists the average salaries for the following positions:

·      General Manager, Restaurant = $44,725

·      Restaurant Manager = $38,959

·      Restaurant Assistant Manager = $34,258

·      Executive Chef = $52,225

·      General Manager, Food Service = $47,232

·      Food Service Manager = $39,288

·      Kitchen Manager, Restaurant = $40,256

While salaries have been historically increasing at least a small percentage every year across the board, it is not necessarily expected to continue into 2009. According to a recent survey conducted by Outside the Lines, a wine and hospitality consulting firm, salaries are not expected to increase or decrease, but rather stagnate or rise at the rate of inflation.

Keep it Realistic

While the restaurant industry is not likely to get hit near as hard as many others, there are some real factors impacting profits. As long as healthcare, fuel, minimum wage, and food costs are up, cut-backs will be seen within the industry with a noticeable decrease in available positions. The best thing you can do is be realistic about possible influences to job security in the New Year, stay on top of the latest news, and be proactive in your career plan—be prepared now for changes in the future.