Restaurant and Food Service Blog

Going green has gone from a catch phrase to a way of life. The concept has infiltrated almost every aspect of the everyday and businesses have smartly tuned into this, adjusting processes from the back to front end. Here, we examine a few great examples of how select companies are making this work for them, how your business can do the same, and primarily how adopting this approach will be the key to a successful recruiting and retention strategy from now into the future.

Score for the Environment

Climate Counts is a nonprofit organization developed for the sole purpose of bringing together consumer and companies in the fight against global warming. Each year, the firm announces the results of its annual Company Scorecard, a process whereby companies are rated on their greenhouse efforts and making that information applicable to consumers. Its second annual results, released in late spring of 2008, revealed that Google, Anheuser-Busch and Levi Strauss had the largest score improvement, each jumping over 20 points from the year before. Nike was ranked No. 1, while 84% of the scored companies all made improvements in their efforts.[i]

Wrapping It Up

A prominent factor of food service is packaging. From to-go cups, to portable trays, to the bags in which they are carried, all are components requiring a second look by establishments and especially the manufacturers with whom they choose to do business. A great example of a recent evaluation and complete restructuring of process and approach is that provided by Freshens, the frozen yogurt and smoothie chain. Just this past fall, the company revealed its latest sustainability initiative, the “ecotainer.” The company recognized that the billions of plastic, paper and foam cups purchased each year were not recyclable. So, they went out to bid in search of a manufacturer that could produce a fully-compostable cold cup. They found just that and have launched the first-of-its kind in the United States.

Food Service Application

Going back to the results of the Scorecard produced by Climate Counts, we find that “the Food Services sector had the lowest average (11.5 out of 100) of any of the eight sectors measured with smallest overall improvement.”[ii] And, according to an article earlier this year in USA Today, “Restaurants are the retail world’s largest energy user. Nearly 80% of the $10 billion dollars that the commercial food service sector spends annually for its energy use is lost in inefficient food cooking, holding and storage, says PG&E’s tech division.”[iii]

Imagine what could be accomplished if each establishment took this on as a personal challenge to make one significant process change in the New Year. How much of an impact could be made on our environment? It’s up to you to do just that. And not only would you be improving your world, but your business appeal would increase as well. According to research conducted by Harris Interactive, 1/3 of workers said they would accept a lower salary in exchange for working for a green company.[iv]

For ideas on conservation and a “greener” way of running your food service establishment, visit www.conserve.restaurant.org.

The day after the election, the market plummeted in what analysts surmise was in anticipation of the challenges the new administration will have to face once it takes office in January including unemployment, the war in Iraq, and the economy in general. Was it a bad sign for things to come? Probably not. Daily Markets said that “investors must have felt the after-election fall wasn’t completely justified,” as the markets railed just three days later.

So what are the realistic expectations we should have about how employment will be affected by the new administration? Here we take a look at what is being said, what promises are being made, and what is realistic given our nation’s current situation.

Unemployment

In October 2008, we reached the highest unemployment rate our nation’s seen in 14 years. There are a huge amount of catalysts that can be blamed for this occurrence, but the bottom line is that all of them together made for the perfect storm – eliminating a total of 1.2 million jobs since January 1. While the restaurant industry has yet to feel as big of an impact from these conditions, as I have said in some of my other articles, the effects, to some degree, will be felt by all before this is all over. So, let’s take a look at what the administration is saying now about the problem and what you can expect in the near future.

The Plan from the President-Elect

On Friday, November 7, just three days after his historic win, Obama met with 17 high-level economic advisors to discuss the economy, and especially the state of employment. They primarily discussed the loss of an astounding 240,000 jobs in the service sector in just the month of October. Economist for Goldman Sachs, Jan Hatzius, said, “The U.S. labor market has moved into full recession mode with payrolls dropping sharply—and more than generally expected—in October and, on revision, in September as well.” What’s more, Goldman Sachs announced that the unemployment rate could reach as high as 8.5pc by the end of 2009. 

With this, Obama has said that the current state of economy is an urgent reminder of the need for swift action. In his first news conference on the afternoon of November 7, Obama said, “Immediately after I become president I will confront this economic crisis head-on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity.” To do so, Richard DeKaser, chief economist for American regional bank National City said, “This is going to increase the urgency for another stimulus package to staunch the slide.”

Expectations?

With all this said, what should your realistic expectations be about the job market? In my mind’s eye I see us with a difficult road ahead. I think it is going to get worse before it gets better, as predicted also by Goldman Sachs. When a movement such as a major bailout occurs, it takes a while for the domino effect to make its way around, so we need to be patient, as consistently reminded by the White House. There is relief in sight, but recovery from something like this takes time. My best advice is to stay informed and to formulate a back-up plan for your career. Don’t wait for the chips to fall – anticipate them before they do and be prepared with other options.

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.