Restaurant industry adds jobs in June, but keeps tabs on technical fixes

The restaurant industry added 40,800 jobs in June and now employs 11,938,000 workers, a figure that has increased by 27% since June 2020, but remains around 700,000 below the thresholds by COVID, according to Bureau of Labor Statistics The data.

Overall employment in “leisure and hospitality”, a category that had 67,000 jobs in June, is down 1.3 million, or 7.8%, from February 2020.

The country’s unemployment rate held steady at 3.6% for the fourth consecutive month and the number of unemployed was virtually unchanged at 5.9 million. Before the pandemic, these figures were 3.5% and 5.7 million respectively.

Unemployment rates in the hospitality industry, however, fell from 10.9% to 5.2% year-on-year. Wages in the leisure and hospitality sector rose 0.2%.

Zhong Xu, co-founder and CEO of Deliverect spoke with RSQ on the current state of labor and inflation as the summer progresses.

How will inflation and rising food costs impact the entire restaurant industry?

From now on, and likely for years to come, valiant efforts will continue to be made to maximize profits to help revive the hospitality industry and its contribution to the economy. We will continue to see more and more restaurants incorporate review management into their business model, to closely monitor profit levels and how best to increase profits, especially as inflation takes center stage. from the scene.

Restaurants need to boost customer retention and conversion levels in order to increase their profits. For this reason, we can expect a rapid increase in the frequency of promotions and discounts throughout the year, and not just during seasonal periods.

When it comes to food cost, menu engineering is a powerful strategy that combines psychology, data, and design to ensure that every item on a restaurant’s menu is popular and profitable. In fact, menu engineering can increase profits by 20%. For example, restaurants can promote top-selling, high-margin dishes and eliminate cost factors from the menu. If restaurateurs are unwilling to drop a menu item, they should try changing the price or switching to cheaper ingredients.

Restaurants will also look for ways to mitigate the impact of inflation by reducing operating costs through the deployment of technology and automation.

How can technology support restaurants in need of employees?

Restaurants continue to face staffing challenges and should be looking for ways to use employee time as efficiently as possible. Many restaurants assign one of their employees to online ordering, accept delivery and takeout orders on aggregator tablets, and manually enter them into the restaurant’s POS system. This manual task, which requires both time and manpower, creates a delay in the flow of orders. Manual double punching of orders also creates a backlog in the kitchen, as kitchen staff only receive orders once they have been created at the restaurant outlet. Once the kitchen receives the online order tickets, they all look different depending on the specific layout of the delivery service tickets. Enter confusion – and even slower delivery times.

Another problem with re-entering commands is that it is error-prone. Making mistakes is only human, but errors in the customer’s order will lead to complaints, frustration, lost revenue and recurring business.

By automating the online ordering process, you can eliminate human error and free up time for staff to focus on improving the customer experience. With orders sent automatically to a restaurant’s point of sale and tickets printed in the kitchen in a consistent format, all operations will run much more smoothly and contribute to a restaurant’s bottom line.

How can brands manage high revenue and drive efficiencies?

There are many vacancies across the country and the pandemic has been the main driver of the labor crisis in the industry. There is currently, and unfortunately there will continue to be, a challenge with maintaining healthy retention levels of staff working in the hospitality industry. Recruiting new staff will also be difficult, with the growing number of vacancies in the hospitality industry. To help combat this, restaurants need to have strong employee recruitment/referral programs in place, so positions can be filled quickly when needed. Restaurants also need to raise salaries and offer employee incentives where they can to retain employees in such a competitive market.

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Cecil N. Messick