FSR September 2022

FirstCourse

THE IMPORTANCE OF HIGHER PAY

AS THE LABOR SHORTAGE SETTLES INTO A NEWNORMAL, restaurants are exploring ways to build a sustainable pipeline of talent. Overall, it’s an uphill battle. Per the Bureau of Labor Statistics, 6.9 percent of hospitality and restaurant workers quit last November, a percent age that’s more than twice the national average. Higher wages and improved working conditions could help attract strong candidates and also curry guest support. According to a report by Mintel , 82 percent of consum ers consider living wages to be an important initiative for restaurants . Moreover a third (33 percent) take res taurant employee and farmer welfare into account when making food and beverage choices.

Check, Please?

Inflation is impacting consumer spending across the board, but its effect on restaurant check averages is especially striking. Software firm Lightspeed Commerce found that while inflation was pacing about 0.98 percent per month, it was growing at a rate of 1.15 per cent for average check sizes. Although oper ators have been forced to raise menu prices, Lightspeed attributes the quicker-than-aver age increases to accelerating food costs, meaning restaurants are absorbing much of these higher costs and thus watching their already thin margins shrink further.

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SEPTEMBER 2022