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Restaurant hiring expectations on the rise

Restaurant hiring expectations on the rise

DALLAS The employment picture is brightening for the restaurant industry, according to the most recent People Report Workforce Index.

The more than 80 restaurant companies that participated in the most recent survey said they are expecting to hire more employees or maintain their current staffing levels in the second quarter of 2009, signifying expected job growth in the industry and signs that an economic recovery may be on its way, said People Report officials.

“Couple that with some other things, such as the decline in job losses, and it looks like the worst is behind us,” said People Report analyst Michael Harms. Dallas-based People Report studies the human resources practices of its member companies.

The index revealed that after posting job losses of 27,000 in November and 25,000 in December, the foodservice industry shed only 9,000 jobs in March.

Employment expectations among operators who participated in the survey rose to 55.4 for the current second quarter. With the exception of fine dining, all industry segments experienced an increase in employment expectations, with 26 percent of companies saying they expected to add hourly positions and 61 percent saying they would maintain their current staffing levels. At the management level, 20 percent said they expected to add staff, and 64 percent said they anticipated no change.

“We think it’s good news,” said Joni Thomas Doolin, People Report's founder and chief executive.

Companies that participated in the quarterly survey represent quick service, fast-casual/family dining, casual dining and fine-dining/high-volume restaurants.

The fine-dining/high-volume segment is “still underwater,” Doolin said. That segment’s employment expectation level dipped below 50 for the first time, indicating job loss. Thirty-two percent of companies reported cutting hourly payrolls in the first quarter and 52 percent cut management jobs. At the same time, 32 percent added hourly positions and 19 percent added management jobs.

All segments reported drops in turnover rates as national unemployment has risen. Unemployment was 8.5 percent in March, nearly double the 4.4 percent for March 2008. For workers ages 16 to 24, the rate is currently 16.3 percent, the highest in 25 years. As a result, operators have not been as concerned with filling vacancies, the index found.

Low turnover has been somewhat of a silver lining for the industry, Doolin said.

“The recession brings the opportunity to hire talents and to maximize opportunity to get out there and get A-level team players,” she said. “But that window of opportunity won't stay open forever. We will probably see that start to change in the next quarters if the trends hold.”

Contact Dina Berta at [email protected].

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