The U.S. food service industry, valued at $900 billion, is still struggling to fill positions three years after the COVID-19 pandemic. The restaurant industry has had to increase pay and benefits, but establishments remain understaffed. Although the National Restaurant Association reports that US restaurant and bar sales are projected to increase about 6% this year to nearly $1 trillion, a recent survey confirmed that more than 60% of establishments are facing staff shortage challenges, with the number of job openings across the restaurant industry standing at 1.7 million.
Recently, staff shortages in restaurants are attributed to mass migration and relocation, causing establishments to struggle to fill vacancies, with the U.S. Census Bureau recently reporting that 26 states experienced an influx of people in 2022, while 25 states saw a population outflow. This leaves customers waiting for service at their favourite dining spots and disrupts local economies.
Moreover, in 2022, 30 states, plus Washington, D.C., increased their minimum wages. As of January 1, 2023, The District of Columbia has the highest minimum wage in the country, at $16.50 per hour, followed by Washington ($15.74), California ($15.50), and Massachusetts ($15).
“The restaurant industry continues to battle staff shortages and operational inefficiencies. Despite the hike in minimum wages, some front-of-house restaurant staff are worried that it will negatively affect the tips they depend on because of misinformation or a lack of understanding of how these increases work,” notes Brian Duncan, President of me&u USA. “Technology is the only way to boost restaurant revenue amid staff shortages and simultaneously elevate the customer experience. A well-integrated tech approach is key to overcoming challenges and ensuring satisfaction.”
According to a Deloitte report from 2021, 57% of customers prefer to use a digital app to order food for off-premises dining, while 64% of customers prefer to place their orders digitally at quick-service restaurants. 71% of diners say online and on-premise restaurant technology enhances their dining experiences.
A 2022 Popmenu study found that 51% of restaurant owners and operators intend to automate more online operations whereas 41% plan to automate more on-premise operations.
“Long waits outside a restaurant means frustrated customers, lower tips, and reduced revenue. Restaurant owners must discover ways to increase revenue and decrease other costs to account for higher wages. At-table ordering enables orders to reach the kitchen quickly and crowded lines are all but eliminated. It ultimately allows customers to order and pay at the table quickly, ensuring bigger checks and more tips for the servers,” concludes Duncan.
Brian Duncan, President of me&u USA, can speak on the following:
- What percentage of establishments are facing staff shortage challenges in the restaurant industry?
- What factors are contributing to the staff shortages in restaurants?
- How does at-table order technology benefit both restaurant owners and servers?
- Why do customers prefer to use digital apps for ordering and dining?
- How can technology be utilized to overcome staffing challenges while also improving customer experiences in the restaurant industry?
To speak with Brian Duncan, contact me via khelms@jotopr.com or call 727-777-4619
About me&u
With a vision to be a global leader in the hospitality technology space, me&u is on a mission to help the global hospitality industry recover. Launched in 2017, me&u was conceptualized by Founder Stevan Premutico to transform the traditional ordering experience in a bid to solve deep-rooted structural issues that have been the Achilles heel of the hospitality industry for decades. The technology is not just a digital menu but one that is intelligent and highly personalized to the ordering experience for both the customer and venue. me&u presents the best of both worlds — seamlessly enabling greater human connection while ensuring efficiency for venues, greater client satisfaction, and retail growth. The company that Premutico has created works with operators, not against them, to create a more profitable future for the industry through fair financials, transparency, and a hospitality-led founding team. Visit https://www.meandu.com/
References:
- Patton, Leslie. Three Years After Covid Hit, Restaurants Are Still Desperate for Workers. March 08, 2023. Bloomberg. https://www.bloomberg.com/news/articles/2023-03-08/restaurants-can-t-find-workers-as-millennials-gen-x-avoid-return-to-work#xj4y7vzkg?leadSource=uverify%20wall
- Evangelou, Nadia. Where People Moved in 2022. January 30, 2022. National Association of Realtors. https://www.nar.realtor/blogs/economists-outlook/where-people-moved-in-2022
- Lisa, Andrew. How the Minimum Wage Changed Throughout the US in 2022. December 22, 2022. Nasdaq. https://www.nasdaq.com/articles/how-the-minimum-wage-changed-throughout-the-us-in-2022
- Deloitte: The Restaurant of the Future Should Evolve to Serve Consumers in New Ways. December 08, 2021. Deloitte. https://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-the-restaurant-of-the-future-should-evolve-to-serve-consumers-in-new-ways.html
- Research: 71% of Consumers Say Restaurant Technology, Both Online and On-Premise, Improves Their Guest Experience. October 19, 2022. Restaurant Technology News. https://restauranttechnologynews.com/2022/10/research-71-of-consumers-say-restaurant-technology-both-online-and-on-premise-improves-their-guest-experience/
- Sweeney, Brendan. The Digital Divide: 3 Reasons Why Some Restaurants Outperform Others. June 03, 2022. Entrepreneur. https://www.entrepreneur.com/science-technology/the-digital-divide-3-reasons-why-some-restaurants/426684
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