The restaurant industry is poised for significant growth in employment over the next decade, with projections indicating an increase of about 1.1 million positions between the end of 2023 and 2032. This growth is based on data from the Bureau of Labor Statistics and projections developed by the National Restaurant Association. However, despite this positive outlook, many operators are still facing challenges when it comes to finding and retaining staff.
According to the State of the Restaurant Industry 2024 report released by the National Restaurant Association, 45% of surveyed restaurateurs reported inadequate staffing to meet current consumer demand. This shortage of staff has led some operators to consider alternative solutions, with about a quarter of them expressing interest in using “gig workers” to supplement their existing staff.
Hudson Riehle, Senior Vice President of the NRA’s research and knowledge group, highlighted the potential for gig work in the restaurant industry, citing recruitment and retention as major challenges for operators. The flexibility of hours and employment in the industry, coupled with advancements in technology, has created an environment conducive to the growth of gig economy work in foodservice. Apps and services like Qwick or Gigpro now offer temporary workers to restaurants, providing a solution to the staffing shortage.
While gig work offers flexibility for workers, it also raises concerns about worker classification and benefits. Companies like DoorDash have justified classifying workers as independent contractors by emphasizing flexibility, but this classification excludes workers from certain benefits and stability associated with traditional employment. This has led to political conflicts between gig platforms, organized labor, state regulators, and workers’ groups, as seen in the ongoing battles over gig worker classification laws in California and New York City.
The use of independent contractors through third-party services may also draw regulatory scrutiny, as the Department of Labor plans to implement a rule in March that would make it harder to classify workers as independent contractors. Businesses that exert significant control over workers or use them in roles that are core to the business may face challenges with worker classification.
Despite these challenges, the NRA report found that many restaurants see technology as a way to augment or increase the productivity of workers, rather than as a means to reduce staffing. About 47% of restaurants believe that the use of technology in their segment will become more common, indicating a shift towards leveraging technology to enhance operations and improve efficiency.
In conclusion, the restaurant industry is experiencing growth in employment opportunities, but operators are facing challenges in finding and retaining staff. The use of gig workers and technology presents potential solutions to these challenges, but regulatory issues and worker classification remain key considerations for the industry moving forward. As the industry continues to evolve, finding a balance between traditional employment practices and emerging gig economy trends will be crucial for sustainable growth and success.
