Labour shortages bite into US food and beverage industry

The US food and beverage industry is grappling with significant labour shortages, with the latest report from Expert Market, sponsored by hospitality platform Toast, painting a stark picture of the challenges faced by the sector. The report reveals that a staggering 82 percent of US restaurant and foodservice businesses are actively recruiting, yet many are struggling to fill key positions.

The staffing crisis is particularly acute in the kitchen, where chefs and cooks are the most sought-after yet elusive talent. These roles account for a significant 30 percent of all job openings, highlighting a worrying culinary gap within the workforce. Dishwashers and cashiers follow as the second and third most difficult positions to fill, making up 12 percent and 7 percent of open roles respectively.

However, the recruitment challenge is only part of the problem. Staff retention is an equally pressing issue, with a 2023 study by Toast revealing that 30 percent of restaurant industry employees are at risk of leaving within the next two years. This high turnover rate adds another layer of complexity to the labour shortage, as businesses not only struggle to attract new talent but also to retain existing staff.

Challenging future ahead

Looking ahead, the outlook remains challenging. Over a quarter (26 percent) of food and beverage businesses anticipate that staffing shortages will worsen over the next 12 months. To combat these issues, Expert Market suggests that business owners focus on enhancing their recruitment strategies. This could include offering competitive compensation packages, fostering a positive workplace culture, and leveraging technology to streamline hiring processes.

Chris Maillard, Editor at Expert Market, emphasises the need for a proactive approach: “The Food & Beverage industry continues to be a complex landscape to navigate in 2024. Our survey findings show that while hospitality is very much a people-centred business, looking after staff as much as customers should be a high priority for business owners in this sector.”

Maillard also points to the importance of using available tools to manage operations efficiently, such as software for time management, payroll, and inventory. Additionally, promoting a healthy work-life balance and recognising staff contributions can play a crucial role in increasing job satisfaction and loyalty.

As the industry continues to face these challenges, innovative and effective staffing strategies will be essential to navigating the road ahead.