Restaurant Industry’s Outlook Improving!

As Restaurant Management Recruiters, we will often see hiring trends before it makes news.  In the last 6 months we have been contacted by many new resstaurant and contract food companies wanting us to find managers for their locations.  This is great news on many fronts. First it’s great because it means that companies are opening new locations and need to hire their management team.  It’s great news because the demographics shows that people are eating out or the restaurant chain would not be opening new locations. And it’s great news that companies have the budget and see the need for using a recruiting agency.  Last week we received job openings for almost 350 management positions – in a single week!

Below is an article published in Nations Restaurant News which validates the same trends we at Patrice  & Associates are seeing in the hospitality industry.

October brought more signs of stability, and possibly recovery, in the restaurant industry as commodity prices eased slightly, same-store sales improved and consumer confidence climbed, an analyst said Monday.
 
Brad Ludington, an analyst with KeyBanc Capital Markets Inc., wrote in his Monthly Restaurant Roundup that various data points from last month indicate that the industry outlook is improving. Ludington pointed in particular to companies with “differentiated brands” that continue to “execute at a higher level than their peers, despite other macro pressures,” such as The Cheesecake Factory Inc., Ruby Tuesday Inc., Darden Restaurants Inc., CEC Entertainment Inc., and Papa John’s International Inc.

Ludington highlighted three key areas with positive signs for the industry:

Commodity prices remain high, but fell slightly in October.

KeyBanc’s Restaurant Commodity Index fell to an average level of 144 in October, down 2.6 percent from September’s high for the year of 147, Ludington said. The October result, however, is 24 percent above the index level of 116 the firm reported for the same month last year.

While corn prices were up in October this year, prices declined for chicken breast, potatoes, eggs and some seafood and produce. Wheat prices also eased somewhat despite ongoing volatility, Ludington said. Dairy prices were relatively flat, but butter prices declined 2 percent in the month, the first monthly decrease since February.

Industry indicators point to improvement.

The National Restaurant Association’s Restaurant Performance Index reached 100.3 in September after four months of languishing below the 100-point benchmark. The Current Situation Index improved in August, with respondents reporting sequentially improving same-store sales, customer traffic and hiring, though capital expenditure activity dropped slightly. The NRA’s Expectations Index stayed above 100 for the 11th consecutive month, and operators said they expect overall same-store sales levels to be higher in the next six months.

In addition, the Knapp-Track survey of same-store sales also rose, with a 1.2-percent uptick in September, the best results the index has seen since mid-2007. Traffic rose 1.4 percent — the best traffic results since December 2006, Ludington noted.

September’s Knapp-Track results also marked the third consecutive month of positive same-store sales after 25 months of declines.

“We continue to believe that performance remains stratified between the best and worst performing chains, but we believe the continued positive index results indicate strength in the sector for high-performing chains,” Ludington wrote.

Slow growth in consumer confidence and private payrolls.

Unemployment stayed at 9.6 percent nationally in September with private sector jobs increasing for the ninth straight month, the report said. Consumer confidence, new home sales and housing starts moved in a positive direction, although still low for the year.

“While economic numbers released in the month of October do not exactly inspire confidence in a rapid recovery, we continue to believe data is moving in the right direction, although slowly,” wrote Ludington.

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  • Darryl Jackson makes you his priority! 

    I would say that Darryl Jackson was very professional and helped me in all aspects of my job search.  Darryl took my resume and made it more attractive and appealing, he was also very attentive to my needs and what my expectations were.  What I feel was a key part of the success in our relationship was the constant communication on his part.  Darryl makes it his business to know his client and always speaks to you in a positive manner.  He tries to make you see the good aspects of each individual employer.  In the future if I would need to seek other employment I truly believe I would look for his availability.    

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    Luis C

    Darryl Jackson makes you his priority!
  • Thank you all for everything Bruce Leininger!

    Bruce Leininger is an exceptional and irreplaceable asset to Practice & Associates.  Bruce took the time and really get to know me, my passions and personality.  He understood my wants when it came to my career move .  He took the time to talk to me and build a relationship with me.  Bruce had a lot of patience and was always in communication with me in regards to different opportunities.  I respected and appreciated his advice and input.  I will always be grateful to Bruce, as he listened with all his heart.  I will always remember what Bruce has done for my family and I and I will make sure that everyone I know who wants a career change only talks to Bruce!                  

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    Sami Simaan

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  • The professionalism and care from Francisco Chevez was simply fantastic! 

    He was so informative, prepped to give me the best help whether it was by phone or video call, it gave me the confidence and readiness to succeed in my interview and land the job I was looking for.  He was in constant communication with me and the employer for the entire process, it truly felt like he cared for my needs the entire time and made sure they were met as well.  I am beyond happy with Francisco Chevez and Patrice & Associates, they will be with you 100% during the process and even after to make sure everything is going well. Phenomenal job and thank you so much!      

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    Gerrie

    The professionalism and care from Francisco Chevez was simply fantastic!
  • Chris Bovio has been helpful through and through. 

    He was polite, professional, and fast acting.  He listened to what I was looking for and was impactful in his decision making.  His communication was open and offered a hand at anytime.  He made the job seeking hunt 10x easier and made it a seamless process.  I would recommend Chris and his services to anyone!    

    Jessica Pritz

    Chris Bovio has been helpful through and through. 
  • I am so grateful for Sarah Straniero and her tenacity!

    I appreciate your help Sarah. You have been professional and helped me throughout this process. Thank you for helping me with the GM opportunity.        

    Andre F

    I am so grateful for Sarah Straniero and her tenacity!