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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What Clients Say About Patrice & Associates

  • I would like to start off by saying that Mike did a great job. He is very passionate about what he does, and he is very good at it. He stayed in constant contact with me, he made sure i was 100% prepared for the interview process and everything. I don’t usually work with recruiters, but this time i am extremely happy i did. Thank you to Mike, and Patrice & Associates for all the hard work you guys put forth! I will make sure i send more people your way. Thanks again Mike, it was a pleasure working with you!   Sean Williams-Mitchell USMC Veteran Thank you to Mike, and Patrice & Associates for all the hard work you guys put forth!
  • I recently worked with Sherri Balzer in conjunction with a management opportunity with IHOP. She was extremely professional throughout the entire process. In addition, she was very helpful and knowledgeable about the company and interview process. I would highly recommend to anyone looking for a new job opportunity to consider Sherri Balzer for all their needs.   Read Mullin I would highly recommend to anyone looking for a new job opportunity to consider Sherri Balzer for all their needs. 
  • Stephanie Yee is a great part of my journey with California Fish Grill. We came across each other via LinkedIn and started a professional relationship. Not only she told me about the great opportunity with CFG, she also gave me info and reading materials about company and helped me built confidence before my interview. Lorie Santos-Law Assistant. General Manager California Fish Grill Stephanie Yee is a great part of my journey with California Fish Grill.
  • Stephanie reached out to me at a time when I was thinking about looking for a new job but was not quite sure where to begin. From our first call together she was professional and friendly. We talked a lot about my current position, previous jobs and what I was looking for in the future. From our conversations she made a new resume for me that was specific to Susiecakes. Stephanie was always on top things communicating with Susiecakes as well as myself. She was always easy to reach via phone, texts, and emails. Furthermore it really felt like Stephanie was on my side and wanted what was best for me. She listened to my concerns and negotiated on my behalf. In the end I was hired in a position that I think will be beneficial for both myself and Susiecakes. Even after I started my job a work text was accidentally sent to her and she promptly sent it to me. Still looking out for me even after I received the job. I have since referred her to an old coworker and am certain that she will find them a great job as well. I will continue to recommend to Stephanie Yee to only the best culinary professionals that I know. Sincerely, Andrew From our first call together she was professional and friendly.
  • From the initial interview, Helen was very thorough and spent time getting to know my background and experience. She was detailed in her delivery of the opportunity, and confirmed the dates and times for follow up. Her open line of communication made the process easy and enjoyable. From our initial conversation to the signed job offer, Helen shared in my excitement! I am so grateful to her, and Patrice and Associates for fitting me with this amazing opportunity. Christina Russillo I am so grateful to Helen and Patrice and Associates for fitting me with this amazing opportunity. 
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