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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  • Doug's Hospitality Recruitment Skills Found a Job for Glenn!

    I cannot say enough good things about Doug. He was a joy to work with and if I ever need a recruiter I will call on him. Thank You, Glenn Davis   Have a Hospitality Recruitment Specialist work for you for FREE Doug's Hospitality Recruitment Skills Found a Job for Glenn!
  • Hospitality Recruiter "helped me land this job"

    I would like to say that I had the most wonderful experience working with Roberto. He was very kind and knowledgeable.  He helped me pick a company that was the right for for me. He was a helping hand throughout my entire process. I know I am the one who interviewed, but Roberto's  conversation and tips helped me land this job. I am so fortunate to have worked with Roberto. He was a wonderful recruiter.   Career Coaches that help you for FREE Hospitality Recruiter "helped me land this job"
  • Hospitality Recruiters Truly Care!

    My experience with Roberto was wonderful.  I have never gone through a recruiter before and Roberto was an amazing first experience.  Roberto was very helpful and walked the experience with me. I felt like he really cared and truly happy for me when I  got the job. I would definitely recommend Roberto to anyone who wants to feel like someone is going through the process with them he made me feel like he was genuine! Thank you Roberto! -Arleen Roberts   What kinds of jobs does a Hospitality Recruitment Specialist have for me? Hospitality Recruiters Truly Care!
  • Let a Hospitality Recruiter Find You a Job!

    My experience with Patrice and Associates has been the best experience ever,  while listening to my needs and making them happen has been a journey of wonderful opportunities. Thank you Daniel Avery. It’s been a blast working with you and you turned my mountain into a mole hill. -Joleen Phelps   How to work with a recruitment specialist Let a Hospitality Recruiter Find You a Job!
  • Hospitality Recruiters Can Help You with Your Resume!

    Ken Welch did an amazing job helping me find new job opportunities. He helped me build up my resume and even got me ready for potential interviews. He kept me updated constantly and before I knew it, I had many options of restaurants I could send my resume to. With his help, I got the job at my first choice and now I can’t wait to be their new manager. It was a very easy process and I thank Ken for all his help. Sincerely, Rich Fletcher   What kinds of jobs does a Hospitality Recruitment Specialist have for me? Hospitality Recruiters Can Help You with Your Resume!