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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  • Hospitality Recruitment agency – your friend

    Marcel was a wonderful help in this process. He reached out to me with impeccable timing on my side and guided me through what is usually an arduous task of looking and searching for the next step. Thanks to Marcel, I didn't have that anxiety that usually comes with looking for a new job. He provided me with all the help I needed and guided me along the way with advice about the company as well as how best to present myself. Never once did I feel pressured or uneasy. Marcel was truly helpful and I'm grateful for the opportunity to have worked with him. Mahalo, Samantha "I'm grateful for the opportunity to have worked with him."
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    I wanted to reach out and tell you about Chris Giles. Since the moment he started working with me to find the right job Chris has given me 100% support in helping me find a job. Out of all the recruiters I have worked with Chris is the only one who would reach out to me every couple of weeks to update me on what he has coming in or if he didn’t have anything at the moment.He has kept me in the loop since the beginning. This shows me how much he cares about his job and his clients. I couldn’t have asked for a better recruiter from your company. Thank you Chris for helping me find the right job. I was loosing hope but you restored it. Thank you Justin Brown "I was loosing hope but you restored it. "
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    Thank you for the opportunity to express my satisfaction with Chris Jones.  Chris was very professional from the very beginning and always kept me updated on the progress with the company. It was a very stress free process, and I truly recommend Chris to anyone in need of a new career. Thank you Chris you are awesome!!   please use this as you see fit   sincerely, Chris Lodes Patrice & Associates Hospitality Recruitment Worked for me!
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    Vicki Gladson is always prompt, professional and honest.  This is my second time using Patrice and Associates as a recruiting agency.  I have developed a rapport with Vicki and I have confidence in her abilities to find the right job opportunity for me.  As my career goals have taken a different direction, Vicki was there to help navigate me through process of finding a great job with the upward advancement opportunities.

    Thank you Vicki, Charla Hospitality Recruiting at it's finest!
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