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

  • Hospitality Recruiter Can Help You Find a Job!

    Karl was the best asset in securing my new position. He was there coaching and teaching me every step of the way. I have been working in the food industry for 20+ years and this is the first time I have used a recruiter. I have been on both ends of the hiring process and Karl has helped to know what people are looking for and what I should be looking for when hiring new employees. I look forward to meeting Karl and shaking his hand. If needed I would seek Karl out again!         Mahmoud Elkhyati         Need help with your resume – Have a Recruitment Specialist help you for FREE       Hospitality Recruiter Can Help You Find a Job!
  • Hospitality Recruitment Works!

    My interactions with Mr. Richard were professional. He was very accommodating to my wants in needs when it came to the company I was looking to become a part of. I had tried myself to obtain a position with this company, but I was not able to do so on my own. With Richard's help I was able to land the position.  He kept me in the loop when it came to every interview that I had from beginning to end and kept me very upbeat and positive about the experience. I believe this is how a head hunter or recruiter should perform when dealing with clients very professional and had integrity in everything that he did.     Albert Jones     Hospitality Recruitment matches YOUR skills with the perfect job Hospitality Recruitment Works!
  • Hospitality Recruiters Are Here to Help

    Daniel was a great help to me on my job search. From the first time I was contacted by him I felt he was here not only to help the company find the right candidate but he was there to make sure I was right for the position.  Daniel is very persistent when he is working with you.  He knows that time is of the essence and he helps you adhere to a very strict timeline to be successful.  Daniel is there for you when you are feeling unsure and is always available to discuss just about anything.  He has a wealth of FOH & BOH knowledge and that really put me at ease because I have not met many recruiters with FOH & BOH experience. Talking to someone who has been where you have been really puts you at ease!  I am very appreciative that I had the chance to work with Daniel on this occasion.  I am thankful he was understanding, attentive, communicative, and seems to generally care about you as a person and a perspective candidate! Katherine Woods         Career Coaches that help you for FREE Hospitality Recruiters Are Here to Help
  • Hospitality Recruiters Make the Best Match for You in Your Next Job!

    Tom Schmitt was nothing but more than professional and courteous to me.  He originally contacted me about a company looking for a General Manager.  I was employed at the time, but not very happy in my situation.  Tom talked to me in great detail in regards to the position he had.  After careful consideration, I decided to pursue the opportunity.  He helped me create a more professional resume to present to the company.  He communicated to me on a daily basis as I went through the interview process.  I was eventually given an offer for the General Manager position.  I can honestly say that without Tom's help, I would still be in an unhappy job.   Thank you,   Roy Riddle     What kinds of jobs does a Hospitality Recruitment Specialist have for me? Hospitality Recruiters Make the Best Match for You in Your Next Job!
  • Hospitality Recruiters can help YOU find a job!

    Stephanie Yee played a key role in not only getting me in the door for my first interview, but in every step thereafter in the process. Stephanie coached me on effective interview strategies specific to my prospective role and made herself available for questions anytime. I was consistently kept in the loop with each new step in the process and her client insights proved invaluable. I always knew what to expect at each turn and who I would be interviewing with, along with basics like where to park and expected attire…all things that can easily trip up a less informed candidate.  In addition to all of this, Stephanie’s naturally positive attitude helped me to stay calm throughout a lengthy interview process that spanned a number of anxiety driven weeks. In short, without Stephanie in my corner, I wouldn’t have been able to turn this new chapter in my career. Sincerely, Steve Davis Hospitality Recruitment matches YOUR skills with the perfect job Hospitality Recruiters can help YOU find a job!