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 appreciate what Sherri and Patrice and Associates Hospitality Recruitment did for me and my career.

    Sherri Balzer is an excellent job recruiter. I had been working with her for more than 3 months where I had multiple job interviews with different companies. She is always very detailed, caring, patient, and most of all very professional. I turned down multiple job offers because they were not a good fit for me and Sherri understood my reasons. Instead of losing hope in me she kept working hard looking for other companies that suited my skill set and knowledge. We found the perfect company and I got the best job offer available. I appreciate what Sherri and Patrice and Associates Hospitality Recruitment did for me and my career. Respectfully,

    Andrew Figueroa

    I appreciate what Sherri and Patrice and Associates Hospitality Recruitment did for me and my career.
  • I referred a friend to Patrice & Associates Hospitality Recruitment

    Kim Marzett has been great! Alongside her professional demeanor, she answered all of my questions freely. She has a very welcoming personality, and helps you every step of the way! I referred a friend to her. I was impressed and appreciative! I referred a friend to Patrice & Associates Hospitality Recruitment
  • Patrice & Associates Hospitality Recruitment is by far the best recruiting agency.

    I just wanted to say thank you to Corina for setting me up with Redstone American Grill. I appreciate all the time and research you and your team have done to make sure that I was prepared for my interviews. Patrice & Associates Hospitality Recruitment is by far the best recruiting agency I’ve worked with in my 25+ years of experience. I’ll be your client for as long as I’m in this field. Alexandre Vincent Patrice & Associates Hospitality Recruitment is by far the best recruiting agency
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    Thank you Fajar and Patrice & Associates Hospitality Recruitment

    From the first time we spoke, til the time I landed the job and even now - days after I have started the job, Fajar has been absolutely outstanding! She constantly checked in with me to answer any questions, provided valuable information and tips for my interview and updated my resume for me. I truly appreciate Fajar's commitment to ensuring I had everything I needed to successfully transition into a new career. I am more than happy with her work and would be more than willing to recommend her services to anyone looking for a new career path. Thank you once again Fajar and Patrice and Associates Hospitality Recruitment for everything you all have done. I am truly very grateful!
    Thank You, Brandon Chase Thank you Fajar and Patrice and Associates Hospitality Recruitment
  • Working with Jillian and Patrice & Associates Hospitality Recruitment was an amazing experience.  First of all, the work Jillian did on my resume before presenting me to the client was outstanding.  I really feel that it presented me in the best light for the client (and it worked because I got the job!).  I’ve worked with a lot of recruiting firms before and the level of service provided by Jillian was far and above the rest of the industry.  Jillian was always available to talk any time of the day and really made me feel like she wasn’t just concerned with placing a candidate - she also cared about my happiness and well-being throughout the process. Dennis Brown My recruiter cared about my happiness throughout the process.