New Study Shows That More Than Just Unemployment Benefits Are Keeping Workers Away From Restaurants

A new report by Black Box Intelligence released Monday analyzes data from a survey of more than 4,700 current and former hourly restaurant workers conducted with Snagajob. As workers leave the foodservice industry in droves and operators struggle to find employees, the study aimed to look more closely at the factors that are contributing to the current labor shortage.

Overall, the report estimates full-service restaurants are operating with 6.2 fewer employees in the back of the house and 2.8 fewer workers in the front of the house, compared with pre-pandemic staffing levels.

The Bureau of Labor Statistics reported that job openings have increased to a high of 10.1 million in July, with accommodations and food service accounting for a large portion of the increase. This, in large part, may be due to the fact that restaurant employees are quitting in record numbers. For limited-service restaurants, turnover rates increased to 144% in June 2021, compared with 135% in 2019. Similarly, full-service restaurant turnover was 106% in June this year, compared with 102% in 2019.

While many have pointed to increased unemployment benefits as a major contributor to the labor crisis, the Black Box Intelligence report notes that cutting those benefits won’t significantly reduce the labor shortage. Instead, 66% of respondents said they would return to the industry if the right conditions were met, the report found. So, what are those conditions? 

To start, compensation is a significant factor, with nearly one third (28%) of respondents saying they left the industry for higher pay. Over the past few months, legacy franchisors like Darden and McDonald's have been raising wages and offering enhanced employee benefits to bring some of these workers back. In May, the foodservice industry surpassed $15 per hour in average wages for the first time, according to BLS data.

Additionally, when restaurants were shuttered during the pandemic, many workers switched to other sectors, such as warehousing and logistics, for reasons other than pay. According to the survey, 23% said they needed a more consistent schedule and 17% cited the lack of professional development and promotion opportunities. Others blamed the work hours (16%) or work culture (15%).

More than two-thirds of current and former restaurant workers said disrespect from customers is another factor in the industry’s labor shortage, especially when it comes to enforcing health policies like vaccination requirements. The report found that 65% of hourly workers want businesses to require customers to wear masks, and 83% of those workers said they plan to wear a mask while working to keep themselves safe, regardless of local requirements. 

But, according to the report, the disrespect isn’t only coming from the customers. Alarmingly, almost half of the workers cited emotional abuse from their managers as a factor in the decision to leave the industry, with 15% saying they were sexually harassed by managers or co-workers, and another 15% saying they were sexually harassed by customers.

Child care is also another major factor coming into play. The report shows that 35% of current hourly workers and job seekers are parents, and 18% of unemployed hourly workers had to leave jobs to take care of family or children. The report also notes that McDonald’s officials said a lack of child care is the top reason workers say they can’t return to work.

Looking ahead, this type of data can help restaurant owners and franchisees attract talent and adapt their labor practices to better appeal to the current workforce. Whether it be rolling out new benefits, evaluating the work environment or increasing hourly wages, restaurant owners may have to start thinking about how they can survive in a — as the report puts it — “job candidate’s market.”