One of the most interesting aspects of my job as president of the New York State and City associations was conveying to members of various legislative bodies the value that foodservice operations bring to their community and their constituents.
Every state and most major marketing areas in the country, as well as the National Restaurant Association, have been a contributor in keeping these groups and the general press aware of the growth and value of foodservice. I thought I would take the time and space to bring you up-to-date on where we stand economically, courtesy of the NRA. I think you will be impressed as well. I have made some comments along the way.
• 7 in 10 restaurants are single-unit operators.
Comment: While it appears that the chain operators are growing by leaps and bounds, their growth is limited to more heavily populated areas.
• There are over 1 million restaurants plus in the United States.
Comment: New York City alone has an estimated 35,000 and the number keeps growing.
• There is an estimated 15.3 million restaurant employees and it is estimated that 1.6 million more jobs will be created by 2029.
Comment: Much of that will come from the southern, western, and northern sections of the country, where migration has been growing. More people, more eating places.
• We represent 10% of the workers in the overall workforce.
Comment: While many industries are racing to develop greater use of robots, it will be some time before back-of-the-house jobs will be replaced by them—cost being the roadblock.
• 9 in 10 restaurant managers started at entry level.
Comment: Apprenticeship is a natural in most restaurant kitchens. In many instances, employees with a desire to become chefs and bakers will gravitate to those who are doing those tasks. If successful, they can then move up to manager positions.
• 8 in 10 restaurant owners started in their industry careers in entry-level jobs.
Comment: This fact speaks for itself.
• This last fact is amazing: 9 of 10 restaurants operate with fewer than 50 employees.
Here is more: We are now the nation’s second-largest private-sector employer, employing more than 15 million people and serving more than 170 million customers each day.
Americans are consuming pizzas and hamburgers at record numbers. According to Datassential, for the year 2019 there were 3.2 billion chicken sandwich orders at quick-service restaurants.
Like most businesses, foodservice is facing labor issues, mainly availability. For example: An article by Heather Haddon, in The Wall Street Journal, focused on McDonald’s and how they are approaching growth.
“ ‘We’ve never been more focused on improving the experience of the drive-through, in particular, the speed of service,’ McDonald’s said in that earnings report.
“Other fast-food chains are also exploring automation to quicken operations and cut costs in an expensive labor market. Minimum wages are increasing in many states and unemployment is at record lows. More than one-third of restaurant operators are struggling to fill open jobs, according to a survey conducted in April by the National Restaurant Association.
“Mason Smoot, a McDonald’s senior vice president overseeing key innovations, said during an interview that the voice-activated drive-through and robotic fryer will be tested at more restaurants soon. He and other executives wouldn’t say what those investments will cost the company or its franchisees. Some franchisees have balked at the cost of other restaurant refurbishments and operational changes.
“Union organizers who have tried to organize McDonald’s employees in recent years have said automation would eliminate jobs. They have organized walkouts this year over working conditions and pay at the biggest U.S. fast-food chain.”
Their competitors are also investing in technology. “Domino’s Pizza Inc. last year began testing voice recognition to take orders by phone. Other chains are testing self-operating ovens and dishwashers, along with robots that flip burgers and perform other rote tasks.
“More than a decade ago, McDonald’s began using a conveyor system to fill fountain drinks for drive-through orders. The company started developing its automated fryer last year.”
The future? Chains? Not only will there be more of them, but those that do exist will continue to grow. Also, the labor situation will be unsettled. More supermarkets will be adding in-store foodservice and their microwave selections will multiply. The demands are terrific, but you know that. Good luck.
