Restaurant sector adding jobs despite hiring, retention challenges
The majority (63%) of restaurants have made no changes to their tipping models in 2024, keeping tips a core part of workers' income.
[READ MORE: Report: Full-service restaurant wages up 74% since 2017]
While restaurant wages are rising nationwide, substantial regional disparities remain. High-cost-of-living regions like the Pacific Northwest and Northern California lead with hourly wages over $20, with cities like Seattle and San Francisco averaging $25.34 per hour. In contrast, regions like the Southeast and Midwest lag behind, with hourly wages averaging $15 in cities like Charlotte and Houston.
"Our previous research shows that flexibility, camaraderie and strong management are essential for job satisfaction and retention in the restaurant industry," said Jordan Boesch, CEO at 7shifts. "Flexible hours help employees balance their lives, and an environment that fosters camaraderie keeps teams engaged. As always, effective management was shown to be key, with 45% of employees citing poor leadership as a reason for leaving. Moving forward into 2025, it will be crucial for restaurants to utilize the right strategies and tools that prioritizes satisfaction, connection and supportive leadership."