Restaurant sector adding jobs despite hiring, retention challenges
The restaurant industry grew by more than 1.7% in 2024, with quick-serve chains adding more jobs than other sectors.
According to the 2024 Restaurant Workforce Report by restaurant team management platform 7shifts, which is based on a survey of more than 900 restaurant managers, 210,300 restaurant jobs were added this year. Fueled by post-2020 habit changes and a young generation of diners, quick-serve dining has grown by 4%, offsetting losses in the full-service sector.
Despite the increase in restaurant jobs added this year, hiring remains a top challenge for managers. Nearly two-thirds (65%) of respondents described the current labor market as “tight” or “very tight." Recruiting (30%) and retention (27%) are top concerns, with a lack of qualified and committed applicants cited as a significant obstacle.
To attract and retain employees, restaurants are paying more and offering more benefits. 7shifts notes that median base wages have risen 4%, from $13.64 to $14.20 per hour, and total compensation has followed a similar upward trend. Many restaurants are adjusting pay scales and offering additional benefits, including 401(k) plans and improved healthcare, to attract and retain workers. However, 69% of respondents do not offer childcare or mental health support for their employees.
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."
