Operators view labor costs as the biggest threat to profitability. In a December Foodservice Planning Program survey, Technomic found that 50% of operators named increased labor costs as having had the biggest impact on results in the past five years, and 48% expect it to have a negative impact over the next five. They blame benefit costs in particular, but also minimum wage increases and labor shortages.
How are they responding?
- 54% have cut staff hours.
- 50% have reduced the number of staff who are eligible for benefits.
- 25% have invested in back-of-house technology.
- 25% have purchased more speed scratch or value-added products.