How restaurants are dealing with their labor problems

In this week’s episode of "A Deeper Dive," Pincho Factory CEO Jayson Tipp and RB Editor-at-Large Peter Romeo talk about labor challenges.
Photograph courtesy of Pincho Factory

a deeper dive

Labor is arguably the biggest challenge facing the restaurant industry in 2018, and it isn’t likely to go away in 2019.

Restaurants have added more than 200,000 jobs over the past 12 months and more than 2 million jobs in the post-recession era.

With the unemployment rate below 4%, and the labor pool increasingly competitive thanks to other growing industries—notably companies such as Uber and Lyft and delivery companies like DoorDash and Grubhub—the cost of labor has skyrocketed. The issue has made it more difficult for restaurants to open and staff new locations and has made high wages, such as $15 an hour, far more common.

In this edition of Restaurant Business' podcast, "A Deeper Dive," Pincho Factory CEO Jayson Tipp talks about how the 10-unit chain is working to attract and keep good employees.

And RB editors Jonathan Maze and Peter Romeo talk at length about the extent of the labor challenges in the restaurant business and what it means for operators in the coming years.

Please have a listen.

This podcast episode is sponsored by CrunchTIme Information Systems.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.


Exclusive Content


Trend or fad? These restaurant currents could go either way

Reality Check: A number of ripples were evident in the business during the first half of the year. The question is, do they have staying power?


Starbucks' value offer is a bad idea

The Bottom Line: It’s not entirely clear that price is the reason Starbucks is losing traffic. If it isn’t, the company’s new value offer could backfire.


Struggling I Heart Mac and Cheese franchisees push back against their franchisor

Operators say most of them aren't making money and want a break on their royalties. But they also complain about receiving expired cheese from closed stores. "Don't send us moldy product."


More from our partners