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Labor: What are you going to do about it?

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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.

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