Career Development
January 2006

Weekly Restaurant Connections Special Report, Jan. 2, 2006
Staffing Brainteaser: Aligning Emerging Trends
By Peter Langlois, co-editor Weekly Restaurant Connections

Timing is so important in nearly every aspect of our business.  We’re great at drilling down to measure the time between when a guest is seated to when a server arrives at the table.  We identify standard cooking times for lunch and dinner.  Our “Expos” are charged with insuring our food is picked up and delivered to our guests before hot food cools or cold food warms.  We rightfully get right down to the nitty gritty in our operations to assure a quality experience for our guests.  Yet in our mania to concentrate on important details, we may be missing major trends and ideas that will impact our success in the long run, both as individual restaurateurs and as a business segment.  Here are trends, which undoubtedly will shape our industry for the next several years. 

While historically, operators have identified food cost and labor cost as their primary concerns, today staffing and sales have become the biggest issues, according a national survey published in the Dec. 15, 2005 issue of “SmartBrief.”  Operators understand this is a people-driven business, and it is staff that adds or detracts value from our brands. 

What do you think will be the most significant challenge that your business will face in 2006? (from Dec. 15, 2005 SmartBrief)

26.6% -- Recruiting and retaining employees
18.4% -- Building and maintaining sales volume
13.2% -- Gas and energy costs
12% -- Profitability
7.4% -- The economy
6.2% -- Operational costs
6% -- Competition
5.6% --Labor costs
4.7% -- Food costs

 While the National Restaurant Association forecasts foodservice sales will be $511 billion in 2006, there are a number of key states where restaurant startups are concentrated.  According to the January 2006 issue of “Restaurant Start Up and Growth,” California (6,970); Texas (6,538); Florida (4,837), and New York (4,097) combined to account for 22,442 licenses issued in the last 12 months, about 41 percent of all licenses nationally (54,825).  While we continue to hear about the growth of restaurants in Las Vegas, Nevada ranks 26th on the list.   

Particularly California, Texas and Florida have growing Hispanic populations (New York had long had a significant Hispanic segment), which should represent significant staffing opportunities for foodservice.  Sometimes identified as a source for largely unskilled labor, dynamic educational trends are emerging among Hispanics, creating “specially acculturated Latinos—defined as having adapted to mainstream U.S. culture while maintaining the values of their native culture.”  “Hispanic Trends,” Dec. 2005-Jan.2006 identifies this group and also these critical educational facts: 

  • 80 percent of Latino college freshmen are enrolled in just seven states: California, New York, Arizona, New Jersey, Florida, Texas, and Illinois.

  • Hispanic youth account for nearly one-third of the overall undergraduate enrollment from 1996-2001, placing a heavier emphasis on two-year programs than the general public. 

  • From 1970 to 2,000, the share of U.S.-born Latinos aged 18-19 with a high school diploma increased from 40 percent to 60 percent, a 50 percent increase.

 Our staffing goal should be is to converge these trends.  Recruiters should be challenged to go after this emerging labor pool, which is becoming more attractive in not just numbers but also in education and skill levels.  Because other sources continue to shrink, the growth of the industry may well depend upon the ability to attract and retain “specially acculturated Latinos.”

 Incidentally, this group also places greater emphasis than the general public on a number of key aspects when choosing restaurants like good service, variety, caters to children, and low prices, also according to “Hispanic Trends.”  In your marketing efforts, you should carefully consider these as you re-engineer menus and develop service standards for 2006.  After all, not only is this group a source of labor, but also a growing segment of customers.  These factors played heavily into our decision improve service by publishing a Spanish version twice each month beginning Jan. 15.  Our view is to emphasize a bilingual approach.

 Charles and I will be back next week, Jan. 9, 2006, with our first issue of the New Year.  We’ll be starting up our new Career Center section with a question that seemingly is top of mind for many executives as we begin a New Year: “Is It Time for a Career Change?”  As we start our ninth year of publication we’d like to thank both our advertisers and our valued readers for their support and continuing interest.

 Here’s wishing you a great start to the New Year!

 Peter (and Charles), co-editors Weekly Restaurant Connections 

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Peter Langlois is founder of www.RestaurantU.com: Tools of the Trade for Business, for School, for Free!,co-editor of Weekly Restaurant Connections (e-Newsletter), Culinary Instructor, The Art Institute of Houston-Culinary, and Management, Marketing and e-business Facilitator at The University of Phoenix (Houston).  Langlois is also a Malcolm Baldrige 2005 Ambassador. He has a Political Science degree from Michigan State University (Modern International Chinese Relations) and an M.B.A from the University of Houston (Marketing and Business Strategies).  If you enjoyed this feature, you’ll probably enjoy his free newsletter available on www.RestaurantU.com.

 Contact information: 832.860.5595 or peter@restaurantu.com

 

 

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