Imagine an industry with over a million vacant positions staring back at it from "Help Wanted" signs, and you'll begin to grasp the staggering scale of the restaurant labor crisis that is fundamentally reshaping how we dine out.
Key Takeaways
- In October 2022, the restaurant industry had 1.2 million job openings, representing 8.5% of total employment in the sector
- US restaurants reported over 200,000 more job openings in Q3 2023 than pre-pandemic levels
- Leisure and hospitality sector unfilled jobs reached 1.4 million in September 2023, up 40% from 2019
- Restaurant employment grew by 500,000 jobs from 2021-2023 but still 400,000 short
- Leisure/hospitality added 100,000 jobs monthly average in 2023 recovery
- Restaurant workforce participation rate dropped to 55% of pre-pandemic levels in 2022
- Average hourly wage in restaurants rose 20% from 2019 to 2023 to $18.50
- 45% of restaurants increased wages by 10% or more in 2023 to attract staff
- Line cooks saw median pay jump from $14 to $19/hour 2021-2024
- Southeast US restaurants had 12% vacancy rate in 2023, highest regional
- California restaurant labor shortage led to 20% staff cuts in 2022
- Florida saw 150,000 open restaurant jobs in tourist season 2023
- 40% of restaurants reduced hours due to labor shortages in 2023
- Menu items cut by 18% on average to manage understaffing 2024
- Customer wait times increased 25 minutes average in shortage-hit spots 2023
Restaurant job openings remain persistently high across the United States.
Employment Trends
- Restaurant employment grew by 500,000 jobs from 2021-2023 but still 400,000 short
- Leisure/hospitality added 100,000 jobs monthly average in 2023 recovery
- Restaurant workforce participation rate dropped to 55% of pre-pandemic levels in 2022
- 2.1 million restaurant jobs added since June 2020 low point by 2024
- Female employment in restaurants fell 15% post-pandemic, slower recovery
- Immigrant workers filled 25% of new restaurant hires in 2023
- Gen Z accounted for 40% of restaurant hires in 2023 but high turnover
- Part-time employment in restaurants rose to 60% of total staff in 2024
- Black workers' share in restaurant jobs declined 5% since 2019
- Average restaurant employee tenure dropped to 1.2 years in 2023
- 70% of restaurants experienced higher turnover post-COVID in 2023
- Hourly restaurant employment up 12% YoY in urban areas 2024
- 1.8 million fewer workers aged 16-24 in hospitality vs 2019
- Unionized restaurant jobs grew 20% amid shortages 2022-2024
- Remote hiring increased restaurant staff acquisition by 30% in 2023
- Veteran hiring in restaurants up 15% due to shortage initiatives
- Student workers in restaurants down 25% from college enrollment drops
- Gig economy filled 10% of restaurant shifts in 2024 via apps
Employment Trends Interpretation
The industry is scrambling to rebuild with a new, unstable blueprint: hiring a transient army of part-timers, immigrants, and Gen Z via apps, while hemorrhaging experienced staff and still falling woefully short of its pre-pandemic vitality.
Job Vacancies and Openings
- In October 2022, the restaurant industry had 1.2 million job openings, representing 8.5% of total employment in the sector
- US restaurants reported over 200,000 more job openings in Q3 2023 than pre-pandemic levels
- Leisure and hospitality sector unfilled jobs reached 1.4 million in September 2023, up 40% from 2019
- 62% of restaurant operators cited labor shortage as their top challenge in 2024 survey
- Fast-food chains had 150,000 open positions in 2023, per Datassential report
- Full-service restaurants averaged 12 open positions per location in 2022
- 75% of independent restaurants had difficulty filling line cook roles in 2023
- Hotel restaurant jobs unfilled rate hit 15% in urban areas 2023
- Bar and tavern sector saw 25% increase in vacancies YoY in 2024
- Casual dining chains reported 10% of staff positions vacant on average in 2023
- 1.5 million workers needed in restaurants by end of 2024, per NRA projection
- Quick-service restaurants had 8.2% vacancy rate in 2023
- Fine dining establishments reported 20% higher vacancy rates than fast casual in 2024
- 90,000 bartender positions open nationwide in summer 2023
- Server roles saw 35% more openings per capita in 2023 vs 2019
- Kitchen staff shortages affected 80% of US restaurants in 2022 poll
- 500,000 seasonal restaurant jobs unfilled in 2023 peak season
- Turnover created 1 million new openings annually in restaurants 2022-2023
- 65% of operators raised wages due to 2023 vacancy rates above 10%
- Pizza chains had 15% vacancy in delivery driver roles 2024
Job Vacancies and Openings Interpretation
The restaurant industry is staging a nationwide "Help Wanted" party where the guests of honor—nearly 1.5 million strong by some counts—are simply refusing to show up, leaving operators to desperately sweeten the deal while staring at a mountain of empty aprons.
Operational and Economic Effects
- 40% of restaurants reduced hours due to labor shortages in 2023
- Menu items cut by 18% on average to manage understaffing 2024
- Customer wait times increased 25 minutes average in shortage-hit spots 2023
- Same-store sales dropped 5% for chains with high vacancies 2023
- 55% of operators raised prices 7% due to labor costs 2024
- Automation kiosks installed in 35% of fast-food to offset shortages
- Food waste up 15% from understaffed kitchens in 2023
- Delivery reliance increased 40% as dine-in staff short 2023
- Profit margins squeezed to 3% average from labor costs 2024
- 25% of restaurants delayed expansions due to hiring woes 2023
- Guest satisfaction scores down 12 points on staffing surveys 2024
- Overtime costs rose 30% for restaurants in shortage 2023
- 70% reported burnout among existing staff from shortages
- Closures of small restaurants up 20% attributed to labor 2023-2024
- Self-service tech reduced staffing needs by 20% in 40% chains
- 82% of operators said shortages hurt service quality in 2023
- Labor costs now 35% of total expenses up from 30% pre-2020
- 50% turned to temp agencies, costing 25% more per hour 2024
- Revenue per labor hour down 8% despite wage hikes 2023
- 65% of fine dining reduced seatings due to front-of-house shortages
Operational and Economic Effects Interpretation
It seems the industry's recipe for success has been whittled down to a choice between serving fewer dishes to fewer people with fewer staff, or simply closing the kitchen altogether.
Regional Impacts
- Southeast US restaurants had 12% vacancy rate in 2023, highest regional
- California restaurant labor shortage led to 20% staff cuts in 2022
- Florida saw 150,000 open restaurant jobs in tourist season 2023
- New York City fine dining closed 15% due to shortages 2023
- Texas BBQ joints reported 25% vacancy in pitmasters 2024
- Midwest states averaged 9% lower shortages than coasts 2023
- Las Vegas Strip casinos-restaurants had 18% vacancy peak 2023
- Rural South Carolina restaurants turned away 10% business due to staff lack
- Pacific Northwest saw 30% wage hike to fill roles 2023
- Chicago Loop had 22% server shortage in 2024 lunch rush
- Atlanta metro added 50,000 restaurant jobs but still short 20k 2023
- Denver casual dining closed 12% outlets over labor 2023
- Boston seafood spots had 28% vacancy in summer 2023
- Phoenix resorts reported 16% staff gaps 2024
Regional Impacts Interpretation
From Florida's beaches to Chicago's lunch rush, America's restaurants are proving that you can't serve 'hospitality' on an empty plate, a truth now leaving diners hungry and owners scrambling from coast to coast.
Wage and Benefit Changes
- Average hourly wage in restaurants rose 20% from 2019 to 2023 to $18.50
- 45% of restaurants increased wages by 10% or more in 2023 to attract staff
- Line cooks saw median pay jump from $14 to $19/hour 2021-2024
- Servers tipped wages averaged $25/hour including tips in 2023 urban markets
- Signing bonuses in restaurants reached $1,000 average for key roles 2023
- 60% of operators added health benefits to combat shortages 2024
- Kitchen manager salaries up 25% to $65,000 annually in 2023
- Fast casual wages increased 18% faster than inflation 2022-2024
- Paid time off offered by 50% more restaurants in 2023 vs 2019
- Bartender wages rose to $16/hour base + tips, up 22% since 2020
- Tuition reimbursement programs adopted by 30% of chains 2024
- Overtime pay premiums increased to attract night shifts 15% in 2023
- Childcare stipends offered by 20% of urban restaurants 2024
- Retention bonuses averaged $500 quarterly in high-shortage areas
- Flexible scheduling valued equivalent to 10% wage hike by 70% workers
Wage and Benefit Changes Interpretation
It appears the industry has finally learned that you can't squeeze blood from a turnip, so instead they're offering the turnips health insurance, a thousand bucks to show up, and overtime for the night shift.
Sources & References
- Reference 1BLSbls.govVisit source
- Reference 2RESTAURANTrestaurant.orgVisit source
- Reference 3NRNnrn.comVisit source
- Reference 4QSRMAGAZINEqsrmagazine.comVisit source
- Reference 5TOUCHBISTROtouchbistro.comVisit source
- Reference 6INDEPENDENTRESTAURANTCOALITIONindependentrestaurantcoalition.comVisit source
- Reference 7HOSPITALITYNEThospitalitynet.orgVisit source
- Reference 8NRAWEBnraweb.orgVisit source
- Reference 9RESTAURANTBUSINESSONLINErestaurantbusinessonline.comVisit source
- Reference 10BLACKBOXINTELLIGENCEblackboxintelligence.comVisit source
- Reference 11EATEReater.comVisit source
- Reference 12INDEEDindeed.comVisit source
- Reference 13LINKEDINlinkedin.comVisit source
- Reference 14USCHAMBERuschamber.comVisit source
- Reference 15SHRMshrm.orgVisit source
- Reference 16PIZZATODAYpizzatoday.comVisit source
- Reference 17MIGRATIONPOLICYmigrationpolicy.orgVisit source
- Reference 18EPIepi.orgVisit source
- Reference 19FEDERALRESERVEfederalreserve.govVisit source
- Reference 20LABORNOTESlabornotes.orgVisit source
- Reference 21HIRINGOURHEROEShiringourheroes.orgVisit source
- Reference 22NCESnces.ed.govVisit source
- Reference 23FORBESforbes.comVisit source
- Reference 24SALARYsalary.comVisit source
- Reference 25GLASSDOORglassdoor.comVisit source
- Reference 26DOLdol.govVisit source
- Reference 27HRhr.comVisit source
- Reference 28WHENWORKWORKSwhenworkworks.orgVisit source
- Reference 29SFCHRONICLEsfchronicle.comVisit source
- Reference 30VISITFLORIDAvisitflorida.comVisit source
- Reference 31TEXASTRIBUNEtexastribune.orgVisit source
- Reference 32REVIEWJOURNALreviewjournal.comVisit source
- Reference 33POSTANDCOURIERpostandcourier.comVisit source
- Reference 34SEATTLETIMESseattletimes.comVisit source
- Reference 35CHICAGOTRIBUNEchicagotribune.comVisit source
- Reference 36AJCajc.comVisit source
- Reference 37DENVERPOSTdenverpost.comVisit source
- Reference 38BOSTONboston.comVisit source
- Reference 39AZCENTRALazcentral.comVisit source
- Reference 40WASTE360waste360.comVisit source
- Reference 41RESTAURANTDIVErestaurantdive.comVisit source
- Reference 42YELPyelp.comVisit source
- Reference 43STAFFINGINDUSTRYstaffingindustry.comVisit source