Majority of US Businesses in Food & Beverage Industry Struggling With Labor Shortages

A recent Expert Market report sponsored by hospitality platform Toast, revealed that 82% of US restaurant & foodservice businesses are actively hiring.

Expert Market’s survey results also revealed that labor shortages have been cited as a top concern for nearly a quarter (23%) of US F&B businesses. This insight highlights staffing issues as a concerning and current challenge faced by US F&B businesses.

Top 3 most challenging roles to fill:

1. Chefs & Cooks
2. Dishwashers
3. Cashiers

According to the report’s findings, Chef and Cook positions emerge as the most challenging roles to fill, accounting for 30% of all open roles. This finding from Expert Market’s 2024 F&B Industry Report sheds light on a clear culinary gap within the industry's workforce.

Dishwashers were found to be the second most challenging role to fill, accounting for 12% of all open roles. Cashiers came in third place taking up 7% of all open roles.

Staff retention struggles

However, recruitment issues aren’t the only factor contributing to staff shortages. A 2023 study by Toast found that 30% of staff in the restaurant industry are at risk of leaving in the next 2 years, highlighting an equally concerning high turnover rate within this sector. 

The future of staffing in the F&B industry 

Projections suggest that the labor shortage problem could prevail into the future, as over a quarter (26%) of F&B businesses believe staffing shortages will only worsen over the next 12 months.

To avoid hiring shortcomings, Expert Market recommends business owners focus on implementing effective recruitment strategies. This might include offering competitive compensation packages, enhancing workplace culture, and leveraging technology that allows for more efficient hiring processes.

Expert Market’s Editor, Chris Maillard, comments:

“The Food & Beverage industry continues to be a complex landscape to navigate in 2024. Our survey findings show that while hospitality is very much a people-centered business, looking after staff as much as customers should be a high priority for business owners in this sector."

Maillard continues:

“Labor shortages are really starting to bite in this sector. Owners and managers should use all available tools to prevent staffing issues. For instance, using software to efficiently manage time, payroll, inventory and more can help to keep a business’s most valuable asset - their employees - happy and loyal.

Emphasizing a healthy work-life balance through implementing flexible work arrangements – particularly for jobs with higher turnover rates – and recognizing staff efforts can also be efficient ways to potentially increase job satisfaction and loyalty.”