Hiring NYC - Hiring Challenges in New York City Restaurants.Restaurant owners have a difficult time recruiting staff despite the fact that more people are applying for jobs. Some employers use employee referral programs in order to attract new employees and encourage them to stay.
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Although the city's economy is recovering, restaurants and bars need help to thrive. Many key workers left the city during the pandemic, while others may have simply sought better paying jobs elsewhere.
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New York City restaurants are notoriously difficult environments in which to work. Employees are often required to work late into the night and early in the morning, which can be exhausting. They also compete with each other for shifts. Many restaurants have difficulty retaining staff and recruiting new ones.
Restaurants have long been at the center of worker shortage complaints, with unfilled job vacancies numbering in the millions--particularly within the service industry. Some owners still struggle to hire even after increasing wages and offering bonuses to employees as incentives.
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COVID-19 restrictions were lifted, presenting restaurant owners with an opportunity to increase employee hours and hire more people. However, progress was hampered by the lingering effects of pandemic and ongoing challenges faced by both workers and restaurant owners. These include low wages, tip inequity, limited or no benefits and race/gender disparities.
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Samantha DiStefano, of Brooklyn, must close Mama Fox Restaurant & Bar on Sunday evening through Monday because she cannot find enough staff. Susan Povich, of Red Hook, must reduce the number of tables at her Lobster Pound Restaurant to avoid customers being turned away. These owners believe that some workers have simply left the industry and are now working in other fields.
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But New York City workers face added pressures from working in one of the world's most work-oriented cities: professionalism is expected and long hours are commonplace, particularly for junior employees in finance, consulting, law and tech fields. Commuters spend most of their weekday time in offices; giving restaurants and bars just a small window of opportunity for customer acquisition during weekdays.
Due to the three-day week, many restaurants have implemented a shift schedule and launched campaigns that aim to attract customers on Mondays or Fridays, which are typically the busiest times for restaurants and hotels.
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New York restaurants permit split shifts, but if an employee works over 10 hours in a day, they are entitled to differentiated pay. An extra hour's minimum wage must be added to their base hourly rate. Restaurants may pay their staff biweekly, weekly, monthly or on a schedule they choose but must notify employees as to when their wages will arrive.
NYC workers can benefit from an impressive range of benefits and perks in this city. Ranging from professional development opportunities to health insurance plans, NYC has much to offer its workers.
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New York City restaurants are an integral component of cultural diversity and an economic driver. The industry is not without its challenges, both for employees and owners. Employees are faced with low minimum wages, tips and inequities regarding race/gender, job instability, and thin profit margins. Owners also face issues such as reliance on third-party delivery services, high operating costs, competition, soaring rents, rising labor regulations, among others.
But restaurant hiring's slow pace reflects larger issues in the labor economy. Many workers are clinging to the weekly federal unemployment benefits which will expire in September, while others have opted out of service industry employment altogether. This explains why restaurants face a shortage of workers even though unemployment rates are declining.
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Contrary to many industries, most restaurant employees do not receive health insurance or paid sick leave, nor rest breaks from their employers. If a host works from 11 a.m. to 3 p.m. before taking two hour break before returning at 5 pm for five more hours until 10 pm then resumes working from five pm until ten pm then the restaurant owes nine hours plus one minimum wage even though they only worked ten total hours!
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Restaurants are heavily reliant on their workers, but they don't always provide enough hours and wages to support them and their families. This was true both before and during COVID-19; today, restaurant workers continue experiencing wages and tips below the cost of living, as well inadequate (or no), benefits, race/gender bias, and job instability. Restaurant owners are also facing thin profit margins, rising costs, competition from third-party delivery services, and a growing need for digital innovation.
Restaurant careers can be notoriously competitive environments for newcomers to enter. Experienced servers who look to increase income or advance in their careers often face fierce competition when trying to break in as servers themselves.
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Many restaurateurs report having difficulty recruiting employees due to low pay compared to other industries in their area, and finding young talent who prefer living at home with their parents and are resistant to moving into cities.
Most New York City restaurants do not pay enough to support a family on a minimum wage income or less. Employers also often skirt health insurance obligations by scheduling workers to only 28-29 hours each week as close as possible to full-time eligibility - an indicator of how poorly many restaurants place value on their employees.