Restaurants struggle to find workers in North Jersey
Sunday, September 16, 2007
By JOAN VERDON STAFF WRITER
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Michael
Velicu studied at the French Culinary Institute and became expert in
preparing Middle Eastern, Turkish, Greek and Moroccan dishes before
opening his Mediterraneo restaurant in Ridgewood two years ago. But his
training didn't give him the recipe North Jersey restaurant owners need
most these days – for finding and keeping employees.
"It probably is one of the most challenging jobs in
the restaurant," said Velicu, who had to replace nine cooks this
summer, along with three waiters who headed back to college last month.
Restaurateurs such as Velicu have been hit hard by a long-term labor
shortage in the restaurant industry, aggravated by competition from
several large chain restaurants that have opened in North Jersey.
The chain eateries, which require 200 or more employees, have also
reported hiring headaches. The Grand Lux Cafe, a new concept by the
Cheesecake Factory chain, is still advertising for workers at its
Paramus location, which opened last month.
Hungry for new hires
Facts about the restaurant industry:
Estimated restaurant sales, 2007:
$537 billion
Restaurant jobs, 2007:
12.8 million
Number of jobs to be added by 2017:
2 million
Job growth in 2007:
3 percent
Number of U.S. restaurants:
935,000
Restaurant growth rate:
10,000 new restaurants a year
Average sales per restaurant:
$800,000
Average jobs per restaurant
15 to 20
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Something to chew on:
• About one in 10 people working in America is employed in the restaurant industry.
• One-third of adults got their first job in the restaurant industry.
• Nearly one of two adults has worked in the industry at some point.
Source: National Restaurant Association
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Restaurant jobs are growing at nearly three times the country's
general employment growth rate, according to the National Restaurant
Association, and restaurants, from 300-seat chain theme eateries to
40-seat neighborhood bistros like Velicu's, are having an increasingly
hard time filling new jobs.
"The restaurant industry over the past year has really been a jobs
juggernaut," said Hudson Riehle, senior vice president of research for
the national restaurant group. "It has been a substantial component of
the overall national employment growth." In August, when national
employment fell by 4,000 jobs, the restaurant industry gained 24,000
positions.
In New Jersey, restaurant sales will exceed $11 billion in 2007. The
state's eateries employ 309,800 people, or 7 percent of the state labor
pool.
The public is spending close to half of its food dollars in
restaurants, compared with only 25 percent in 1955, according to the
national restaurant group. The restaurant industry will grow by another
2 million jobs over the next 10 years, the association predicts. The
industry employs almost 10 percent of the national workforce.
"It is an extremely labor-intensive industry," Riehle said.
Ten years ago, the New Jersey Restaurant Association "declared a
labor crisis in the industry and quite frankly I honestly don't recall
us ever lifting it," said Deborah Dowdell, president of the
association. New Jersey restaurant owners, she said, have accepted a
tight labor supply as a fact of life, and now focus on retaining the
employees they do hire, and making their staff more efficient. "I also
get a lot of inquiries about how do you look for employees," she said.
Job-posting Web sites such as Monster.com and Craigslist.com have
reported a surge in restaurant and food-service listings, and the state
restaurant association has worked with a hospitality industry Web site,
HCareers.com, to publicize job openings.
Velicu said he "constantly" is putting jobs on Craigslist, looking
to replace staff. Anthony LoPinto, the executive chef at Crave, a
restaurant that will open in Fairfield next month, posted a hiring open
house on Craigslist. He invited potential employees to come to the
restaurant last week for interviews. The ad drew only six applicants, a
smaller turnout than LoPinto expected.
LoPinto and Frank Funicelli, the restaurant's general manager,
estimate they will need at least 19 employees to operate the
restaurant. They said word of mouth and referrals from friends often
yield the best results.
LoPinto, who previously headed the kitchen at Restaurant Earth in
Totowa, and who has worked at such Manhattan restaurant institutions as
Lespinasse and Daniel, said good employees are so valuable these days
that "I always make sure I treat them well."
Contributing to the chef shortage, he said, is that many new chefs
change careers after discovering they can't take the heat and want out
of the kitchen.
"The culinary schools are pumping out astronomical numbers of chefs
who are getting jobs, staying a month and then realizing they don't
like being in the kitchen," he said. "Every now and then you find a
unicorn – a true culinarian who loves cooking and creating."
Paul Dillon, executive director of the Culinary Arts Institute at
Hudson County Community College in Jersey City, said the school gets
calls daily from restaurants looking for recent graduates. The college
has invested $23 million in a new culinary arts instructional building
and conference center.
Despite the growing demand, Dillon said, the pay for entry-level
cooks hasn't changed much in recent years. "The rate of pay for line
cooks is still what it was 15 years ago," Dillon said, with $8 to $10
an hour the norm. Although independent restaurant owners said they
usually can offer only $8 to $9 for kitchen help, the Grand Lux Cafe
ads promise $15 an hour for non-tipped employees, and as much as $150
per shift for tipped employees.
Restaurants frequently give employees bonuses for recommending new
recruits, and owners say staff referrals often are their best source of
new workers.
"If a person works for us and is a respected manager, we want his
friend, his associates, to work for us," said Ed Doherty, president of
Doherty Enterprises. Doherty's organization operates 50 Applebee's
franchise restaurants in New Jersey and elsewhere, as well as Panera
Bread and Chevy's Fresh Mex restaurants.
Doherty recently opened the Shannon Irish Rose Pub in Clifton. He
said he was able to find the 180 employees he needed fairly easily by
posting the jobs on college campuses and in newspaper ads.
"I think the problem with the restaurant-food industry in general
isn't a labor shortage, it's a turnover problem," Doherty said.
"Historically in the restaurant business, crew turnover – hourly
employee turnover – can range anywhere from 150 to 200 percent a year.
So if you have a restaurant with 80 employees, you're turning over 160
employees a year," he said.
Doherty said turnover at all of his restaurants averages 50 percent
to 70 percent. "We work very hard to reduce turnover," he said. "We try
and treat them as very important people, which they are."
Restaurants increasingly are automating their ordering systems, and
using wireless hand-held devices that relay a customer's drink orders
to the bar and menu choices to the kitchen. The Brasilia Grill in
Newark is able to staff a 300-seat restaurant with five waiters by
using a hand-held wireless device that sends orders to printers in the
kitchen, bar, or barbecue station as soon as they are recorded by the
waiters. The devices "decrease the possibility of any mistake, and lets
the waiter send the order to the kitchen faster," said Orlando Campos,
manager of the restaurant.
Scott Spitzberg, president of Union Township-based Restaurant
Software Solutions, which has installed the systems that use Motorola
wireless devices in 100 restaurants, said "the No. 1 thing restaurant
owners tell me they want is efficiency." The devices also let waiters
communicate with managers and get alerts, for example, if the kitchen
runs out of a menu item.
Riehle of the National Restaurant Association said restaurant owners
are turning toward innovations such as wireless devices and improving
benefits for employees as ways of making restaurant careers more
attractive. "It is obviously a lot easier to retain the workforce that
one already has versus going out and fishing in the shallow labor
pool," he said.
E-mail: verdon@northjersey.com
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