inflation, (real) sales are actually increasing at
a rate of 1.8 percent in 2001, slightly less
than the 2.1 percent growth in 2000. This
decrease in the growth rate of real sales is a
result of a slower growth in the national
economy, as well as slower unit growth with-
in the quick-service segment. Slower unit
growth is believed to be the result of a move
toward franchise-owned versus company-
owned stores and a trend toward co-brand-
ing or multiconcept branding at a single
establishment (e.g., Carl’s Jr. with The Green
Burrito, and KFC with Taco Bell).
Unemployment. Although the restaurant
industry as a whole continues to benefit from
the nation’s steady economic growth, indi-
vidual restaurant owners are finding it diffi-
cult to attract and retain employees during
this prosperous time when the employment
rate has reached a 30-year low. Furthermore,
high turnover rates plague the restaurant
industry. In fact, in 1998, fast-food restau-
rants reported a median annual turnover rate
of 117 percent. Additionally, the median
tenure for workers in food-service occupa-
tions is 1.3 years, well below the median of
3.6 years for all wage and salary workers in
the nation. Because of low unemployment
and high turnover rates, restaurant operators
believe that recruiting and retaining employ-
ees will continue to be one of the top chal-
lenges their businesses face. As a result, many
employers are devoting more time and
money to employee development by expand-
ing overall training programs and imple-
menting cross-training programs. In addition
to training, it is equally important for
employers to communicate the career paths
available to employees in the restaurant
industry. If workers can begin to see their
jobs as part of a longer career path in the
restaurant industry, they may be more
inclined to remain in a particular job and
loyal to a single organization.
Labor Force
Labor Statistics.According to the Bureau
of Labor Statistics (as reported in a March
2000 article in Restaurants USA Magazine),
4 percent of all employed men, 6 percent of
all employed women, and 20 percent of all
employed teenagers worked in food-prepara-
tion and food-service jobs in 1998.
Furthermore, the number of total workers in
the restaurant industry is projected to reach
12.5 million by the year 2008 (an increase of
nearly 15 percent from 1998). According to
the Restaurant Industry Employee Profile (a
National Restaurant Association instru-
ment), the typical employee in a food-service
occupation is:- High school graduate or less (71 per-
cent) - Single (71 percent)
- Living in a household that includes:
a. relatives (82 percent);
b. two or more wage earners (80 per-
b.cent);
c. average U.S. household income - Part-time employee working an aver-
age of 25.5 hours per week - An individual with relatively short job
tenure
Women in the Workforce. The number of
women in the workforce has steadily been
increasing over the last two decades and is ex-
pected to continue to outpace growth in
male employment. With regard to employ-
ment, the restaurant industry is more likely
than other businesses to hire women. As an
illustration of this trend, in 1998, women
made up 46 percent of the total employed
labor force, and they constituted 58 percent
of those employed in food-service occupa-
tions. Furthermore, women dominated men
in a majority of positions: supervisors, wait
staff, kitchen workers, and (front) counter
staff. However, women are less likely than
men to be employed full time, as is evident in
1998, when 66 percent of all part-time
employees were female.Minorities in the Workforce.As minority
populations continue to grow in the United
States, so does the number of minorities
working in the restaurant industry. In 1998,
Hispanics accounted for 17 percent of all
persons employed in food-service occu-
pations, and African-Americans accounted458 ENTREPRENEURSHIP CASE