NEW YORK The People Report Workforce Index for the 2008 second quarter continues the downward trend reported over the past three quarters, which is evidence of the slowing pace of the economy’s growth as well as the related softening of the competition for employees. The index dropped to its lowest level since its inception in 2006.
National upscale-casual and fine-dining chains followed suit with the rest of the industry, with the second quarter being the third consecutive quarter in which the Workforce Index has declined. Both the national upscale-casual and fine-dining chains again show index values lower than 50 for the turnover component of the index, which indicates a drop in their annual unit level turnover rates. However, that rate is falling at a slower rate than during the previous quarter.
According to the latest results from the People Report Independent Operator Report, during the fourth quarter in 2007, high-end, fine-dining restaurants in New York City followed the trend of their national chain restaurant counterparts, with average annual management turnover rates dropping by 1 percent and hourly employee turnover dropping by 2 percent.
For hourly employees, the decrease in rolling fourth quarter turnover was widespread, with two-thirds of the participating companies reporting lower annual turnover during the fourth quarter in 2007. In the case of restaurant managers, almost half of the companies reported a decrease in their rolling turnover, and almost one-fifth saw flat turnover rates when compared with the previous quarter. This drop in turnover suggests that employees may be holding onto jobs longer with knowledge of the decrease in restaurant hiring and limited opportunities outside current positions, as evidenced by the declining values shown by the employment level component of the Workforce Index over the last year.
Definition of the Independent Operator Report - NYC: The People Report Independent Operator Report was started in New York City in partnership with American Express in 2007. The research participants include 20 distinct high-end, fine dining, independently operated concepts, with an average annual unit volume of $10.5 million and a per-person average check of $69. As People Report and American Express continue to roll out the National Independent Operator Report throughout 2008 and more data is incorporated into this survey, fine-dining independent operators throughout the country will have relevant benchmarks specifically targeted to their particular niche. For more information, contact Kacy Oden at [email protected].