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Caterer Hei Report Q2 2012

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Caterer.com Hospitality Employement Index report for Q2 2012

Caterer.com Hospitality Employement Index report for Q2 2012

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  • 1. QUARTERLY HOSPITALITYEMPLOYMENT INDEXQ2 2012
  • 2. Hospitality Employment Index – Q2 2012Forewords Brian Wisdom, Chief Executive of People 1st Like the rest of the country, I have been inspired by the amazing men and women competing in the London 2012 Olympic and Paralympic Games, but perhaps even more impressive have been the fantastic volunteers and ambassadors that have dedicated their time to ensuring that we presented the best face possible to the rest of the world. The positive image of the UK that was projected during the Games should help ensure a strong legacy for British hospitality for years to come. At a time when the UK has slipped back into recession, job advertisement levels in our sector have remained relatively unchanged. While this differs from the progressive increase seen during the same quarter in recent years, it indicates a level of stability absent in some other employment areas. During the last quarter the restaurant industry has experienced similar recruitment levels to the hospitality sector as a whole. We are noticing, however, a number of trends that are paving the way for a new customer base and new approaches to recruitment. 16 to 34 year olds, or Generation Y, are becoming an important market for restaurateurs, and at the same time present a wealth of opportunities thanks to their position as both potential recruits and an emerging clientele. This edition of our report gives employers advice on how the restaurant industry can create a sustainable strategy that will withstand the test of time by making the most of the opportunities Generation Y provide. Ian Burke, Director of Caterer.com Generation Y forms a large focus in this report and from a positive viewpoint at that. Encouragingly, a recent survey indicated that 57 percent of 16-34 year olds would consider a career in hospitality.1 It is a delight to see the industry evolve and be considered as a great place to work with excellent prospects. This group is also taking the restaurant market through the quieter periods and spending money eating out. Restaurants are the first sector to really recognise the opportunities this generation offers and are using new media and branding to target young people. The restaurant sector takes centre stage in this report and there are some interesting facts and key trends for businesses to benefit from. Overall job advertisements are down by eight percent, while application competition remains healthy in most areas, although there has been a slight decrease in applicants for chef positions. As we all know this area has always struggled to recruit skilled chefs, but now more than ever is the time to attract, train and retain. We do not want to see a further shortage and must really appeal to chefs. It is exciting to see businesses attracting fresh talent through great websites,REFERENCES social media and creating a personality behind the brand, and these efforts1 http://www.bighospitality.co.uk/Trends- are placing the industry in a brighter light than ever. Reports/Industry-bodies-hit-back-at- research-into-young-people-working-in- We hope we will see this trend continue and the hospitality gross value added hospitality (GVA) rise over the coming quarters. With the legacy of the London 2012 Olympic and Paralympic Games, we could be set to see the next quarter impact positively on 2012.Caterer.com in partnership with People1st 2
  • 3. Hospitality Employment Index – Q2 2012ContentsHospitality Employment Index (HEI) 4Job advertisements 5Job applications 7Job competition 8Focus on restaurants 10Trends in the restaurant industry 14About us 19Caterer.com in partnership with People1st 3
  • 4. Hospitality Employment Index – Q2 2012Hospitality Employment Index (HEI) Caterer.com has teamed up with People 1st to produce quarterly Hospitality Employment Index (HEI) reports that supply the sector’s stakeholders with the most current data. These reports provide a strong indication of the industry’s overall economic strength and allow for a more detailed analysis of trends across specific job roles and geographical areas so that we can see which industry sectors are growing. Written by People 1st, these reports are based on recent data provided by Caterer.com, including the numbers of jobs advertised and applications received. Raw figures are then analysed and interpreted to provide valuable intelligence across a backdrop of broader labour market trends across the hospitality industry.Caterer.com in partnership with People1st 4
  • 5. Hospitality Employment Index – Q2 2012Job advertisementsNew job ads per quarter 48,101 45,719 42,564 40,532 40,186 40,007 42,000 39,81537,120 37,411 43,000 36,483 34,061 32,448 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012OVERVIEWThere were 42,000 new job ads posted between April and June2012 - a drop of eight percent from the same quarter of theprevious year. 42,000 This is the most substantial fall from comparable quarters since the Hospitality Employment Index began. Job ads in Q2 2012 Despite the London 2012 Olympic and Paralympic Games bringing a sense 8% of positivity to the nation, the UK economy continues to experience troubled times. Provisional figures for the second quarter of 2012 suggest the UK economy has slipped back into recession with a 0.7 percent shrinkage in Compared to Q2 of 2011 overall GDP compared with Q1 2012. However, there are still signs that hospitality is faring better than many other areas as the service industries experienced a smaller decrease of 0.1 percent.2 In light of this economic uncertainty, some employers across the hospitality industry are being understandably cautious about their company’s growth and the ‘wait and see’ approach that we saw in the Hospitality Employment Index report last quarter is continuing. The graph above shows job advertisements placed in each quarter since 2009, and indicates that recruitment activity has become more consistent recently. Between Q4 2010 and Q1 2011, for example, the number of advertisements posted increased by ten percent, followed by an additional 14 percent increase in Q2 2011. Between Q4 2011 and Q1 2012, however, levels remained relatively steady, with an increase of only five percent in Q2 2012.REFERENCES2 Overall, despite recruitment activity having slowed a little after peaking in Q3 http://www.bbc.co.uk/news/10613201 2011, job ads are still up compared to where they were in 2009 (by 30 percent) and 2010 (by four percent) in Q2. Industry feedback also suggests that brand/ chain restaurants in particular continue to thrive and many companies continue to grow.Caterer.com in partnership with People1st 5
  • 6. Hospitality Employment Index – Q2 2012Job advertisements“We are advertising more positions due to our growthand our competitors are doing the same.”Marcus Weedon, Senior Recruitment Manager, Carluccio’s Limited On another positive note, levels of overseas tourism reached near record levels this quarter, with visitor numbers up seven percent and spending up five percent in May 2012 compared to May 2011.3 It is likely that events such as the Queen’s Jubilee contributed to this substantially. For some business areas, the London 2012 Olympic and Paralympic Games have not brought the increase in business levels that the country hoped. For example, recent figures for the retail industry suggest that August was the weakest month for sales growth so far this year.4 Within London’s hospitality industry, however, this has not always been the case. Despite some businesses getting off to a shaky start, 60 percent of pubs saw an upturn in trade during the second week of the London 2012 Olympic and Paralympic Games.5 As 2012 continues, it is likely that the weak Euro will continue to affect the tourist trade adversely, although it is hoped that the London 2012 Olympic and Paralympic Games will help provide a boost to the industry long after they themselves have finished.REFERENCES3 http://www.visitbritain.org/Images/ May%202012%20IPS%20Memo%20 with%20charts_tcm29-33614.pdf4 http://www.guardian.co.uk/business/2012/ sep/04/uk-retail-sales-olympics-august5 http://www.bighospitality.co.uk/Trends- Reports/Pubs-see-sales-turnaroundduring- London-2012-OlympicsCaterer.com in partnership with People1st 6
  • 7. Hospitality Employment Index – Q2 2012Job applicationsJob applications made per quarter 933,200 857,254 836,812 810,106 796,500 729,818 714,970 685,672592,115 595,226 575,979 557,639 516,652 513,904 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012OVERVIEWThis quarter the number of applications reached 796,500. 796,500 This represents a two percent fall compared to the same quarter last year, no doubt the result of the eight percent slowdown in recruitment figures. Job applications in Q2 2012 Overall, however, applications in Q2 in 2012 are up by more than a third (34 34% percent) on Q2 2011 and over one half (54 percent) on 2010. Compared to Q2 of 2011 54% Compared to Q2 of 2010Caterer.com in partnership with People1st 7
  • 8. Hospitality Employment Index – Q2 2012Job competitionCompetition for job rates per quarter 23.3 21.3 19.7 19.0 17.7 17.4 18.016.0 15.9 16.1 15.8 14.9 15.1 14.7 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012OVERVIEWWith job advertisements falling by eight percent but applicationsonly falling by two percent, the level of competition for applicantsacross hospitality has remained high. This quarter the level stoodat 19 applications for every job posted. 19 For Q2 this is the highest level so far, up from 16 in 2009, 15 in 2010, and 18 in 2011. Applications per job In line with previous Hospitality Employment Index reports, competition levels 2% Compared to Q2 of 2011 are inextricably linked to unemployment figures. The latest data available indicates that there were 2.58 million unemployed people across the UK in the three months to May 2012. This equates to just over eight percent of the economically active population and is an increase of 0.4 percent on the same quarter last year.6 Competition levels are also stronger than those of comparable sectors. In retail, a sector that has much in common with hospitality, competition currently stands at 15 applications for each job. These figures also prove that more jobseekers are looking towards hospitality as an area for employment as opposed to other comparable sectors. Furthermore, the sector appears to be particularly popular with young people. A recent survey indicated that over half (57 percent) of 16-24 year olds would consider a career in hospitality.7REFERENCES6 http://www.ons.gov.uk/ons/ dcp171778_269309.pdf7 http://www.bighospitality.co.uk/Trends- Reports/Industry-bodies-hit-back-at- research-into-young-people-working-in- hospitalityCaterer.com in partnership with People1st 8
  • 9. Hospitality Employment Index – Q2 2012 Job competition Why jobseekers want to work in hospitality/catering For the career prospects 40% Because it’s exciting 38% For the social interaction 29% For the money 24% For the culture 21% For the flexible hours 17% For the close proximity to where I live 11%Because I want to work for a specific brand 8% As can be seen from the graph above, according to a user-profile survey carried out by Caterer.com, career prospects and excitement about the industry were given as the main reasons people want to work in catering and hospitality.8 WHY JOBSEEKERS WANT TO WORK IN HOSPITALITY/CATERING In summary, many people are attracted to hospitality both because of the excitement roles in the sector can offer and the career prospects available. As young people feature heavily within this group, effort should therefore be made to retain and attract young talent within the sector. Websites such as uksp.co.uk can help with this as they offer a comprehensive guide to the sector, signposting users to the paths they can take to progress further within the sector. “The trick, of course, is to provide those who do make a start in our sector with such a positive experience that they will never want to leave.” Philippe Rossiter, Chief Executive, Institute of Hospitality REFERENCES 8 Caterer.com, User Profile Survey 2012 Caterer.com in partnership with People1st 9
  • 10. Hospitality Employment Index – Q2 2012Focus on restaurantsSummation of selected restaurant rolesQ2 2012 331,294 / -5% 25,103 / -8% 13.2 / 4%Q2 2011 347,103 / 30% 27,347 / 14% 12.7 / 14%Q2 2010 266,925 / 15% 23,884 / 25% 11.2 / -7%Q2 2009 231,202 19.161 12.1 Number of job applications Number of jobs advertised Competitiveness Change from previous Q2OVERVIEWRestaurants form a major component of the hospitality sector.Over the last quarter, the restaurant industry has exhibited similartrends to the ones seen across hospitality as a whole. 25,103 Restaurant-related posts in Q2 2012 The number of advertisements across a selection of restaurant-based roles fell eight percent in Q2 2012 when compared to the same quarter in 2011. Applications fell five percent from 347,100 to 331,300 in the same period, 8% Adverts compared to Q2 2011 meaning competition levels have increased only slightly from 12.7 in 2011 to 13.2 in 2012. 5% Applications compared to Q2 2011Caterer.com in partnership with People1st 10
  • 11. Hospitality Employment Index – Q2 2012 Focus on restaurantsSummation of managerial rolesRestaurant management 90,200 / -1% 7,126 / -8%Catering management 14,438 / -43% 920 / -45%Food and beverage management 18,502 / -2% 904 / -1%Kitchen manager 2,691 / -15% 537 / -8% Number of job applications Number of jobs advertised Change from Q2 2011 - Q2 2012 MANAGERIAL ROLES 125,830 The number of advertisements posted for managerial roles in the restaurant industry has fallen in each area. Catering management advertisements in particular saw a fall of 45 percent from the same quarter of the previous year. Total number of managerial applications 13 Applications per job In line with this fall in job advertisements, the proportion of applications has also fallen in each area. Throughout the recession many businesses have found staff retention improving considerably. For some, this has made it less necessary to continue recruiting in management. “Obviously this is good for business as we would not have to train further people, but invest our time in delivering the tools that they need to succeed in their roles.” Marcus Weedon, Senior Recruitment Manager, Carluccio’s Limited Caterer.com in partnership with People1st 11
  • 12. Hospitality Employment Index – Q2 2012 Focus on restaurantsSummation of non-managerial rolesWaiting staff 82,145 / -1% 1,362 / -4%Catering staff 30,749 / 4% 767 / -9%Sommelier 1,390 / -34% 118 / -49% Number of job applications Number of jobs advertised Change from Q2 2011 - Q2 2012 NON-MANAGERIAL ROLES 114,284 Job advertisements have also fallen in non-managerial roles, illustrating some business’ reluctance to expand staffing levels in such positions given the economic climate. Competition levels for waiting staff are extremely high. Total number of non-managerial applications 50 The number of advertisements for sommeliers has dropped by almost half (49 percent). This could be related to the economic climate, which has seen many people move away from the fine dining experience to more casual (and Applications per job cheaper) alternatives. Caterer.com in partnership with People1st 12
  • 13. Hospitality Employment Index – Q2 2012 Focus on restaurantsSummation of chef rolesChef de partie 25,657 / 7% 4,965 / 0%Sous chef 22,043 / 7% 3,827 / 2%Head chef 25,251 / -3% 2,736 / -8%Chefs 18,229 / -22% 1,841 / -18% Number of job applications Number of jobs advertised Change from Q2 2011 - Q2 2012 CHEF ROLES 91,180 The picture for chefs is more varied than other restaurant-based roles. Chef de partie advertisements have remained the same; sous chefs have increased slightly, while advertisements for chefs and head chefs have fallen. Total number of chef applications 7 Applications per job Unusually, the number of applications for chefs has fallen more than the number of advertisements, which is why we are seeing a decrease in competition levels in this area. Skills shortages amongst chefs is one of the most acutely felt problems across the restaurant industry, so it is hoped that this is not the beginning of a further decline in the supply of skilled chefs across the country. Caterer.com in partnership with People1st 13
  • 14. Hospitality Employment Index – Q2 2012Trends in the restaurant industryWhile it is undoubtedly true that many people havebeen cutting back on their expenses, the fact remainsthat people continue to spend money. SUMMARY Now more than ever, consumers are being attracted to places that are tuned into their lifestyle in terms of ambience and, of course, budget. This means that competition for customers across restaurants has become increasingly fierce. Spurred on by attractive offers from the industry, recent research has indicated that the average UK consumer is going out for food and drink on 19.8 separate occasions each month. This is actually 2.3 more times per month than the same time last year and bodes well for the restaurant industry as a whole.9 There is, however, considerable variation across consumer groups, with 18-34 year olds leading the way in this market. Generation Y (18-34 year olds) goes out twice as often as Generation X (35-54 year olds), and three times as often as Baby Boomers (aged 55 and over). The research suggests that, overall, Generation Y appears to be more carefree than their older counterparts. Furthermore, their tastes and preferences are likely to become increasingly influential in future as their spending power increases. Generation Z will also become more important to the market, following Generation Y’s lead. To keep pace with their competitors and to continue to attract customers, the industry should pay attention to such trends and make preparations to meet these expectations in the coming years. Industry commentators have noted a number of additional trends for the coming year, many of which reflect the increasing influence of Generation Y.10 Most notably, three key trends for 2013 are a move towards increasing informality, a greater emphasis on speed of service and putting the customer in control, and the rising influence of mobile technology, including apps.REFERENCES9 Deloitte, 2012, ‘Taste of the nation: One year on … a social lifestyle’10 http://lostincatering.com/lostincatering/ restaurant_trends_2013.htmlCaterer.com in partnership with People1st 14
  • 15. Hospitality Employment Index – Q2 2012Trends in the restaurant industryFar from the tradition of fine dining, many peoplenow prefer a less formal dining experience. INCREASED INFORMALITY This consists of a much more relaxed atmosphere, possibly influenced by the rise of the gastropub where dining out is less of an occasion than a traditional restaurant, but the food is of a high standard. This surge towards informal dining can be linked to the long tables introduced in Wagamama restaurants 20 years ago. There is a much more social aspect to such restaurants, with the design promoting greater interaction between patrons and a very informal atmosphere. Along with this trend, fixed dining hours are becoming less recognised by consumers, with later dining far more commonplace. In terms of recruitment, some businesses are also taking a less formal approach and applicants seem to be embracing this; one recent survey indicated that two thirds of candidates welcome obscure lines of questioning as part of their job interview, and 66 percent felt positive about their ability to respond to a weird question (such as ‘how would you get an elephant into a fridge?’).11Fast food has long been a part of the UK dining outmarket, but its ubiquity is now apparent. PUTTING THE CUSTOMER IN CONTROL Almost every high street in the country is home to at least one well-known quick service brand; for example, McDonalds alone has around 1,200 restaurants across the UK.REFERENCES Generation Y is familiar with fast food chains, so it will come as little surprise11 www.hrmagazine.co.uk/hro/news/1074368/ that they expect comparably quick levels of service in other casual dining how-elephant-fridge-recruiter-advises- establishments. Having said that, while operators should be prepared to offer employers-weird-interview-questions-win- a speedy service, they must also be aware that guest preferences are more war-talent12 Peach Report, ‘How smartphones diverse than ever before, and consumers will expect to be able to take as are replacing the walk-in diner’, www. much time as they like over their dining experience. peach-report.com/Trends/1440949/how_ smartphones_are_replacing_the_walkin_ Similarly, consumers are using technology more to make reservations at short diner.html notice. The Peach Report states that one well-known restaurant chain gets 50 percent of its online bookings for later the same day.12Caterer.com in partnership with People1st 15
  • 16. Hospitality Employment Index – Q2 2012Trends in the restaurant industry Restaurants must ensure they are properly accommodating the diverse nature of today’s diner. However, this trend should also continue into recruitment processes to appeal to people that would thrive working in such environments. In short, sourcing candidates should be cost efficient, simple and effective in fulfilling the restaurant’s business needs.One of the defining characteristics ofGeneration Y is their use of technology, withonline bookings arguably the most obviousmanifestation. THE INFLUENCE OF APPS According to the European Dining Index from Livebookings, online restaurant booking in the UK more than doubled in the first quarter of 2012 compared to 2011. Furthermore, bookings made via mobile phones had trebled. The report also pointed out that nearly a third of restaurants in the UK do not have a website, and the authors estimate that this could result in an approximately £31,000 revenue loss each year.13 Of course, online bookings are only part of the story. Through mobile phone apps, users can look at menus, check deals or offers at nearby restaurants, read recommendations, and express their loyalty to a brand by ‘checking-in’ at a particular location. Clearly this offers huge opportunities for businesses to build their brand awareness and attract new customers. Such trends are set to grow and develop further in coming years, affecting the recruitment process itself; there are already a wealth of apps available that make it easier for jobseekers to search and apply for roles. At the same time, the increase in mobile-enabled sites means recruiters can post jobs on the go. Caterer.com’s recent user profile survey showed that 46 percent of respondents have used their mobile phones to apply for jobs and 60 percentREFERENCES have used a tablet. Moreover, 82 percent of respondents said they will make13 http://www.livebookings.co.uk/News/ more use of their mobile phone or tablet in the future to search for jobs. This Hidden_restaurants_A_third_still_have_ no_website_according_to_Livebookings_ is a growing area and one that businesses should ensure they prepare for European_Dining_Index appropriately.Caterer.com in partnership with People1st 16
  • 17. Hospitality Employment Index – Q2 2012 Trends in the restaurant industry Age distribution of workforce (restaurants compared to whole economy) Whole economy Restaurants 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-5960 and over 0% 5% 10% 15% 20% THE UNIQUE ADVANTAGE OF RESTAURANTS As Generation Y are socially driving the dining out experience, it appears the restaurant industry is perfectly positioned to capitalise on these trends. The industry has an advantage as its workforce is largely made up of young people. As evidenced in the graph above, more than half (53 percent) of the industry’s workforce is under 30, compared with less than a quarter (23 percent) across the economy as a whole.14 Looking at the key job roles within restaurants, more than three quarters of waiting staff are under the age of 30. Core occupations within restaurants (proportion of workforce aged under 30) Cooks 16% Managers and owners 23% Chefs 37% Kitchen and catering assistants 46% Waiting staff 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% REFERENCES In appealing to the emerging and developing consumer markets of 14 Generation Y and Generation Z, restaurants therefore have a workforce that People 1st analysis of the Labour Force Survey 2011, Office for National Statistics can fully relate to their clientele. For this reason, and as prescribed by so many business development programmes, it is in the interest of restaurateurs to seek their staff’s involvement in the business, using their insight into the customer base to finely tune the service they offer. Caterer.com in partnership with People1st 17
  • 18. Hospitality Employment Index – Q2 2012Trends in the restaurant industryThis quarter’s Hospitality Employment Index suggeststhat recruitment levels have slowed down recently,but that the sector remains in good shape relative tocomparable industries. SUMMARY The restaurant industry in particular has seen a multitude of changes in recent times but, despite this, many operators are continuing to thrive. Much of this is down to addressing the changing needs and demands of their clientele and, with recent research indicating Generation Y are the largest market for eating out, operators need to adapt to what appeals to them in order to maintain ongoing success. In this quarter’s report we have highlighted a number of key trends that characterise Generation Y’s expectations. For example, restaurateurs would do well to consider Generation Y’s preference for less formal dining experiences, and the ubiquity of social media and e-communications among them to attract more custom and aid their recruitment procedures. A young workforce already exists within the restaurant industry, so operators have a key demographic within their workforce to help capitalise on emerging trends.Caterer.com in partnership with People1st 18
  • 19. Hospitality Employment Index – Q2 2012About us CATERER.COM IS THE UK’S LEADING HOSPITALITY RECRUITMENT WEBSITE Since its launch in 2001, Caterer.com has pioneered online recruitment for the hospitality industry. Working with hotels, restaurants, pubs, bars and food service companies across the UK, it has developed a strong reputation as a leader in its field, helping both small and large businesses to improve their recruitment and retention processes. If you are interested in finding out more about how Caterer.com can help you and your business, please either email sales@caterer.com, or call 0845 877 0064 to speak to one of their experts. To register to receive Hospitality Employment Index updates, visit www.caterer.com/HEI PEOPLE 1ST (WWW.PEOPLE1ST.CO.UK) IS THE SECTOR SKILLS COUNCIL FOR HOSPITALITY, PASSENGER TRANSPORT, TRAVELAND TOURISM People 1st is a government recognised, industry-focused body established to support the development of skills and training within the sector. It works to transform skills in the sector and is committed to ensuring that public funds support the industry to develop only those qualifications and programmes that meet the needs of employers. People 1st regularly conducts surveys for other organisations such as trade associations and public sector agencies. If you would like to use its expertise or commission it to conduct surveys on your behalf please contact Alastair Galbraith at People 1st (Alastair.Galbraith@people1st.co.uk or 01895 817 018) to discuss your requirements. To download the latest Hospitality Employment Index, visit www.people1st.co.uk/HEI Technical notes Caterer.com data is based on job ads displayed on the website. Ads are made by recruiters placing an advertisement within one of 36 job categories and 12 UK regions.Caterer.com in partnership with People1st 19

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