The rate for the job
While more resistant to the destructive effects of the economic downturn than many other hospitality sectors, food service operators have nonetheless had a major fight on their hands as customer purse strings were tightened. The hard-working folk of the food service sector have played a key role in keeping its head above water, but are they being getting their just desserts? Sally Wigg of specialist recruitment consultancy Hospitality & Leisure Recruitment provides a market snapshot plus the all important salary information.
The Food Service sector represents a large slice of the UK’s hospitality industry encompassing some of the well known coffee, fast food, sandwich and restaurant brands. According to Mintel by 2011 this sector will be worth a staggering £1.43 bn. The sector has of course not escaped the economic downturn but has, in the main, demonstrated good market resilience.
The branded restaurant market in particular, which has been vulnerable to such conditions in the past, has in many cases seen discounting strategies being implemented – with a raft of two-for-one deals being pushed hard. Whilst such discounting has maintained a level of sales, it has meant cutting costs elsewhere to achieve bottom line profits. Unsurprisingly, this has posed a number of operational challenges.
Despite Coffee Republic’s brief flirtation with the administrators last summer, the coffee market continued to grow by 6.2% in 2009. Over the course of the year many of the high street retailers and travel sector caterers developing franchised relationships with the biggest coffee brand names to maximize in this market.
Recruitment activity
Recruitment activity has undoubtedly slowed down during the recession, with many companies’ expansion plans being put on hold; head-count being cut or reduced and lower turnover at all levels. Traditional peak times for management job seekers within the hospitality sector have been significantly lower than in past years.
There is understandable nervousness to move jobs and many feel more secure staying with their currently employer. From a recruitment consultancy point of view the use of online databases and job boards has been less effective and those consultants that have succeeded have used the more resourceful headhunting and networking approaches.
Green shoots of recovery?
The signs for 2010 are encouraging. There are more jobs and job seekers on the market than there have been for some months. However things are not going to return to normal overnight; any recovery will be a gradual process. Spring is generally a buoyant time in the food service job market and the signs for March/April 2010 are positive.
It has been the middle management job market which has been most affected by the downturn and therefore not surprisingly recovery will be slower at this level.
Have some job types fared better than others salary-wise?
As the job market within the food service sector has been slower than normal, salary levels have remained relatively static over the last 12 months. That said, quality candidates at all levels in this market place are always in demand and will generally be able to negotiate a good salary and package. In some instances cost-conscious employers haven’t awarded annual pay rises but this hasn’t tended to lead to an exodus of staff. During the depths of the credit crunch, job security rather than remuneration became the overriding preoccupation for employees of many, if not most, sectors. The food service sector was no different.
There has been, however, a surge of candidates from independent restaurant backgrounds looking to join the brands and corporate companies in a bid for better long term security, higher salaries and more generous benefits packages.
Benefit levels
Benefits can differ significantly within the food service sector however, there are broadly applicable packages as outlined below:
• Assistant/Deputy – bonus scheme normally; some contributory pension & single health care; discounted meals on duty; company discount cards
• General Manager/Unit Manager - bonus scheme; cont. pension; single health care; discounted meals on duty; company discount cards
• Area Managers – bonus; pension; family health care; car/car allowance; share options; company discount cards.
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