It is hard to ignore the signs up in our neighborhoods. “NOW HIRING.” “HELP WANTED.” “APPLY NOW”. Whether a small business or well-established chain, it seems no one is exempt. Low-wage work is in high demand, and employers are competing for applicants. Though the industry has become more competitive than ever before, recent events have pushed positive changes for restaurant workers. Sparked by the death of Anthony Bourdain, a national discussion is exposing challenging and far too common work conditions restaurant workers face. With people speaking out, it is a pivotal point for the future of the restaurant industry. Small changes are being made to repair a long broken system. The effects of these changes are showing through dramatically improved wages for entry-level employees.
Hourly workers at or below federal minimum wage peaked in the early 1980s. According to statistics from the Bureau of Labor, in 1980 over 13% of hourly workers earned the federal minimum wage. In 2019, only 1.9% of hourly workers earned the federal minimum wage. This dramatic shift is partly due to states and individual businesses establishing higher minimum wages than the federal level. However, the battle to increase the minimum wage has not faded. In fact, low wages in the restaurant industry has propelled the fight to increase the federal minimum wage to $15 almost 10 years ago. In our current tight labor market, many restaurant employers are offering pay far above the federal minimum wage of $7.25.
A recent survey by Poachedjobs.com asked employers about starting wages. Only 4% of respondents said they pay less than the federal minimum wage (likely due to a tip pay structure). An overwhelming majority, 96%, reported paying more than the federal minimum wage. 53% reported starting at $15 or more! Employers are eager to measure up so these pay increases are pushing others to raise starting wages above the legal minimum wage of their area. The effects are rippling through businesses as 89% of Poachedjobs.com survey respondents said they expect to raise wages in the future.
The restaurant industry offers many worthwhile career opportunities. And much is being done to make the industry a better place for its workers. As employers desire to stay competitive and improve retention, increasing pay is becoming the new norm. Working in an entry-level position is an excellent gateway to the industry. If you’re looking to start a career in the restaurant industry, it’s better than it’s ever been.
We’ve placed some of the best talent into some of the best restaurants on the West Coast. As the economy begins to open up again, we’re gearing up to continue the work we love. We can offer more details to qualified candidates about some of our exclusive and high-level searches.
