May Jobs report: Food services positions leap as workers seek 'flexibility'
A stunning jobs report revealed the US economy added 339,000 jobs in May, with 33,000 coming from food services and drinking places alone.
The positive results come amid recent labor shortages in the restaurant space as the industry continues to bounce back from pandemic lows. One restaurant owner says that against this backdrop, workers are increasingly prioritizing higher pay and more flexible hours.
"What they want right now is to be paid well, and to have a personal life respected," Ron Silver, owner and chef at New York City hot spot Bubby's, told Yahoo Finance Live. "There's a certain amount of freedom of having a personal life that may not have been thought about before the pandemic."
Beyond labor, restaurants have also grappled with inflation.
According to the latest CPI report, overall food inflation remained elevated for the month of April — rising 7.7% year-over-year. Prices for food away from home, such as at restaurants and bars, increased 8.6% on a yearly basis and were up 0.4% compared to March.
"We have had to [raise menu prices] and we've been very judicious about it," Silver said when asked how rising costs have impacted his restaurant. The restauranteur said he's seen the largest price increases for products like eggs, chocolate, coffee, and meat.
"We're really making sure to just sort of cover our expenses rather than turning our price point into something else. Bubby's has a certain sort of middle point where we fit in, and I don't want to start getting into the overly expensive category," he continued. "We adjust when we need to. We don't hesitate to do it if we need to. So far it's worked out."
Silver said customers' check averages are up about 5% to 6% following those inflation-induced price hikes, but noted those increases have yet to sway ordering behavior. Rather, Silver said the biggest consumer shift has been pandemic-driven with Bubby's delivery business continuing to soar.
"Our delivery business went up by about 500% and stayed there," he revealed. "So [delivery] is a completely new revenue center for us in a meaningful way."
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com
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