Restaurant Megatrends 2019: Labor Crunch Determines In-Restaurant Changes
Photo Credit: Self-service kiosks at a Shack Shake in New York City. Square
Skift Take
From sourcing smart technology integrations to managing staff more effectively, operators are rethinking how their restaurants are run in the face of rising labor costs and an ongoing war for industry talent.
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We've just released our annual industry trends forecast, Skift Restaurant Megatrends 2019. You can read about each of the trends on Skift Table as well as download a copy of our magazine here.
Earlier this year, the Cheesecake Factory experienced the worst stock decline within one day in nearly 20 years. In a dismal second-quarter earnings report, the restaurant chain revealed that it had missed revenue estimates by enough that it had to lower its profit guidance for the year. The top reason for the misses? Rising labor costs.
A day before Cheesecake’s earnings were released, the U.S. Department of Labor had announced a significant post-recession milestone. Over the past year, American workers have logged the highest pay increase in the decade since September 2008, according to the the department’s employment cost index, which measures labor costs (including wage
