Restaurant sector adding jobs despite hiring, retention challenges

The quick-serve dining sector grew by 4% this year.

The restaurant industry grew by more than 1.7% in 2024, with quick-serve chains adding more jobs than other sectors.

According to the 2024 Restaurant Workforce Report by restaurant team management platform 7Shifts, which is based on a survey of more than 900 restaurant managers, 210,300 restaurant jobs were added this year. Fueled by post-2020 habit changes and a young generation of diners, quick-serve dining has grown by 4%, offsetting losses in the full-service sector.

Despite the increase in restaurant jobs added this year, hiring remains a top challenge for managers. Nearly two-thirds (65%) of respondents described the current labor market as “tight” or “very tight.” Recruiting (30%) and retention (27%) are top concerns, with a lack of qualified and committed applicants cited as a significant obstacle.

To attract and retain employees, restaurants are paying more and offering more benefits. 7Shifts notes that median base wages have risen 4%, from $13.64 to $14.20 per hour, and total compensation has followed a similar upward trend. Many restaurants are adjusting pay scales and offering additional benefits, including 401(k) plans and improved healthcare, to attract and retain workers. However, 69% of respondents do not offer childcare or mental health support for their employees.