Caterer Hei Report Q2 2012

QUARTERLY HOSPITALITY
EMPLOYMENT INDEX
Q2 2012

Hospitality Employment Index – Q2 2012

Forewords
Brian Wisdom, Chief Executive of People 1st

Like the rest of the country, I have been inspired by the amazing men and
women competing in the London 2012 Olympic and Paralympic Games,
but perhaps even more impressive have been the fantastic volunteers and
ambassadors that have dedicated their time to ensuring that we presented the
best face possible to the rest of the world. The positive image of the UK that
was projected during the Games should help ensure a strong legacy for British
hospitality for years to come.

At a time when the UK has slipped back into recession, job advertisement
levels in our sector have remained relatively unchanged. While this differs
from the progressive increase seen during the same quarter in recent years, it
indicates a level of stability absent in some other employment areas.

During the last quarter the restaurant industry has experienced similar
recruitment levels to the hospitality sector as a whole. We are noticing,
however, a number of trends that are paving the way for a new customer base
and new approaches to recruitment.

16 to 34 year olds, or Generation Y, are becoming an important market for
restaurateurs, and at the same time present a wealth of opportunities thanks
to their position as both potential recruits and an emerging clientele. This
edition of our report gives employers advice on how the restaurant industry
can create a sustainable strategy that will withstand the test of time by making
the most of the opportunities Generation Y provide.

Ian Burke, Director of Caterer.com

Generation Y forms a large focus in this report and from a positive viewpoint
at that. Encouragingly, a recent survey indicated that 57 percent of 16-34 year
olds would consider a career in hospitality.1 It is a delight to see the industry
evolve and be considered as a great place to work with excellent prospects.

This group is also taking the restaurant market through the quieter periods
and spending money eating out. Restaurants are the first sector to really
recognise the opportunities this generation offers and are using new media
and branding to target young people. The restaurant sector takes centre
stage in this report and there are some interesting facts and key trends for
businesses to benefit from.

Overall job advertisements are down by eight percent, while application
competition remains healthy in most areas, although there has been a slight
decrease in applicants for chef positions. As we all know this area has always
struggled to recruit skilled chefs, but now more than ever is the time to attract,
train and retain. We do not want to see a further shortage and must really
appeal to chefs.

It is exciting to see businesses attracting fresh talent through great websites,
REFERENCES social media and creating a personality behind the brand, and these efforts
1
http://www.bighospitality.co.uk/Trends- are placing the industry in a brighter light than ever.
Reports/Industry-bodies-hit-back-at-
research-into-young-people-working-in- We hope we will see this trend continue and the hospitality gross value added
hospitality
(GVA) rise over the coming quarters. With the legacy of the London 2012
Olympic and Paralympic Games, we could be set to see the next quarter
impact positively on 2012.

Caterer.com in partnership with People1st 2


Contents

Hospitality Employment Index (HEI) 4

Job advertisements 5

Job applications 7

Job competition 8

Focus on restaurants 10

Trends in the restaurant industry 14

About us 19



Hospitality Employment Index (HEI)
Caterer.com has teamed up with People 1st to produce quarterly Hospitality
Employment Index (HEI) reports that supply the sector’s stakeholders with the
most current data.

These reports provide a strong indication of the industry’s overall economic
strength and allow for a more detailed analysis of trends across specific
job roles and geographical areas so that we can see which industry sectors
are growing.

Written by People 1st, these reports are based on recent data provided by
Caterer.com, including the numbers of jobs advertised and applications
received. Raw figures are then analysed and interpreted to provide valuable
intelligence across a backdrop of broader labour market trends across the
hospitality industry.



Job advertisements
New job ads per quarter
48,101
45,719
42,564
40,532 40,186 40,007 42,000
39,815
37,120 37,411 43,000 36,483
34,061
32,448

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2011 2012

OVERVIEW

There were 42,000 new job ads posted between April and June
2012 - a drop of eight percent from the same quarter of the
previous year.

42,000
This is the most substantial fall from comparable quarters since the Hospitality
Employment Index began.

Job ads in Q2 2012 Despite the London 2012 Olympic and Paralympic Games bringing a sense

8%
of positivity to the nation, the UK economy continues to experience troubled
times. Provisional figures for the second quarter of 2012 suggest the UK
economy has slipped back into recession with a 0.7 percent shrinkage in
Compared to Q2 of 2011
overall GDP compared with Q1 2012. However, there are still signs that
hospitality is faring better than many other areas as the service industries
experienced a smaller decrease of 0.1 percent.2

In light of this economic uncertainty, some employers across the hospitality
industry are being understandably cautious about their company’s growth and
the ‘wait and see’ approach that we saw in the Hospitality Employment Index
report last quarter is continuing.

The graph above shows job advertisements placed in each quarter since 2009,
and indicates that recruitment activity has become more consistent recently.

Between Q4 2010 and Q1 2011, for example, the number of advertisements
posted increased by ten percent, followed by an additional 14 percent
increase in Q2 2011. Between Q4 2011 and Q1 2012, however, levels
remained relatively steady, with an increase of only five percent in Q2 2012.
REFERENCES
2
Overall, despite recruitment activity having slowed a little after peaking in Q3
http://www.bbc.co.uk/news/10613201
2011, job ads are still up compared to where they were in 2009 (by 30 percent)
and 2010 (by four percent) in Q2. Industry feedback also suggests that brand/
chain restaurants in particular continue to thrive and many companies continue
to grow.



Job advertisements
“We are advertising more positions due to our growth
and our competitors are doing the same.”
Marcus Weedon, Senior Recruitment Manager, Carluccio’s Limited

On another positive note, levels of overseas tourism reached near record
levels this quarter, with visitor numbers up seven percent and spending up five
percent in May 2012 compared to May 2011.3 It is likely that events such as
the Queen’s Jubilee contributed to this substantially.

For some business areas, the London 2012 Olympic and Paralympic Games
have not brought the increase in business levels that the country hoped. For
example, recent figures for the retail industry suggest that August was the
weakest month for sales growth so far this year.4

Within London’s hospitality industry, however, this has not always been the
case. Despite some businesses getting off to a shaky start, 60 percent of pubs
saw an upturn in trade during the second week of the London 2012 Olympic
and Paralympic Games.5

As 2012 continues, it is likely that the weak Euro will continue to affect the
tourist trade adversely, although it is hoped that the London 2012 Olympic
and Paralympic Games will help provide a boost to the industry long after they
themselves have finished.

REFERENCES
3
http://www.visitbritain.org/Images/
May%202012%20IPS%20Memo%20
with%20charts_tcm29-33614.pdf
4
http://www.guardian.co.uk/business/2012/
sep/04/uk-retail-sales-olympics-august

5
http://www.bighospitality.co.uk/Trends-
Reports/Pubs-see-sales-turnaroundduring-
London-2012-Olympics



Job applications
Job applications made per quarter
933,200
857,254 836,812
810,106 796,500
729,818 714,970
685,672
592,115 595,226 575,979
557,639
516,652 513,904

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2011 2012

OVERVIEW

This quarter the number of applications reached 796,500.

796,500
This represents a two percent fall compared to the same quarter last year, no
doubt the result of the eight percent slowdown in recruitment figures.

Job applications in Q2 2012 Overall, however, applications in Q2 in 2012 are up by more than a third (34

34%
percent) on Q2 2011 and over one half (54 percent) on 2010.


54% Compared to Q2 of 2010



Job competition
Competition for job rates per quarter
23.3
21.3
19.7 19.0
17.7 17.4 18.0
16.0 15.9 16.1 15.8
14.9 15.1 14.7

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009 2010 2011 2012

OVERVIEW

With job advertisements falling by eight percent but applications
only falling by two percent, the level of competition for applicants
across hospitality has remained high. This quarter the level stood
at 19 applications for every job posted.

19
For Q2 this is the highest level so far, up from 16 in 2009, 15 in 2010, and 18
in 2011.

Applications per job
In line with previous Hospitality Employment Index reports, competition levels

2%
are inextricably linked to unemployment figures. The latest data available
indicates that there were 2.58 million unemployed people across the UK in
the three months to May 2012. This equates to just over eight percent of the
economically active population and is an increase of 0.4 percent on the same
quarter last year.6

Competition levels are also stronger than those of comparable sectors.
In retail, a sector that has much in common with hospitality, competition
currently stands at 15 applications for each job. These figures also prove that
more jobseekers are looking towards hospitality as an area for employment as
opposed to other comparable sectors.

Furthermore, the sector appears to be particularly popular with young people.
A recent survey indicated that over half (57 percent) of 16-24 year olds would
consider a career in hospitality.7

REFERENCES
6
http://www.ons.gov.uk/ons/
dcp171778_269309.pdf
7
http://www.bighospitality.co.uk/Trends-
Reports/Industry-bodies-hit-back-at-
research-into-young-people-working-in-
hospitality



Job competition

Why jobseekers want to work in hospitality/catering

For the career prospects 40%
Because it’s exciting 38%
For the social interaction 29%
For the money 24%
For the culture 21%
For the flexible hours 17%
For the close proximity to where I live 11%
Because I want to work for a specific brand 8%

As can be seen from the graph above, according to a user-profile survey
carried out by Caterer.com, career prospects and excitement about the
industry were given as the main reasons people want to work in catering and
hospitality.8

WHY JOBSEEKERS WANT TO WORK IN HOSPITALITY/CATERING

In summary, many people are attracted to hospitality both because of the
excitement roles in the sector can offer and the career prospects available.

As young people feature heavily within this group, effort should therefore
be made to retain and attract young talent within the sector. Websites such
as uksp.co.uk can help with this as they offer a comprehensive guide to the
sector, signposting users to the paths they can take to progress further within
the sector.

“The trick, of course, is to provide those who do
make a start in our sector with such a positive
experience that they will never want to leave.”
Philippe Rossiter, Chief Executive, Institute of Hospitality

REFERENCES
8
Caterer.com, User Profile Survey 2012



Focus on restaurants

Summation of selected restaurant roles

Q2 2012
331,294 / -5%
25,103 / -8%
13.2 / 4%
Q2 2011
347,103 / 30%
27,347 / 14%
12.7 / 14%
Q2 2010
266,925 / 15%
23,884 / 25%
11.2 / -7%
Q2 2009
231,202
19.161
12.1

Number of job applications Number of jobs advertised Competitiveness Change from previous Q2

OVERVIEW

Restaurants form a major component of the hospitality sector.
Over the last quarter, the restaurant industry has exhibited similar
trends to the ones seen across hospitality as a whole.

25,103
Restaurant-related posts in Q2 2012
The number of advertisements across a selection of restaurant-based roles fell
eight percent in Q2 2012 when compared to the same quarter in 2011.

Applications fell five percent from 347,100 to 331,300 in the same period,

8%
Adverts compared to Q2 2011
meaning competition levels have increased only slightly from 12.7 in 2011 to
13.2 in 2012.

5%
Applications compared to Q2 2011



Summation of managerial roles

Restaurant management
90,200 / -1%
7,126 / -8%
Catering management
14,438 / -43%
920 / -45%
Food and beverage management
18,502 / -2%
904 / -1%
Kitchen manager
2,691 / -15%
537 / -8%
Number of job applications Number of jobs advertised Change from Q2 2011 - Q2 2012

MANAGERIAL ROLES

125,830
The number of advertisements posted for managerial roles in the restaurant
industry has fallen in each area. Catering management advertisements in
particular saw a fall of 45 percent from the same quarter of the previous year.
Total number of managerial applications

13 Applications per job
In line with this fall in job advertisements, the proportion of applications has
also fallen in each area. Throughout the recession many businesses have
found staff retention improving considerably. For some, this has made it less
necessary to continue recruiting in management.

“Obviously this is good for business as we would not
have to train further people, but invest our time in
delivering the tools that they need to succeed in their
roles.”
Marcus Weedon, Senior Recruitment Manager, Carluccio’s Limited




Summation of non-managerial roles

Waiting staff
82,145 / -1%
1,362 / -4%
Catering staff
30,749 / 4%
767 / -9%
Sommelier
1,390 / -34%
118 / -49%


NON-MANAGERIAL ROLES

114,284
Job advertisements have also fallen in non-managerial roles, illustrating some
business’ reluctance to expand staffing levels in such positions given the
economic climate. Competition levels for waiting staff are extremely high.
Total number of
non-managerial applications

50
The number of advertisements for sommeliers has dropped by almost half
(49 percent). This could be related to the economic climate, which has seen
many people move away from the fine dining experience to more casual (and
Applications per job cheaper) alternatives.




Summation of chef roles

Chef de partie
25,657 / 7%
4,965 / 0%
Sous chef
22,043 / 7%
3,827 / 2%
Head chef
25,251 / -3%
2,736 / -8%
Chefs
18,229 / -22%
1,841 / -18%

CHEF ROLES

91,180
The picture for chefs is more varied than other restaurant-based roles. Chef
de partie advertisements have remained the same; sous chefs have increased
slightly, while advertisements for chefs and head chefs have fallen.
Total number of chef applications

7 Applications per job
Unusually, the number of applications for chefs has fallen more than the
number of advertisements, which is why we are seeing a decrease in
competition levels in this area. Skills shortages amongst chefs is one of the
most acutely felt problems across the restaurant industry, so it is hoped that
this is not the beginning of a further decline in the supply of skilled chefs
across the country.



Trends in the restaurant industry
While it is undoubtedly true that many people have
been cutting back on their expenses, the fact remains
that people continue to spend money.
SUMMARY

Now more than ever, consumers are being attracted to places that are tuned
into their lifestyle in terms of ambience and, of course, budget. This means
that competition for customers across restaurants has become increasingly
fierce.

Spurred on by attractive offers from the industry, recent research has indicated
that the average UK consumer is going out for food and drink on 19.8
separate occasions each month. This is actually 2.3 more times per month than
the same time last year and bodes well for the restaurant industry as a whole.9

There is, however, considerable variation across consumer groups, with 18-34
year olds leading the way in this market. Generation Y (18-34 year olds) goes
out twice as often as Generation X (35-54 year olds), and three times as often
as Baby Boomers (aged 55 and over).

The research suggests that, overall, Generation Y appears to be more carefree
than their older counterparts. Furthermore, their tastes and preferences are
likely to become increasingly influential in future as their spending power
increases. Generation Z will also become more important to the market,
following Generation Y’s lead.

To keep pace with their competitors and to continue to attract customers, the
industry should pay attention to such trends and make preparations to meet
these expectations in the coming years.

Industry commentators have noted a number of additional trends for the
coming year, many of which reflect the increasing influence of Generation
Y.10 Most notably, three key trends for 2013 are a move towards increasing
informality, a greater emphasis on speed of service and putting the customer
in control, and the rising influence of mobile technology, including apps.

REFERENCES
9
Deloitte, 2012, ‘Taste of the nation: One
year on … a social lifestyle’
10
http://lostincatering.com/lostincatering/
restaurant_trends_2013.html



Far from the tradition of fine dining, many people
now prefer a less formal dining experience.
INCREASED INFORMALITY

This consists of a much more relaxed atmosphere, possibly influenced by the
rise of the gastropub where dining out is less of an occasion than a traditional
restaurant, but the food is of a high standard.

This surge towards informal dining can be linked to the long tables introduced
in Wagamama restaurants 20 years ago. There is a much more social aspect
to such restaurants, with the design promoting greater interaction between
patrons and a very informal atmosphere. Along with this trend, fixed dining
hours are becoming less recognised by consumers, with later dining far more
commonplace.

In terms of recruitment, some businesses are also taking a less formal
approach and applicants seem to be embracing this; one recent survey
indicated that two thirds of candidates welcome obscure lines of questioning
as part of their job interview, and 66 percent felt positive about their ability to
respond to a weird question (such as ‘how would you get an elephant into a
fridge?’).11

Fast food has long been a part of the UK dining out
market, but its ubiquity is now apparent.
PUTTING THE CUSTOMER IN CONTROL

Almost every high street in the country is home to at least one well-known
quick service brand; for example, McDonalds alone has around 1,200
restaurants across the UK.

REFERENCES Generation Y is familiar with fast food chains, so it will come as little surprise
11
www.hrmagazine.co.uk/hro/news/1074368/ that they expect comparably quick levels of service in other casual dining
how-elephant-fridge-recruiter-advises- establishments. Having said that, while operators should be prepared to offer
employers-weird-interview-questions-win- a speedy service, they must also be aware that guest preferences are more
war-talent
12
Peach Report, ‘How smartphones
diverse than ever before, and consumers will expect to be able to take as
are replacing the walk-in diner’, www. much time as they like over their dining experience.
peach-report.com/Trends/1440949/how_
smartphones_are_replacing_the_walkin_
Similarly, consumers are using technology more to make reservations at short
diner.html
notice. The Peach Report states that one well-known restaurant chain gets 50
percent of its online bookings for later the same day.12



Restaurants must ensure they are properly accommodating the diverse
nature of today’s diner. However, this trend should also continue into
recruitment processes to appeal to people that would thrive working in such
environments. In short, sourcing candidates should be cost efficient, simple
and effective in fulfilling the restaurant’s business needs.

One of the defining characteristics of
Generation Y is their use of technology, with
online bookings arguably the most obvious
manifestation.
THE INFLUENCE OF APPS

According to the European Dining Index from Livebookings, online restaurant
booking in the UK more than doubled in the first quarter of 2012 compared to
2011. Furthermore, bookings made via mobile phones had trebled.

The report also pointed out that nearly a third of restaurants in the UK do
not have a website, and the authors estimate that this could result in an
approximately £31,000 revenue loss each year.13

Of course, online bookings are only part of the story. Through mobile phone
apps, users can look at menus, check deals or offers at nearby restaurants,
read recommendations, and express their loyalty to a brand by ‘checking-in’
at a particular location. Clearly this offers huge opportunities for businesses to
build their brand awareness and attract new customers.

Such trends are set to grow and develop further in coming years, affecting the
recruitment process itself; there are already a wealth of apps available that
make it easier for jobseekers to search and apply for roles. At the same time,
the increase in mobile-enabled sites means recruiters can post jobs on the go.

Caterer.com’s recent user profile survey showed that 46 percent of
respondents have used their mobile phones to apply for jobs and 60 percent
REFERENCES
have used a tablet. Moreover, 82 percent of respondents said they will make
13
http://www.livebookings.co.uk/News/
more use of their mobile phone or tablet in the future to search for jobs. This
Hidden_restaurants_A_third_still_have_
no_website_according_to_Livebookings_ is a growing area and one that businesses should ensure they prepare for
European_Dining_Index appropriately.



Age distribution of workforce (restaurants compared to whole economy) Whole economy Restaurants

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60 and over

0% 5% 10% 15% 20%

THE UNIQUE ADVANTAGE OF RESTAURANTS

As Generation Y are socially driving the dining out experience, it appears the
restaurant industry is perfectly positioned to capitalise on these trends.

The industry has an advantage as its workforce is largely made up of young
people. As evidenced in the graph above, more than half (53 percent) of
the industry’s workforce is under 30, compared with less than a quarter (23
percent) across the economy as a whole.14

Looking at the key job roles within restaurants, more than three quarters of
waiting staff are under the age of 30.

Core occupations within restaurants (proportion of workforce aged under 30)

Cooks 16%
Managers and owners 23%
Chefs 37%
Kitchen and catering assistants 46%
Waiting staff 77%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

REFERENCES In appealing to the emerging and developing consumer markets of
14
Generation Y and Generation Z, restaurants therefore have a workforce that
People 1st analysis of the Labour Force
Survey 2011, Office for National Statistics
can fully relate to their clientele.

For this reason, and as prescribed by so many business development
programmes, it is in the interest of restaurateurs to seek their staff’s
involvement in the business, using their insight into the customer base to
finely tune the service they offer.



This quarter’s Hospitality Employment Index suggests
that recruitment levels have slowed down recently,
but that the sector remains in good shape relative to
comparable industries.
SUMMARY

The restaurant industry in particular has seen a multitude of changes in recent
times but, despite this, many operators are continuing to thrive. Much of this
is down to addressing the changing needs and demands of their clientele and,
with recent research indicating Generation Y are the largest market for eating
out, operators need to adapt to what appeals to them in order to maintain
ongoing success.

In this quarter’s report we have highlighted a number of key trends that
characterise Generation Y’s expectations. For example, restaurateurs would do
well to consider Generation Y’s preference for less formal dining experiences,
and the ubiquity of social media and e-communications among them to attract
more custom and aid their recruitment procedures.

A young workforce already exists within the restaurant industry, so operators
have a key demographic within their workforce to help capitalise on emerging
trends.



About us

CATERER.COM
IS THE UK’S LEADING HOSPITALITY RECRUITMENT WEBSITE

Since its launch in 2001, Caterer.com has pioneered online recruitment for
the hospitality industry. Working with hotels, restaurants, pubs, bars and food
service companies across the UK, it has developed a strong reputation as a
leader in its field, helping both small and large businesses to improve their
recruitment and retention processes.

If you are interested in finding out more about how Caterer.com can help you
and your business, please either email sales@caterer.com, or call 0845 877
0064 to speak to one of their experts.

To register to receive Hospitality Employment Index updates, visit
www.caterer.com/HEI

PEOPLE 1ST (WWW.PEOPLE1ST.CO.UK)
IS THE SECTOR SKILLS COUNCIL FOR HOSPITALITY, PASSENGER
TRANSPORT, TRAVELAND TOURISM

People 1st is a government recognised, industry-focused body established
to support the development of skills and training within the sector. It works to
transform skills in the sector and is committed to ensuring that public funds
support the industry to develop only those qualifications and programmes that
meet the needs of employers.

People 1st regularly conducts surveys for other organisations such as trade
associations and public sector agencies. If you would like to use its expertise
or commission it to conduct surveys on your behalf please contact Alastair
Galbraith at People 1st (Alastair.Galbraith@people1st.co.uk or 01895 817 018)
to discuss your requirements.

To download the latest Hospitality Employment Index, visit
www.people1st.co.uk/HEI

Technical notes
Caterer.com data is based on job ads displayed on the website. Ads are
made by recruiters placing an advertisement within one of 36 job categories
and 12 UK regions.


Caterer Hei Report Q2 2012

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