PUTTING GEN Z TO WORK IN RESTAURANTS ROB GIFFORD Executive Vice President National Restaurant Association Educational Foundation
TOPICS • Who is Gen Z? • Industry Data • What Gen Z Thinks About Restaurants & Foodservice • What You Can Do To Hire Gen Z
01 WHO IS GEN Z?
WHO IS GEN Z? Born roughly beginning in 1997 up until a few years ago Totals 67M 17M entering the workforce Most racially diverse generation Source: Adamy, J., Paige, T., Zhang J. Gen Z Is Coming To Your Office. Get Ready to Adapt. [News Article]. Retrieved from WSJ.com: https://www.wsj.com/graphics/genz-is-coming-to- your-office/
THE MYTHS ABOUT GEN Z Uncertain about the future Tech Dependent Want to “do things” not buy things Source: Guide to GenZ: Debunking the Myths of Our Youngest Generation. [PDF Document]. Retrieved from NPD.com: https://www.npd.com/wps/portal/npd/us/news/tips-trends- takeaways/guide-to-gen-z-debunking-the-myths-of-our-youngest-generation/
THE REALITY ABOUT GEN Z Pragmatic Prefer face-to-face discussions Money-oriented – crave financial security Source: Guide to GenZ: Debunking the Myths of Our Youngest Generation. [PDF Document]. Retrieved from NPD.com: https://www.npd.com/wps/portal/npd/us/news/tips-trends- takeaways/guide-to-gen-z-debunking-the-myths-of-our-youngest-generation/
WHAT GEN Z WANTS IN A JOB POSITIVE WORKPLACE CULTURE FINANCIAL REWARDS DIVERSE MANAGEMENT FLEXIBILITY Source: Deloitte Millennial Survey. [Article and Report] Retrieved from Deloitte.com: https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html
HOW DOES GEN Z CONSUME TV INFORMATION? Magazine Outdoor INTERNET Newspaper Internet RADIO Radio Source: Grey Advertising
AND WHERE? Spotify Source: Grey Advertising
PROFESSIONAL FULFILLMENT JOURNEY Experimentation Appropriation Exploration Actively seeking ways to satiate Looking to find their authentic Want fun ways to learn by doing their creativity, excitement, and self/voice enrichment Looking to achieve success Willing to try new things and not Want to get involved but self doubt afraid to fail if it means something of Gain the respect of their peers and lack of confidence/focus holds value/betters their lives them back Influence others and help them live fulfilling lives FOMO – Want to be in the know Source: Grey Advertising
02 INDUSTRY DATA
40% OF CURRENT RESTAURANT WORKERS ARE 16 TO 24 YEARS OLD 55+ yrs 16 - 24 yrs 45 - 54 yrs 35 - 44 yrs 25 - 34 yrs Sources: National Restaurant Association, Bureau of Labor Statistics
THIS IS A DEMOGRAPHIC THAT IS IN HIGH DEMAND FOR MANY INDUSTRIES
TOP INDUSTRIES OF EMPLOYMENT FOR YOUNG ADULTS 2000 2017 6% EDUCATION 7% 7% 10% MANUFACTURING 8% BUSINESS SERVICES 9% 11% HEALTHCARE 8% RESTAURANTS 19% 15% RETAIL 20% 20% Source: Bureau of Labor Statistics
WE HAVE A HUGE DEMOGRAPHIC CHALLENGE COMING UP
UNFILLED JOB OPENINGS IN RESTAURANTS ARE AT A RECORD HIGH MONTHLY JOB OPENINGS IN THE RESTAURANTS-AND-ACCOMMODATIONS SECTOR* 800K UNFILLED JOBS 500 00 Source: Bureau of Labor Statistics *Job openings represent vacancies on the last business day of the month. Restaurant job openings represent approximately 90% of this total.
YOUNG ADULT LABOR FORCE IS PROJECTED TO DECLINE IN THE NEXT DECADE +1.6M Restaurant Jobs -1.3M 16-to-24-Year Old Labor Force Sources: National Restaurant Association, Bureau of Labor Statistics
PROJECTION: THE RESTAURANT INDUSTRY WILL LOSE 250,000 16-TO-24-YEAR-OLD EMPLOYEES OVER THE NEXT TEN YEARS NUMBER OF 16-TO-24-YEAR-OLDS EMPLOYED IN THE RESTAURANT INDUSTRY: HISTORICAL AND PROJECTED LEVELS 3.68M 3.45M Sources: National Restaurant Association, Bureau of Labor Statistics
INDUSTRY NEEDS 640,000 MORE 16-TO-24-YEAR-OLDS THAN PROJECTED RESTAURANT INDUSTRY EMPLOYMENT: HISTORICAL AND PROJECTED LEVELS Restaurant Jobs Labor Force
03 WHAT GEN Z THINKS ABOUT WORKING IN OUR INDUSTRY
WE CONDUCTED ORIGINAL RESEARCH ON GEN Z In collaboration with the Center for Generational Kinetics Administered to a total of 1,606 U.S. respondents Currently employed, previously employed, or looking for a job in our industry
HERE’S WHAT WE FOUND
82% OF GEN Z SAY A RESTAURANT WAS THEIR FIRST PAID JOB
GEN Z IS STARTING IN OUR INDUSTRY EARLIER THAN MILLENNIALS 18.6 16.5 Gen Z Millennials
TOP 2 PERCEPTIONS ABOUT THE RESTAURANT INDUSTRY Good place to get a first job Requires a wide variety of skills
BOTTOM 2 PERCEPTIONS ABOUT THE RESTAURANT INDUSTRY For people who don’t have the skills to work anywhere else Requires little or no training
HOW SATISFIED ARE THEY? 64% of Gen Z were satisfied with their work experience in restaurants or foodservice during the last 12 months 20% were not satisfied
MOST VALUABLE ATTRIBUTES LEARNED WORKING IN THE INDUSTRY Multitasking Teamwork Customer Care
BIGGEST CHALLENGES WORKING IN THE INDUSTRY Stress of the environment Dealing with customers Compensation
MOST LIKELY METHODS OF SEARCHING FOR RESTAURANT JOBS #5 Visiting restaurants and #1 Ask restaurant workers you know inquiring #2 Ask friends and family #6 Job vacancy notice in window #3 Job search sites #7 Job fairs #4 Restaurant websites #8 Social media
MOST INFLUENTIAL FACTORS FOR APPLYING TO A RESTAURANT #1 General reputation of restaurant as a place to work #2 Positive recommendation from a friend or family member #3 Paid on the job training #4 Positive experience eating at the restaurant #5 #5 Employee review website (i.e. Glassdoor Review)
MOST IMPORTANT QUALITIES FOR SUCCESS IN RESTAURANT JOBS #1 Hard-working #2 Dependable #3 Flexible #4 Team Player #5 Service Oriented
TOP CULTURAL TRAITS SELECTED FOR THEIR IDEAL JOB #1 Recognition #2 Flexibility #3 Team atmosphere #4 Employees have a voice Gen Z would like feedback from their manager weekly to every few weeks in order to know they’re doing a good job
TOP FACTORS that would convince Gen Z to stay in a job after 6 months Compensation Having a good manager Shift flexibility
WHAT GEN Z LIKES IN THEIR WORK ENVIRONMENT Being creative and trying new things A job that keeps them active Getting to work with a wide variety of people
WHY THEY LEAVE THE INDUSTRY “Found something better” Not making enough money
WHERE GEN Z ASPIRES TO WORK Where they are Where they want to be QSR Fine Dining Casual Casual Fine Dining Bakeries
WHERE GEN Z ASPIRES TO BE Where they are Where they want to be Cashier/Crew Waiter/Waitress Waiter/Waitress Owner Host Bartender Cook Manager
OVER HALF OF GEN Z EXPECT TO ADVANCE THEIR RESTAURANT CAREERS BY Making more money within the first 3 months Being promoted within 1 year
47% of Gen Z has never had a mentor LESS LIKELY TO HAVE A MENTOR Part-Time Employees Women
59% of those with mentors were in more senior positions compared to 30% of those who do not report having a mentor 82% of Millennials in management have had a mentor ONE INTERPRETATION: THE BENEFIT IN HAVING A MENTOR INCREASES OVER TIME
HOW GEN Z BENEFITS FROM MENTORSHIP Develop skills Build confidence Help avoid mistakes
04 HOW YOU CAN HIRE AND RETAIN GEN Z
REMEMBER HOW THEY FIND YOU Keep applying easy Your current workers are your best ads & recruiters Keep up your reputation across all channels Be ‘old school’ & personal
CREATE WORK ENVIRONMENTS WITH KEY ATTRIBUTES Make people want to stay and address the reasons they leave Have great managers Provide training and career pathways Maintain flexibility Ensure an environment of teamwork Have competitive salaries
HAVE A CULTURE OF MENTORSHIP Understand what mentors do Identify staff who are great mentors Identify mentors for each new employee Work within your community to engage and mentor youth through the industry
THE FOUNDATION IS WORKING TO ATTRACT THIS IMPORTANT SEGMENT OF THE WORKFORCE
AND OUR PROGRAMS GIVE GEN Z A PLACE TO START
RESTAURANT READY Empowering underserved individuals to pursue a path to employment and lifelong success
PROSTART Building our future leaders
APPRENTICESHIP Advancing current restaurant employees towards careers in management
SCHOLARSHIPS AND GRANTS Empowering and stewarding the future leaders of the restaurant industry
QUESTIONS
JOIN IN ON THE CONVERSATION Download the full report at ChooseRestaurants.org/GenZ #GENZWORKS ROB GIFFORD Executive Vice President National Restaurant Association Educational Foundation ChooseRestaurants.org
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