The restaurant worker shortage in the US continues to impact the restaurant industry, so let’s take a look at how the EB-3 Visa provides a much-needed solution.
Restaurant Worker Shortages are killing businesses
US employers are facing historic worker shortages today, in particular the restaurant industry, where turnover rates are fast becoming a death blow. Half of the operators in the full service, quick service, and fast-casual segments expect recruiting and retaining employees to be their top challenge this year, and with 3 out of 4 employees planning to leave their job within the year, the restaurant worker shortage shows no sign of slowing down.
According to the State of the Restaurant Industry 2022 Report, 78 percent of restaurant operators do not have enough employees to support customer demand, with the restaurant and accommodation sectors having more than 1 million unfilled jobs.
Turnover is costly
According to a survey conducted by the National Business Research Institute, the restaurant industry has an average turnover rate of 35%. The QSR industry alone faces particularly dire circumstances with a turnover rate of 144%. Restaurant businesses across the US spend countless amounts of time, energy, focus, and money trying to maintain employment across their businesses. All this wasted effort leads to decreased productivity, lowers team morale, and increases costs worst of all. The Center for Hospitality Research at Cornell estimates that the cost of employee turnover averages around $5,864 per person for a typical entry-level position and can be broken down as follows:
In the coming decade, the restaurant industry in the United States is expected to grow exponentially, but this significant restaurant worker shortage and turnover rates threaten long-term success. American workers are reluctant to maintain these jobs and the current workforce is quickly approaching retirement age.
A solution to the restaurant worker shortage crisis is one that has actually existed for decades: The EB-3 Visa Program. This undervalued employment-based visa program specifically addresses these challenging labor shortages facing US employers across the country by matching them with motivated foreign nationals seeking to obtain US permanent residency.
Foreign Workers are Essential to the Restaurant Industry
Among the major occupations in the restaurants and food service industry, immigrants make up almost one in three chefs and cooks, one in five food service managers and food preparation workers, and one in nine fast food and counter workers.
The restaurant industry is expected to add 1.8 million job openings, equaling a 14% increase in the total overall American workforce. However, American workers in the industry are only predicted to increase 10% in the same time period, therefore the restaurant worker shortage can only be helped by foreign workers. This is where the EB-3 Visa Program can add significant value.
How Can the EB-3 Visa Help Save the Restaurant Industry?
The US government created the EB-3 Visa program to help struggling US employers across several industries facing severe labor shortages for entry-level jobs, allowing them to sponsor foreign nationals and fill job openings in exchange for US green cards and permanent US residency. The EB-3 Visa virtually eliminates rapid turnover and allows US employers to build culturally diverse and dependable workforces, that are motivated and incentivized to perform the duties of their positions.
The EB-3 visa provides a valuable long-term staffing solution to the restaurant worker shortage, that is both scalable and cost-effective across multiple business units and locations. Now more than ever, US employers and hiring experts in the restaurant industry should turn to the EB-3 Visa for help. Visit our Employer Sponsor page to sign up and speak with a Dynaxe Capital representative today!