Job Gains Mask Underlying Turnover Pressures (Image Credits: Unsplash)
United States – Food and beverage leaders navigated a stabilizing job market in early 2025, yet persistent employee churn highlighted deeper issues around workplace engagement and satisfaction.[1]
Job Gains Mask Underlying Turnover Pressures
The U.S. economy added 181,000 jobs in January 2025, pushing unemployment down to 4.3 percent, according to Bureau of Labor Statistics data.[1] This marked an improvement over prior months, though it paled against the 1.46 million positions created throughout 2024. Food manufacturing showed resilience, with employment rising 11.5 percent year-over-year. Foodservice and retail sectors also posted gains compared to the previous year.
Operators welcomed these trends. Still, the data obscured a constant churn that disrupted operations and planning. Businesses reported ongoing difficulties retaining staff despite broader market recovery.
From Shortage to Engagement: A Paradigm Shift
Riley Westbrook, co-founder of Valor Coffee, reframed the challenge as an engagement crisis rather than a traditional labor shortage. Leaders could address it through straightforward strategies that boosted productivity and improved quality of life, he argued. Employees increasingly prioritized supportive environments over higher pay alone.[1]
“Most people are not avoiding work; they are avoiding environments that treat their employees as nothing more than a line item on a spreadsheet,” Westbrook said. Luke Fryer, CEO of Harri, echoed this view. He noted that rising wages, stricter regulations, and turnover exposed vulnerabilities in outdated models reliant on manual processes.[1]
Workers Demand Purpose Amid Stability
A Monster report captured shifting attitudes: only 43 percent of employees planned to seek new jobs that year, a sharp drop from 93 percent the prior year. Meanwhile, 75 percent intended to remain in their roles through 2027.[1] Lower-wage staff in consumer packaged goods, retail, and foodservice sought greater meaning and advancement.
Businesses stood at an inflection point. Fryer, with experience at chains like Wagamama and Burger King, saw potential to invest in teams. Providing growth paths could foster loyalty and positivity.
AI Emerges as Key Ally Against Churn
Innovations in artificial intelligence promised relief from repetitive burdens. Tools could handle scheduling, compliance checks, demand forecasting, and routine tasks, easing labor volatility. Managers often spent over 10 hours weekly on scheduling alone, per a Legion report.[1]
TD Bank research highlighted AI’s role in this area, positioning it to streamline restaurant operations.[1] Eliminating menial work addressed a top quit factor. Here are primary benefits:
- Automated scheduling to save managerial time.
- Forecasting tools for better staffing alignment.
- Compliance aids to reduce errors and training needs.
- Assisted processes that free staff for meaningful duties.
Key Takeaways
- Engagement trumps availability in retaining F&B talent.
- AI targets pain points like scheduling to curb churn.
- Stability offers a window for investing in employee growth.
Food and beverage operators who embraced these shifts positioned themselves for a more resilient workforce. Simple focus on human-centered strategies and smart tech could turn churn into loyalty. What steps is your team taking to boost engagement? Share in the comments.
