Staff shortages in the foodservice industry – how to find employees!

Minimum wage or less. Unpaid overtime. No holiday pay and no Christmas bonus. The foodservice industry has a reputation for being a “low-income industry”. More often than in other sectors, gross earnings are below the low-income threshold. Only a small proportion of jobs are covered by collective agreements and are paid at least the minimum wage. It’s no wonder that many employees in the foodservice sector in Germany migrate to the tourist centres of Switzerland or Austria. The earnings there are often twice as high. But changes are taking place. The new collective agreements provide for significant increases in all wage groups as well as for apprentices and also take into account the increase in the statutory minimum wage.

Employment relationships in which verbal agreements are made and wages are paid in cash. Pseudo self-employment and fixed-term employment contracts. Or a part-time job with few hours, where countless hours are added as overtime and then paid cash in hand. Some would say, “Typical restaurateur!” Many job seekers say, “No, thank you!”

Besides, from a purely legal point of view, verbal employment contracts are just as effective as written ones – if the most important regulations have been agreed upon and provided they are not fixed-term employment contracts. However, to avoid ambiguities and misunderstandings, it is advisable to request a written contract.

In any case, the employer is obliged to hand over to the employee no later than one month after the start of the employment relationship a written document setting out the main provisions of the employment. However, this is not a formal employment contract.

In Asia, tipping is often frowned upon or taken as an insult. For German waiting staff, it is an important part of their monthly income. This is because an acceptable income is often only achieved when the recommended 5 to 10 percent tip is added to the regular wage. The problem is that as people are paying increasingly by card, there is less opportunity to leave a tip.

Clearly, tipping is a matter between guests and employees. They are independent of wages and may neither be withheld by the employer nor deducted from wages. Staff do not have to be taxed on tips that come voluntarily from guests and are not part of the employment contract.

Working hours in the foodservice industry are “special” and not particularly attractive to many. Working hours often include times when others are enjoying their evenings, are out with friends or on holiday. Regularly working late at night, at weekends and during public holidays – often on call – makes it difficult to strike a good work-life balance and puts many job seekers off.

Compared to other industries, the working environment in the foodservice industry can be rather challenging. Noise and a hectic pace in the guest area. Harsh and informal language in the kitchen. Heat from the cooker and warewasher. Pressure and stress because staff shortages have to be compensated for by overtime. And of course, you’re on your feet all day. It’s no wonder that slipped discs and tendinitis are among the typical occupational hazards in the foodservice industry. In the worst case, boundaries are also crossed – for example, when guests sexually harass staff because they are under the influence of alcohol and their inhibitions are reduced.

Since the coronavirus pandemic, the foodservice industry has suffered the stigma of being a precarious sector in crisis. Businesses have fallen on hard times, both economically and in terms of personnel. A lack of planning, an unclear future and a lack of reliable prospects, together with short-hours work and loss of income, have led to a sharp decline in the number of employees and trainees. Now the industry is facing a structural problem for the future. All this, of course, doesn’t make working in the foodservice industry palatable to job seekers.

As in some other sectors, a large proportion of employees in the foodservice industry in Germany traditionally work as mini jobbers. This is important because it gives companies the flexibility they require and, as an attractive employment model, prevents a migration into undeclared work. However, we know from past experience that marginal employment also has its disadvantages in times of crisis. as such workers are not subject to compulsory insurance under the unemployment insurance scheme, restaurateurs cannot apply for short-time allowance in order to keep them in permanent employment. Some job seekers therefore prefer another form of employment (e.g. a “midi-job” or part-time employment).

There’s one thing that foodservice industry employees can all agree on – they feel underappreciated. Employers, guests and society don’t show enough appreciation and respect for their work – and they aren’t taken seriously. This is all the more problematic because working in the foodservice industry is quite challenging and relies on the passion, commitment and positive attitude of individuals. Many perceive this as an imbalance and switch to a professional field where they feel they receive more recognition.

Low wages, unpaid overtime, unsociable working hours. In addition, poor quality of training and a high drop-out rate among trainees. Plus various other factors. All of this adds up and means that the “foodservice” sector generally has a fairly bad reputation among employees.