ROC-United Releases Four Local Industry Reports and a National Executive Summary

February 8th, 2010

On February 9th, 2010, in conjunction with four local ROC affiliates, ROC-United released comprehensive industry studies for Chicago, Metro Detroit, New Orleans, and Maine, and a national executive summary which pooled data from these locations and from New York City. This is the first time such a comprehensive industry study has ever been released in any of these locations. Click here for each of the local reports and their executive summaries, and for the national executive summary.

The new series of reports shows that the U.S. restaurant industry is resilient despite the bad economy and continues to offer job opportunities as the nation’s largest private sector employer. At the same time, the reports explore the pervasiveness of “low road” restaurant jobs – characterized by low wages, hazardous working conditions, long hours and few benefits – that result in a drag on economic growth and threats to public health. An executive summary – based on studies in Chicago, Detroit, New Orleans, New York and Maine – recommends increasing the federal tipped minimum wage and providing paid sick days to improve working conditions and make the restaurant industry an even stronger driver for the U.S. economy.

The following are key findings from the series of reports, Behind the Kitchen Door: 

·         Nationwide, and in each of the five regions studied, the restaurant industry is vibrant, resilient, and growing, despite the recession.

 ·         With nearly 13 million workers nationwide, the restaurant industry is America’s largest private sector employer.

·         Many restaurant employers in each of the five regions examined appear to be taking the low road, creating a predominantly low-wage industry in every region and around the country in which violations of employment and health and safety laws are commonplace

.·         More than 90% of restaurant workers surveyed reported that they do not have health insurance through their employers.

·         In all five regions studied, it is largely workers of color who are concentrated in the industry’s “bad jobs,” while white workers tend to disproportionately hold the few “good jobs.”

·         There are some living wage jobs in the restaurant industry. In each region, between 10 and 20% of workers surveyed reported earning living wages.

“Taking the high road with our employees pays off for our business, in higher loyalty, lower turnover and better customer service,” said Phil Cooley, owner of Slow's BBQ, Detroit. “With continuing growth in our industry, even during a bad economy, every restaurant can and should invest in our workers.”

 Restaurants throughout the country have been faced the choice between the high and low roads to profitability for years. Many have struggled to train and retain a work force while paying only federal restaurant minimum wage, a meager $2.13 per hour before tips. With tips, the national median wage at restaurants is only $8.59 per hour or $12,868 per year.

The release of these comprehensive reports has been covered by a number of national media outlets, including the Washington Post, Labor Notes and In These Times.