2020 Hospitality & Food Service Fair Workweek Readiness Report
45%
of operators experienced labor costs rise from 3-9%
60%
experiencing 9-15% increases.
65%
experiencing >15%.
Managing Good Faith Documentation
43%
39%
13%
2%
By 0-5%
By 5-10%
By 10-15%
By 15-20%
By > 20%
51%
Excess Time Spent Building Compliant Schedules
Accounting for Premiums when Running Payroll
Retained Legal Counsel
40%
25%
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of respondents currently have a technological response to ease or automate the operational burden of managing compliance.
17%
of respondents have been subject to a scheduling practice investigation.
Of those subject to an investigation,
of those businesses have been required to pay fines or restitutions as a result of those investigations.
35%
100%
48%
of those surveyed are not in support of scheduling legislation.
The Indirect Costs Businesses Experience to Remain Compliant
Hospitality Organizations are Experiencing the Following in Response to Scheduling Legislation
Hover to see precentage breakdowns
Surveyed operators representing roughly
restaurants and
+5,300
employees across the US.
+45,000
Challenges Experienced In Litigious Scheduling Environments
+
71%
raised menu prices (by how much indented)
42%
10%
3%
5%
By < 10%
By 20-25%
By > 25%
64%
reduced employees hours (by how much indented)
72%
18%
By 15%-20%
eliminated job (by how much indented)
4%
+ Methodology
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Full Service
Limited Service
Quick Service
Fast Casual
49%
54%
29%
Most Challenging Compliance Requirements
Advanced Schedule Publishing
Tracking Real-Time Schedule Changes
Avoiding Scheduling Penalties
37%
41%
12%
Made No Changes
Reduced Employee Hours
Eliminated Jobs
Crossed Training Employees
Changes to Labor Operations
Available Shift(s) Process
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30%
20%
0%
50%
<10%
10-15%
15-20%
20-25%
>25%
70%
of operators do not have technological response to manage compliance
of operators feel at risk to comply
of operators reduced employee hours
0-5%
5-10%
>20%
Menu Price Inflation Range
Employee Hours Eliminated Range
Eliminated Jobs Range
Full Service Limited Service Quick Service Fast Casual Fine Dining Casual Dining
Fine Dining
Casual Dining
Hospitality Industry
Reporting and Tracking Premiums
2019 Hospitality & Food Service Wage Inflation Report
Raised Menu Prices
27%
Eliminated Ancillary Positions
Deployed New Technology
Activated a Commissary
28%
7%
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of operators granted a wage increase to non-minimum wage employees to maintain the delta between minimum wage-earning employees and the rest of their workforce.
of non-minimum wage employees received a wage increase of 5-15%.
As a result of changes in business or labor operations to off-set wage inflation,
of operators experienced a spike in turnover.
88%
47%
of operators are currently experiencing annual turnover rates of 50% or more.
Changes in Business Process to Counteract Wage Pressures
Hospitality Organizations Responded in the Following Ways to Wage Inflation
full service restaurants and
+2,400
+85,000
Changes Experienced After the Rise in Minimum Wage
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Business Operations
Reworked Food & Beverage Offerings
Closed Locations
1%
31%
Eliminated Tipping
Labor Operations
of operators closed locations
of operators eliminated jobs
38%
11%
6%
21%
59%
87%
57%
limited service restaurants and
+2,100
+46,500
Link 1 Link 2 Link 3 Link 4
26%
32%
52%
81%
16%
80%
14%
8%
89%
61%
quick service restaurants and
+1,900
+35,500
68%
36%
53%
24%
78%
fast casual restaurants and
+1,200
+32,700
69%
56%
19%
67%
33%
46%
9%
22%
91%
63%
fine dining restaurants and
+40,000
86%
77%
34%
casual dining restaurants and
+1,600
+66,700
66%
74%