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The employment crisis in the hospitality sector.

15681011

Comments

  • Registered Users, Registered Users 2 Posts: 27,024 ✭✭✭✭Dempo1


    Seems people still think the Hospitality sector is run by or dependent Teenagers and college students which is just not the case, they play a roll of course but generally only at a service level.

    There's also a lot of talk about margins and it's true, if Kitchens are Managed properly by professionals exceptionally high margins can be achieved, however all to often Kitchens are not being managed efficiently, partially because of inexperienced staff (increasingly so over the past 10 years) and partially complacency, possibly as a result of dissatisfied staff.

    But the other challenges on wether a food business is viable go way beyond the kitchen. There's little point in breaking down how profitable a bowl of soup is, Food preparation is generally prepared in Bulk with the exception of cooked to order items, Steak, Fish, Chicken etc, it's more cost effective to make 20 portions of a soup or sauce as it is to make 1 portion. How ingredients are sourced, their cost and preparation all of critical importantance in achieving an actual margin.

    Beyond the Kitchen, assuming its managed properly (And they are often Not) is were ultimate Margins are determined, Over Heads, Staffing and Utility costs and ultimately bums on seats. There's ultimately no point in having a fantastic Kitchen and staff if they are essentially producing produce that will ultimately be served at a loss when all costs factored in, it's basic economics. There's a simple way to determine the viability of a restaurant for example. Breaking down all projected costs to include the most trivial of expenses, work out a projected spend per head, weekly turnover etc and base your numbers on a 5 day week even if open 7, basically assume two days of no trade. If you come up with with a net profit, you've some chance of success. It is estimated that it takes a minimum of 18 months for a new restaurant to achieve even a basic profit. Obviously takeaway food business are different so I'm leaving that aside, also worth noting if a restaurant is leased and subject to high rents, the challenges are far greater.

    In essence there's no point in being a busy fool and with increasing costs from produce to utilities, difficulty getting and retaining staff, businesses just have to be realistic on wether they are viable or Not. All to often people open restaurants with grand notions of automatic success without actually doing even basic projections or understanding costs, this is why an enormous percentage fail even in normal times.

    Is maith an scáthán súil charad.




  • Registered Users Posts: 414 ✭✭dorothylives


    True, but there's no minimum customer numbers for restaurants to do that. Hell, my local takeaway place charged us 2.50 delivery and a 50 cent service charge last Saturday, on top of big food price increases. That's the last time they get my business.



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    Can you show me a few examples of these other peoples experiences? Most of them seemed to be the usual moan about everything comments tbh, about Keeling bringing in people from Africa and Pat McDonagh should be paying the living wage from his profits.

    I've "delved" into the industry recently and contracts of employments seem quite reasonable and most jobs include systems such as tronc, 50% discount if you bring your family in for a meal, free on duty meals from the menu, advanced roster software with holidays automatically credited etc.

    But hey ho its easier say its a horrible industry that bullys kids isn't it.



  • Registered Users, Registered Users 2 Posts: 5,288 ✭✭✭Deeec


    😂🤣 Being honest waterwelly the contracts are always great. The promises are always great but the promises are never honoured. Reality is you will have very little time off to bring your family for a meal, you wont have time to have a break to eat your 'on duty' meal, rosters will always be changed and you wont be allowed take your holidays when you want.



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    Oh look, here is a barmans job in Dublin €16-€20 an hour.


    Senior Bartender (Accommodation Can Be Arranged)

    - job post

    Oliver St. John Gogartys

    Temple Bar, County Dublin

    €16 - €20 an hour - Full-time




  • Registered Users, Registered Users 2 Posts: 27,024 ✭✭✭✭Dempo1


    Is maith an scáthán súil charad.




  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    You clearly have no idea of what a slave is. These people can leave and change career. Nobody stopping them. A slave can't leave their job.



  • Registered Users, Registered Users 2 Posts: 5,288 ✭✭✭Deeec


    True - but you know what I mean - employees in this industry are exploited while they are working



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    Exactly, most people there is huge profit in a pub just because a bottle of vodka that costs €25 sells for €125.



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  • Posts: 0 [Deleted User]


    TBF, a student working part time in a pub/ restaurant/hotel, in a job requiring no qualifications, no experience and little brainpower is not being exploited if they are earning €10.50 per hour.



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    Is this based on your actual recent experiences working in a whole lot of places or something you just made up?

    Why would you have little time off to bring your family for a meal?

    Why would you not get time to eat your meal break on a wet Wednesday night?

    So people book a sun holiday and let their employer know 6 months in advance. Then when it comes to it they are not allowed go and they lose all their money. Any actual example of this please?



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    Every single one of them are exploited, all the time, really?



  • Registered Users, Registered Users 2 Posts: 1,211 ✭✭✭mikeybhoy


    Wetherspoons would be a more no frills Ryanair/Lidl of pubs type model. They don't have as many staff as a regular pub, service is generally poor in most of their pubs, ordering on the app probably saves them money in some way or another and less overheads such as paying for Sky Sports which would be a big expense for most pubs.



  • Registered Users, Registered Users 2 Posts: 27,024 ✭✭✭✭Dempo1


    The pub sector has its own challenges , my post focused on a typical sit down restaurant but yes , it can't be assumed Pubs are automatically profitable. If it were just a simple case of purchasing alcohol at wholesale prices and flogging it at no operating costs we'd all be in the game . Margins on Kegs as an example have diminished considerably over the years.

    My experience would mainly be food , Hotel management, Restructuring, Stock control , Supply chain and financial planning etc so I'll leave pubs to those in the know 😏 oddly despite a long career in Hospitality, I actually don't drink alcohol 😁

    Is maith an scáthán súil charad.




  • Posts: 0 [Deleted User]


    They've chosen to remain in a career that pays low, and treats them like crap. There's no slavery going on.

    Anyone can go online, study for a few weeks how to programme or design webpages, making enough money from freelance work to cover what they'd make working at most entry level hospitality gigs. It's not easy but the option is there for anyone. Besides that, there are a wide range of far better options to making money that those two examples with a little bit of time commitment. I've been making decent money teaching English online, and I suspect I'm earning more than most of the people that would be doing these unskilled hospitality gigs.

    People choose to work these low end jobs. Nobody is forcing them.



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  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    A pint of guinness costs about ~€2.20, so the lad in Temple bar selling it for €6.60, so 200% "profit", not a bad margin😂😂

    Then it goes to €8.80 at 11pm so its 300% "profit margin"🤣🤣

    That is all most people see and don't want it explained to them about barmen, security, musicians, cleaners, rates, insurance, sky sports etc. etc. etc.



  • Posts: 0 [Deleted User]


    Just as there's a difference between Jaime Oliver restaurant and an average hotel in Ireland. You changed the narrative by introducing the name, and the associated hike in perceived quality/value.

    You've just reinforced my point. Thanks.



  • Registered Users, Registered Users 2 Posts: 5,288 ✭✭✭Deeec


    Ive detailed earlier in this thread that my husband used to work as a chef ( look back over the thread). He had to get out of the industry because it was just so toxic. We had no family life at all. The issues were always caused by owners skimping on staff or not treating staff well ( so they just leave) which puts all the other staff under pressure. There is no back up plan if someone is sick for instance - that means the scheduled person that is off has to work to make up for the person thats sick. This situation could mean staff working 7 days with no day off is someone else is sick or on hols. The 'show' must go on no matter what so staff are bullied by owners to make the show happen. Believe Holidays were always an issue too - In the situation you outliined if it was booked you would just go but you would never be given more than 1 weeks hols.

    For example I was miscarrying a baby and my husband was not allowed leave work. He left work anyway because naturally he was upset, worried about me and wanted to be with me in hospital. His pay was withheld the following week as punishment. He got it paid 3 days later but this is an example of the pettiness that goes on. These were high end restaurants by the way that he was working in.

    His advice to anyone wanting to train as a chef would be not to do it. It used to be a good respected profession but not anymore. Its really hard work for long hours - their work is really under appreciated.



  • Posts: 0 [Deleted User]


    Deeec, let’s be honest, your husband knew what he was getting into when he became a chef. If it came as a surprise to him or you that breaks are difficult to come by during service hours, you have to wonder what he was looking at from the day he began training.

    There are newly qualified graduates, including solicitors and I dare say accountants starting off on not much more than minimum wage, so saying hospitality workers working jobs which require no qualifications are being exploited whilst working/earning within employee legislation is BS.



  • Registered Users, Registered Users 2 Posts: 5,288 ✭✭✭Deeec


    Well when he started out he did expect to have breaks - wouldnt everyone expect to have a break during their working day. He did expect that the teams would be structured that breaks could be allowed but that wasnt the case.

    Most professions are happy to start off on low wages and bad terms but that pay and terms improves over the years as you gain experience. In the hospitality industry this doesnt seem to be the case which is causing the problems we see in the industry now.



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  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    I hadn't seen your earlier post, but one bad experience does not define the whole industry. I had a quick look and head chef jobs are paying about €70000, after that its up to the chef to put his foot down and refuse to come in on his day off or work later than contracted.



  • Registered Users Posts: 965 ✭✭✭SnuggyBear




  • Registered Users, Registered Users 2 Posts: 27,024 ✭✭✭✭Dempo1


    To be fair , very few going into the hospitality sector professionally are not looking at the salary or hours , it's a calling that may or may not work out , few new recruits know about the hardships beyond accepting training will be tough, there's nothing in the handbook that mentions poor working conditions, excessively long hours, lack of breaks , time off, non payment of entitlements etc.

    Other graduates you've used to compare of course work long hours , complete extensive training and courses but ultimately achieve careers in highly regulated sectors, much less working hours, career progression, good salaries and pensions, there's no such Luxuries in hospitality and early burn out, dissatisfaction and departures very common.

    There was a time I knew people in the industry who'd been in it for decades, over the past 30 years I've met very few who've lasted more than a few years and that's just being totally honest.

    Is maith an scáthán súil charad.




  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    The pampered generation expect Pat McDonagh to give every teenager a company car the day he starts, sure it can come from his profits and the food prices don't need to increase!



  • Registered Users Posts: 515 ✭✭✭TheTruth89


    So essentially it's a failed business model then? Little to no profits for the owners according to you, **** wages and a miserable working environment for the worker, and over priced end product for the consumer.

    Best of luck fixing that.



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    You clearly don't understand how these things work. If the owners paid themselves €80K salary each (lets assume its a couple) then they could have a decent lifestyle without the business ever being really profitable.

    And for the umpteenth time €11 an hour is not a sh1t wage.

    You are from the Sinn Fein school of economics, €15 minimum wage and pints for €2.50.



  • Registered Users, Registered Users 2 Posts: 15,426 ✭✭✭✭Fr Tod Umptious


    It's a changing business model.

    We have evolved as a society.

    The demand for eating out and easy tech based delivery services has grown in the last two decades.

    So there will always be a market for people to try and get into, but until someone becomes really established in that market it's a hard slog.

    As another poster said it's a 18 month job just to test the water.

    And this current shortage notwithstanding there will always be a jobs market of some sort for the unskilled and unqualified.

    Some may be unskilled and unqualified because they are young and just starting out, others because they just never developed the skills or qualifications.

    And hospitality jobs fit.



  • Registered Users, Registered Users 2 Posts: 7,125 ✭✭✭timmyntc


    €11 an hour is a **** wage unless you are a student

    Try running a household on €11 an hour, running a car, paying rent or mortgage.



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    You don't pay rent on €11 an hour. You get the rent supplement.

    You don't stay on €11 an hour either, you either get a supervisors job or go work elsewhere that pays higher.

    Its the second highest minimum wage in Europe.



  • Registered Users, Registered Users 2 Posts: 7,125 ✭✭✭timmyntc


    So are you justifying the crap wages by saying the state should step in and pay your bills?

    If the wage is so low as to require welfare supplements, it is a sh*t wage.


    We also have one of the highest costs of living in Europe.



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  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly



    Its an entry level wage, get experience on your CV and move on.

    There has to be a lowest wage, we have to set the bar somewhere, in Ireland its €10.50, the second highest in Europe.

    The idea is not to be stuck on it for any longer than necessary.

    You seem to think we should be pay 18 year olds with no experience €15 an hour and then you will be moaning about the price of everything.



  • Posts: 0 [Deleted User]


    I'm curious, even though it's a **** wage, are you justifying peoples choices to stay on that wage? Who is supposed to pick up the difference so that they can remain working at a job that isn't sustainable long-term? I get the feeling that the employer is supposed to increase such wages, but in doing that, every position above that basic level, will also need an increase in wages to compensate for the perceived difference in value being provided. No?



  • Registered Users, Registered Users 2 Posts: 7,038 ✭✭✭circadian


    I love the silver bullet solution of "get a job that pays better" while even those on what would be good salaries are also starting to feel the pressures of inflation.


    Not to mention that it's not always that easy to just go get another job that pays more.



  • Registered Users, Registered Users 2 Posts: 13,766 ✭✭✭✭Geuze



    5% - 7% of workers are on the min wage, concentrated among young people.

    It is not expected that these people own houses, so the min wage need not support a mortgage.



  • Registered Users Posts: 330 ✭✭cezanne


    I'm a food supply employee all the restaurants buy in the fruit & veg already prepped in plastic bags spuds peeled carrots sliced or grated they dont employ comms chefs anymore they just slice open plastic bags also the steaks are ready to cook all cut the same weight cakes & desert's all bought ready to go they are usually frozen & just thawed as needed/. All fish is deboned and filleted so the chef just cooks & the waiters work like dogs. Even the mashed potatoes come from holland in sealed bags its vile they add a bit of cream & salt and you all pay a fiver for a side order of spud. Chips are par fried just need one dunk in hot oil. Its un real how duplicitoius it all is behind the scenes and i wont tell you about the barrels of chicken thats re bagged in Kildare might put you off !!The joy of eating out was spoiled for me so i dont miss it but you are all being ripped off big time.



  • Posts: 0 [Deleted User]


    Those on good salaries are feeling the pressure because as their salaries increased, so too did their standards of living, along with the associated costs involved. If they were still living the way they did when they were earning much less, they'd be feeling the effects of inflation far far less... but nobody expects them to, because moving up in quality is to be expected.

    That's why merging the two scenarios makes little sense.

    Not to mention that it's not always that easy to just go get another job that pays more.

    Of course not, Not always. But in most cases, if you're on minimum/low wages, it would be relatively easy to change to a different job that offers a higher salary with a little improvement in skills/education. Simply becoming an entry level credit controller would get you off min wage, and there generally aren't any excessive requirements.. the same can be said for a wide range of administrative or office type jobs, such as customer service, often without any need for experience or third level education.



  • Registered Users, Registered Users 2 Posts: 29,909 ✭✭✭✭Wanderer78


    ...again, this kind of ignorance is regularly trotted out, but again, we actually dont live in this perfect world, whereby people can just simply retrain and wonder into other sectors with greater pay and conditions, and theres plenty of stats to support this also! for example, if a person fails to gain a foot hold in a career in their twenties, the odds of them doing so, later in life, rapidly diminishes, they will more than likely remain either long term unemployed, or in low waged work for the entirety of their working career. this is actually a common occurrence, for various different and generally complex social reasons, including rising wealth inequality etc etc



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    Who is saying its a silver bullet solution?

    I, and others, are consistently pointing out that wages must start somewhere and once you have experience you move on.

    Its easy find a job that pays more when you are on minimum wage. Dunnes, Aldi etc. all pay more.

    You can get a job in a restauarant that pays tips, €3-€5 and hour is not uncommon, you just need to do your time in Supermacs etc. first.

    Everybody is feeling the effects of inflation, that is largely because there is a war going on. Not really sure what you point is there in relation to this thread.



  • Registered Users, Registered Users 2 Posts: 6,709 ✭✭✭Feisar


    Don't mention the ready to go dinners some places are serving at weddings...

    First they came for the socialists...



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  • Posts: 0 [Deleted User]


    There's also plenty of stats showing people who do manage to reskill and enter better careers successfully. Oh, they're very unlikely to achieve the same level of success as those who entered ahead/before them, but we're talking about people who are on minimum wage here. The step up from that level to something better isn't that difficult.

    this kind of ignorance is regularly trotted out,

    Context is important...



  • Registered Users, Registered Users 2 Posts: 2,232 ✭✭✭waterwelly


    Its really not Pat McDonaghs fault though if somebody fails to make progress in their 20's.

    Setting the minimum wage to €20 an hour as a safety net for these people is not the solution.

    Its up to them to make the most of their lives, and idling working in pubs or chippers is not the employers fault.

    I rarely see anything but young people in McDonalds except supervisors.



  • Registered Users, Registered Users 2 Posts: 29,909 ✭✭✭✭Wanderer78


    exactly, context is indeed important, and this seems to be something some are seriously lacking!

    once again, the facts, if you remain in low waged going into your thirties, the chances of you 'escaping' this trap are seriously against you, this is due to multiple of complex social reasons, of which are largely out of the individuals control! yes there are also facts showing many do indeed 'escape' this trap, but most simply dont, and cant! these are the facts!



  • Posts: 0 [Deleted User]


    Have people ever been able to do all those things solely on minimum wage? I doubt it. Minimum wage jobs are the lowest paying usually because they have the lowest entry requirements and the lowest requirements for aptitude. People who don’t like it move on to better paying jobs if they can, if they can’t, then there is a reason why they are doing minimum wage jobs.



  • Registered Users, Registered Users 2 Posts: 29,909 ✭✭✭✭Wanderer78


    once again, many, if not most, simply cannot do this, for various complex social reasons, this is the nuisances of our reality! this is what occurs in a world of rapidly rising wealth inequalities, of which we re now experiencing, it effects what we call 'social mobility'!



  • Registered Users, Registered Users 2 Posts: 7,125 ✭✭✭timmyntc


    The problem is bar and restaurant work being seen as an "entry level" or minimum wage industry - thats not normal in Europe for hospitality to be almost exclusively staffed by students and immigrants



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  • Posts: 0 [Deleted User]


    That is an interpretation of the facts not that the facts are immutable and should be applied across the board. I'll give two very simple examples of how min wage can be put behind someone.

    Two friends. One was working in a cafe, but was on welfare supplements as a single mother. Signed up to a scheme to start her own online business, received sponsorship from welfare to do so, now runs a fairly successful online marketing business where she plugs social media, and helps niche (in her case, yoga/meditation) companies with their websites/online presence. Welfare supported her development by introducing her to a support community, and workshops to expand her skills. Before this, she had zero experience or knowledge of such things. She's not raking in the cash, but she's more than covering her costs of living, and has the scope to expand into other things.

    Another friend was working in a bar and needed a way out. I suggested that he try Finance, in particular credit control (where I started originally), which didn't require him to have a university degree (which he doesn't have), or experience. The company provided him with basic training, popped him on a phone, with a long list of bad debts. His basic salary is a few euros above minimum wage, but his commission from meeting targets boosts him well beyond his past lifestyle.

    Neither of those examples require any real education, and in fact, most people already have the basic skills to do the roles. The problem is that people get "stuck" believing that they're only suited to one particular job or industry.. but the truth is that there are plenty of options for those willing to explore those other options.

    The only truly stuck people are those limited to particular geographical areas due to other responsibilities, and are lacking the options available in bigger population centres, but even for them, an internet connection provides the basic foundation to be earning far more than minimum wage.

    these are the facts!

    No, they're excuses and justifications. It's true that it's far more difficult for people as they enter their late 30s and mid 40s to reskill and change careers, but a lot of that is based on past expectations towards having a traditional career.



  • Posts: 0 [Deleted User]


    We have a highly educated society and good employment opportunities, prior to Covid there was full employment, and astonishingly we are approaching that again. So it’s stands to reason that students/foreign workers with no qualifications are more likely to occupy those positions than in parts of Europe where there are less opportunities/low paid hospitality jobs are long term jobs by necessity or choice.



  • Registered Users, Registered Users 2 Posts: 5,367 ✭✭✭JimmyVik


    It is in the Europe I know. The more expensive places will of course have more expensive staff though



  • Registered Users, Registered Users 2 Posts: 7,125 ✭✭✭timmyntc


    We are one of the more expensive places though, but we do not pay our staff more.

    Well it looks like even those workers dont want to do it anymore, based on the staffing shortages.



  • Registered Users, Registered Users 2 Posts: 5,367 ✭✭✭JimmyVik


    By one of the more expensive places i meant more expensive establishments.



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