HomeMarket NewsThe Impressive Growth of the Restaurant Sector: Key Insights from Gordon Haskett

The Impressive Growth of the Restaurant Sector: Key Insights from Gordon Haskett

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The month of September witnessed a significant surge in new jobs created, with the restaurant sector leading the way. Gordon Haskett Research Advisors reported that there were 336,000 jobs added during this period, marking the highest increase since January. However, despite this positive development, the unemployment rate was slightly higher than expected, settling at 3.8%.

The total employee count in the sector rose from 60,700 to nearly 12.4 million in September, signifying remarkable industry growth.

The food service and drinking places sector played a major role in this surge, adding approximately 61,000 jobs. This accounted for 18% of the overall non-farm payroll increase in September, surpassing pre-Covid-19 levels.

Although job growth was apparent, wage inflation in the sector experienced a slight decline. In August, it dropped by 80 basis points, settling at 5.5% and an average wage of $18.03. While this is lower compared to June (6.1%) and July (6.3%), it still indicates favorable earnings for employees.

Furthermore, global franchise stocks such as DPZ, WEN, YUM, and MCD all experienced a decline of 2-3% on Friday morning. This decrease can be attributed to the market’s perception of a “higher for longer” stance on interest rates by the Federal Reserve, which could impact valuation multiples.

Another notable statistic is the increase in the quit rate for the Accommodations and Food Service job sector. In August, it rose to 730,000 or 5.1%, compared to 542,000 in July. This data suggests a growing confidence among employees, potentially leading to further job movements within the industry.

More Insights on the Food and Beverage Sector:

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