Article published Aug 7, 2006
Ken Day at Idaho Statesman
No shortage of opportunity
Treasure Valley remains a hot spot for restaurant expansion — and food service jobs
If you want to work in a Treasure Valley restaurant, there's no shortage of opportunities. Help-wanted signs are now just as common at area restaurants as the posters announcing the daily specials.
"I need people," said George Doumani, director of operations for area Wendy's restaurants. "So does everyone else."
More than 1,600 jobs are listed at Idaho Commerce and Labor's Treasure Valley offices in the service industry, which includes retail, hotel and food-service jobs. About half of those jobs are in the food service category.
That's not surprising given the low unemployment rate, said John Panter, a regional labor economist with Idaho Commerce and Labor. The rate was 3.1 percent in the Boise-Nampa area in July. Economists consider anything below 4 percent full employment.
"It's not unusual for those kinds of jobs to go begging," Panter said. "The unemployment rate is so low that those willing to work for the wages being paid are pretty well working."
The shortage isn't likely to ease anytime soon:
• Last month, The Cheesecake Factory announced plans for its first Idaho location at the Boise Towne Square mall. It plans to bring in more than 200 full and part-time job openings.
• Later this month, Meridian will get its first Sizzler restaurant.
• Companies like Fuddruckers, which opened this spring at 1666 S. Entertainment Drive near the Boise Spectrum theaters, are already planning new locations.
Doumani, who has been in the Boise restaurant business more than 20 years, said his company has always been able to retain longer-term employees but has struggled lately to keep new ones.
"There are a lot of new restaurants coming in, and when you can be a busboy at one of those new restaurants making $50 to $60 a night in tips, we can't compete with that," Doumani said.
New players
As the Treasure Valley boom continues, the area remains a hot spot for restaurant expansion.
In the first two weeks that Fuddruckers was open, it reported the highest sales of any Fuddruckers restaurant. Two months later, it is still in the top three.
"We were really nervous as we looked around town," said Rick Pottenger, general manager of Fuddruckers. "Everywhere you looked there was a 'now hiring' sign in the window."
But Pottenger said hiring went better than expected because Fuddruckers pays better than average — from $7 to more than $14 an hour.
Stephanie Towne is one of Fuddruckers' new employees. She left a job at another restaurant, saying she liked the upbeat atmosphere and opportunity for advancement — something she wasn't offered at her former job.
"When I started, I was told to work hard at your job, and there will be an opportunity to go further," she said. "I'm already a supervisor and plan to stay with Fuddruckers and work my way up."
Howard Gordon, senior vice president of business development and marketing for The Cheesecake Factory, said each location usually attracts about 2,000 applicants for 200 to 250 jobs. But Gordon said the chain has opened restaurants in far more competitive labor markets than this one.
"We've been at this for many, many years," he said. "There are lots of restaurants in Los Angeles, so you learn that you have to be flexible."
One way The Cheesecake Factory meets its staffing needs is by sharing workers with other larger restaurants. Because many food servers already work two jobs, Gordon said The Cheesecake Factory contacts other restaurants to see if they have employees who want to pick up shifts.
Maintaining employees
Competition for labor helps employees, bringing better wages and benefits, economists say.
Panter, the labor economist, expects that demand will put upward pressure on wages. Most jobs listed with Idaho Commerce and Labor offices already pay above minimum wage, he said.
"There are very few minimum wages jobs left, because people won't work for that anymore," he said.
In Idaho Commerce and Labor's 2005 wage survey, cooks and food preparation workers earned an average $9.01 an hour. Food-and-beverage servers earned $6.62. Other food-prep and serving-related workers earned $6.75.
Fast-food restaurants find it difficult to match wages, but they have started programs to retain and recruit employees.
Becky Darmody, director of public relations for the McDonald's franchises in the Treasure Valley, said things like college scholarship programs for long-term employees have helped retain employees at the 25 stores in Ada and Canyon counties.
More restaurants are also offering benefits, including paid vacations and health insurance. Many also provide bonuses for employees who recruit new hires.
Troy Hansen, operations manager for Chicago Connection, a Boise-area pizza chain, said it's difficult to find employees today, but the problem is not new.
"Right now it's tough, but it's not quite as extreme as the 2000-2001 time frame when the job market was so tight," he said. "It wasn't a matter of pay at that time. There wasn't anyone available to work."
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