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Eateries Cut Jobs as Diners Tighten Belts

The industry has shed 66,500 jobs over the past five months as consumers spend less

By Jim O'Neill,  Newser User

Posted Dec 10, 2008 9:45 AM CST

(Newser) – Restaurant workers are losing their jobs in record numbers as consumers rein in spending and the industry contends with rising ingredient prices, reports the Wall Street Journal. One of the largest US employers, the restaurant industry has been a haven for the unemployed and immigrant workers. Over the past five months it’s lost 66,500 jobs, in the longest stretch of losses since the government began tracking them, in 1990.

Starbucks and Chili’s have begun to shutter unprofitable locations and servers say they’re seeing tips decline as customers cut back. "It is and will continue to be harder to find employment," says a National Restaurant Association researcher. Eateries increasingly are requiring more of their remaining workers, combining duties to save money.

A group of employees, suspected of being undocumented workers, at a San Diego restaurant.
A group of employees, suspected of being undocumented workers, at a San Diego restaurant.   (AP Photo/Lenny Ignelzi)
A tip is left by a customer at Linda's Place Restaurant in St. Clair Shores, Mich.
A tip is left by a customer at Linda's Place Restaurant in St. Clair Shores, Mich.   (AP Photo/Paul Sancya)
Patrons sit inside a Starbucks store in downtown Boston.
Patrons sit inside a Starbucks store in downtown Boston.   (AP Photo/Elise Amendola)
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COMMENTS
Showing 1 of 1 comment
Zebraone
Dec 10, 2008 9:29 PM CST
Good Grief!~~ What are we going to do if the mainstay of our diets dissapear? Without a greasy spoon, we ARE in bad way!

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