Tuesday, June 11, 2024

Don't Wait for the Gold Rush of Unions! Sell Your Restaurants Now & Cash in Before the Bargaining Chips Fall


Foodservice Solutions® team including Steven Johnson our Grocerant Guru® wanted to take a look back, and a look forward at the intersection of unions and restaurants in the United States. We think you should do the same.

A Historical Perspective 

The restaurant industry has a long history of unionization, dating back to 1891. The first restaurant union, now known as Unite Here, was established to attract union factory workers. Unionized restaurants were seen as badges of honor, signaling higher quality food and service. However, the decline in manufacturing led to a decrease in restaurant unionization. 

The Resurgence of Unions 

In recent years, there has been a resurgence in unionization in the restaurant industry. High-profile shops have attempted to organize, hoping to narrow the gap in unionization rates. This resurgence is reminiscent of the early 20th century when unionization was common in the industry. 

The Impact of Unions on Restaurants 

While unions can provide benefits such as better wages and job security, they can also be a source of conflict between employees and management. Unions can make it difficult for restaurants to respond to changes in the marketplace. They can also reduce the profitability of an investment, discouraging further investment. 

The Current Restaurant Industry Trends 

The restaurant industry is moving ahead with cautious optimism. Most restaurants are looking to expand digital ordering options, improve loyalty programs, and invest in new POS technology. However, the industry is also facing labor, interest rate, and inflationary headwinds. 

Who's Winning a Larger Share of Stomach

with Unions

The Time to Sell is Now 

If your brand position is weak, slowing, or you are capitulating market share to other newer concepts then; given the resurgence of unions and the potential challenges they pose, coupled with the current industry trends, it might be a strategic move to sell your restaurants now. Selling before the "Gold Rush of Unions" allows you to cash in before the bargaining chips fall. This move could potentially maximize your profits and allow you to invest in other ventures. 

It is time to think about this, the history of unionization in the restaurant industry provides valuable insights for current restaurant owners. As the industry evolves and unions gain momentum, it's crucial to stay ahead of the curve and make strategic decisions that will benefit your business in the long run. 

Don’t over reach. Unions are dynamic, your brand can’t just sit back and wait.  Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

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