People Report Workforce Index Q2 2009

PEOPLE REPORT Q2

09

68.9 66.862.3 60.7

63.1

51.3

43.0 43.8

30

35

40

45

50

55

60

65

70

Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

People Report Workforce Index: Q2 09

The overall reading rose slightly in Q2, but still remained below 50, meaning the labor market remains soft. However, the Employment Expectations component rose to 55.4 for Q2, indicating expected job growth.

People Report Workforce Index: Q2 09 Headlines

•Employment levels continue to decline, but rate of job loss slows

“…after posting job losses of 27,000 in November, and 25,000 in December, the food service industry experienced much lower job losses in the first three months of 2009, including just 9,000 in

March…”

•Recruiting difficulty eases & Decreasing number of vacancies

“…15% of companies surveyed did not actively recruit management employees in the first three months of 2009…”

•Most companies expected to add staff in coming months

“…after declining steadily since Q2 08, the Employment Expectations component rose to 55.4 for Q2 09, indicating expected job growth in the industry. With the exception of Fine Dining/High Volume, all industry segments experienced an increase in Employment Expectations…”

People Report Workforce Index: Q2 09 Employment Levels vs. Employment Expectations

People Report Workforce Index: Q2 09

•While 46% of companies cut management jobs in the Q4 08, 38% made cuts in Q1. 22% of companies reported an increase in employment at the management level in Q1.

•Just 23% of companies reported adding hourly employees in Q1. 45% held staffing levels steady.

•50% of companies posted a decrease in management turnover. 21% reported increases.

•62% of companies saw decreasing hourly turnover rates. 29% posted increases.

•Over 60% of companies expect to maintain their hourly and management workforce. 26% plan to add hourly workers, 20% plan to add management.

Employment Levels

Employment Expectations

Turnover

Employment Levels

TurnoverEmployment Forecast

•Mgmt: 31% cut jobs, down from 48% in Q4, 13% added employees

•Hourly: Just 19% added employees in Q1

•Mgmt: 74% of companies experienced declines in management turnover

•Hourly: 47% of companies saw declines

•Mgmt: 81% of companies plan to maintain their current number of employees, 13% plan to add staff.

•Hourly: Just 13% plan decreases, down from 40% in Q1. 25% plan to add employees.

Quick Service

Fast Casual/Family Dining

Employment Levels

TurnoverEmployment Forecast

•Mgmt: 62% of companies experienced declines, 24% posted increases

•Hourly: 67% of companies posted declines

•Mgmt: 71% of companies plan to maintain their current number of employees. 29% expect to add staff

•Hourly: 71% of companies plan to hold employment levels steady. 0% plan reductions

•Mgmt: 29% cut jobs, 29% added employees

•Hourly: 29% added employees in Q1, 36% made cuts

Casual Dining

Employment Levels

TurnoverEmployment Forecast

•Mgmt: 38% of companies experienced declines with 42% holding steady

•Hourly: 69% of companies posted declines, 19% experienced increases

•Mgmt: 52% of companies plan to maintain their current number of employees, 24% expect to add staff

•Hourly: Just 10% of companies plan staff reductions, down from over 50% in Q4. 28% plan increases

•Mgmt: 38% cut jobs, 24% added employees

•Hourly: 62% held hourly levels steady, 24% made cuts

Fine Dining/High Volume

Employment Levels

TurnoverEmployment Forecast

•Mgmt: 39% of companies experienced declines with just 21% posting increases

•Hourly: 61% of companies saw declines, 29% posted increases

•Mgmt: 67% of companies plan to maintain their current number of employees, 24% expect decreases

•Hourly: 55% of companies plan to hold staffing levels steady, 27% expect decreases

•Mgmt: 52% cut jobs, 19% added employees

•Hourly: 32% reduced hourly levels, 32% adding staff

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