Carlos Larrea is barely 30 years old and he has already had time to live and suffer all the possible states of the hospitality industry. From feeling well paid at 12 euros an hour in his native Logroño, to seeing that in Cádiz, where he decided to move to live seven years ago for love, he was only going to earn six for the same job. From seeing himself “eating shit” to the point of leaving the sector, to deciding to return as the owner of Desvelo, a cocktail bar in El Puerto de Santa María. Just in these days of Holy Week in which the coast begins a season of full tables that does not end until October, Larrea has added a new experience to that relationship of chiaroscuro: sweat the ink to find the worker he needed to face this half year coming. “It has cost its own and that I try to offer all the conditions that I have not had,” explains Larrea, who is now self-employed.
In Spain there are 300,000 bars, restaurants and cafeterias —according to figures from the Spanish Hospitality Confederation— in which 1,352,782 people work, as recorded by Social Security in 2022. The employers assure that, in high seasons such as those that They begin with Holy Week, “between 30,000 and 50,000 jobs may become vacant,” according to Emilio Gallego, General Secretary of Hospitality in Spain. “We are the tip of the iceberg of a problem that is going to worsen in other sectors due to the aging of the population,” adds the hotelier. But, on the other side, the Comisiones Obreras union doubts the data and points out another: the number of contracted in 2022 already exceeded the average affiliation of 2019 by 0.53% and turned out to be 13.71% more, if compared with the affiliations of 2021, a year still marked by the restrictions of the pandemic. “The jobs have been filled. There is no shortage of hotel workers, there is a lack of working conditions”, explains Gonzalo Fuentes, head of CCOO Hospitality.
If it is already difficult to find a consensus among the actors involved on the problem itself, determining its causes is even more complex. Hoteliers, unions and waiters point to a tidal wave of factors. The first defend the population drop in developed countries, the discouragement of working when the rest of the population is at leisure and the difficulty of finding accommodation for the worker due to the tourist boom. On the other side, workers point to abusive conditions, breaches of the law or black hiring. Both parties only agree on the loss of prestige suffered by the sector. “They are burning the vocation of being a waiter,” complains Jesús Soriano, a worker in a bar in Alzira (Valencia) and manager of the viral account on Instagram and Twitter I’m a waiterwhere he uses humor to denounce the abuses of the sector.
Soriano believes that the social discredit suffered a qualitative leap with the pandemic: “Many of the waiters who were affected were hired for fewer hours, and when they went to request the ERTE they were left with one hand in front and the other behind. There were people who clicked and changed sectors. There will always be people who accept it, because there are those in need, but there are no longer 100 in the queue”.
Specifically, Larrea has only had three candidates for his part-time contract vacancy at 7.50 euros an hour —above the agreement in Cádiz, which marks the hour at just over 6.50 euros— and “the interview was only He presented one,” he admits. You just have to take a look at the social networks of Cadiz businesses to find more offers these days. A few steps from Desvelo de Larrea, in the Entremareas tapas restaurant in El Puerto, they have already given up their search. “We are five and we should be seven. It already happened to us last summer. My boss offers about 1,200 euros for eight hours, but people don’t want to”, says the manager Patricia de la Aza indignantly.
The province of Cádiz was already becoming fashionable before the pandemic and now its growth in tourism seems unstoppable. In this changing situation, the president of the hoteliers of Cádiz, Antonio de María, raised last March in a tourism forum organized by 8TV to hire Moroccan hotel students to make up for the supposed absence of local workers.
The proposal is not new, it is a debate at the European level that Spain has assumed with the flexibility of hiring foreigners, but it surprised and outraged the unions in a province with 25% unemployment, according to the latest Active Population Survey at the end of of 2022. When Gallego heard his colleague’s proposal, he knew that “they were going to misinterpret and caricature” him, but he defends the need to “open a calm debate.” “There are options to feed back the economy of both countries without causing damage, if they are not covered, why are we not going to offer it?”
The historian José Berasaluce, director of the Masterñam gastronomy master’s degree at the University of Cádiz, has spent four years analyzing power relations in the sector for his doctoral studies. He is clear that in the profession “there is no personal lack, but dignity”, but he flees “from binary debates of good and bad” and focuses on the client. “People are not willing to pay more for beers. Perhaps it is that we deserve a tourist destination of quality and not of volume. The employer cannot make money at the expense of the suffering of the workers. We cannot sell paradisiacal destinations at the expense of rotten apples because the tourist is not stupid, he does not want to have slaves to serve him ”.
Berasaluce has analyzed the 52 provincial hospitality agreements and their abysmal differences: “The labor authority allows abuses because a relationship of domination is generated. In Cádiz, one of the lowest agreements in Spain, labor poverty is promoted in the sector. The base salary of a waiter, 1,065 euros per month, is 40% lower than that of other areas of Spain”.
It was what Larrea discovered when he moved to Cádiz. Now that he is self-employed – “I’m little, I’m not a businessman”, he clarifies -, he tries to pay as much as possible per hour, but he runs into viability limits: “I pay 3,100 euros per year for the terraces and 1,700 per month for rent. The prices of everything have gone up and I don’t have the same profitability, but I have the limit on the price, I can’t charge more than 6.50 euros per cup”. It is a widespread dichotomy in Cádiz and precisely from which Berasaluce defends that it is necessary to flee as a solution of prosperity for the sector. In his study, he has crossed the conditions of the provincial agreements and the recognition of Michelin Stars and Repsol Suns and has found a correlation: “Barcelona had 41 stars in 2018, compared to Cádiz, which had two. There the agreements and salaries are higher, a process of equality takes place, compared to the inequality of the south. The south is vampirized and in Andalusia the waiter does not even retire in the sector ”.
The businessman José Manuel Córdoba, manager of the Ventorrillo El Chato restaurant, has retired one of his 25 employees for days. It is almost an island in a sector in Cádiz, conceived as a temporary job for young people marked by seasonality. He is clear that his thing is not to compete for price, but for quality, and he criticizes the “double morality” that operates in the sector, from clients to businessmen. “Have I had to assume that El Faro [su negocio forma parte de un grupo hostelero con tres restaurantes y un catering] It is expensive? Yes Yes I buy a kilo of urta at 35 euros and sell it at 80, I don’t care about the criticism, the staff have to earn money because their salary is not an expense, it is an investment”, the hotelier explains bluntly.
Berasaluce is not optimistic that the example of Córdoba will spread: “We are going bankrupt in the sector. This must be politicized in a good way, and seat more agents to achieve a better future”. Córdoba is aware that the challenge is great, but he prefers not to lose hope. “I would love a very decent, very good and very professional hotel business in Cádiz and that we were all on the same line, that is my summary”, exhorts the owner of El Chato, although his words sound almost like an act of faith.
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Working in hospitality is challenging at the best of times, but during this extended, post-pandemic period in which staff shortages and turnover are exceptionally high, working in a service role is harder than ever. According to a report, an average of 6% of hospitality staff resign every month.How does the hospitality industry contribute to the economy? ›
Revenues generated by the hospitality sector assist governments in constructing vital infrastructure such as bridges and train lines, which aids in the development of those regions and; thus, improves the standards of living.What is important in hospitality industry? ›
People working in hospitality understand that when guests visit a restaurant they expect more than a meal. Customers expect a positive greeting, friendly, attentive service, and a nicely decorated venue. These things collectively contribute to an overall positive hospitality experience.What is in the hospitality industry? ›
The hospitality industry is a large subsection within the service industry and is comprised of four main areas: Food & beverage, travel & tourism, lodging, and recreation.What are the biggest challenges facing the hospitality industry? ›
- Experience and Personalization. ...
- Sustainability. ...
- Increase in Hospitality Tech. ...
- Changing Consumer Demands and Markets. ...
- Rising Operational Costs.
The Supply Chain
Many restaurants put money into the local economy. From paying rent or property taxes to utilities, restaurants pump a lot of cash into the local economy.
With over 1.1 billion guest nights annually, supporting $1.1 trillion in sales, the hotel and lodging industry is stronger, more vibrant and more innovative than ever before. With hotel industry sales of $245 billion in 2015, supporting $1.1 trillion of U.S. sales, consumer demand for lodging has never been higher.What does the hospitality industry contribute to an economy quizlet? ›
What does the hospitality industry contribute to an economy? In the United States hospitality is the second-largest employer and has about 15 million employees. It contributes to the economy because it generates more than $1 trillion each year.What are 3 benefits of the hospitality industry? ›
- It can help you improve your communication skills. ...
- It can make traveling easier and more affordable. ...
- It can enable you to advance quicker in your career. ...
- It can open up many networking opportunities. ...
- It can help you become more proactive.
Yes, it's the customer service which acts as the soul of hospitality. Service in the hospitality industry is the level of assistance provided by a hotel staff to facilitate the purchase by the client. Here are some tips to ensure that customer service is met.
While the hospitality industry covers several different services, it can generally be defined through five different sectors. These sectors include food and beverages, lodging, recreation, travel and tourism, and meetings and events.What is the main object of hospitality? ›
1. To purchase & acquire land for establishment of hotels, holidays, resorts, villas, lodgings, stalls, garages, summerhouses, chateaus, castles, inns, hostels, road houses, motels, taverns, rest houses, guest houses.What is hospitality in simple words? ›
Hospitality means extending a welcome to travelers or offering a home away from home, and the word is derived from the Latin word “hospes” meaning visitor or stranger.What is the hospitality industry summary? ›
Hospitality is an industry that includes restaurants, hotels, casinos, amusement parks, events, cruises, entertainment, and other tourism-related services. As such, this industry isn't just important to businesses, but also to customers, employees, and economies.What are the 4 phases of hospitality? ›
In fact, there's a famous saying in the hotel business arena and it goes like this (This is not my quote, so apologies if this goes a bit too far in expressing the truth); A good hotelier is a Democrat, a diplomat, an acrobat, an autocrat, and a doormat, all wrapped in one.What are the weaknesses in hospitality industry? ›
It takes a lot of effort and money to build up a hotel and then run and manage the same. It can take years to get to the profit zone for high-end hotels. Huge investment and operational costs are key weaknesses of the hotel industry.What are 3 factors that can affect the hospitality industry? ›
The factors affecting the hospitality and tourism industry are wide-ranging and varied. Natural disasters and weather changes, as well as transportation services and consumer protection laws, all have an impact on how hotels, motels and resorts do business.What are three common ethical issues of the hospitality industry? ›
- Employee Theft. Employee theft is an ethics issue in nearly every industry. ...
- Dishonest Cleaning Practices. When guests stay at a hotel, they expect to stay in a clean room. ...
- Providing Inferior Supplies. ...
- Hotel Espionage.
In the U.S. alone, the food industry drives about 5 percent of total GDP, supports 11% of employment and accounts for 10 percent of consumer discretionary income. Globally, food consumption accounts for $4 trillion in spending.
The tertiary industry is a technical name for the services sector of the economy, which encompasses a wide range of businesses, including financial institutions, schools, hotels, and restaurants.What are the major factors affecting the growth of the restaurant industry? ›
- Seasonality. Restaurant sales tend to fluctuate with seasons. ...
- Quality of service. ...
- Menu & pricing. ...
- Location. ...
- Restaurant experience and branding. ...
- Capacity and diner turnover. ...
- The economy.
The output of the U.S. full service restaurant industry experienced similar growth in recent years and reached an estimated total of over 72.8 billion U.S. dollars in 2021. For many in the U.S., restaurants have become an essential part of everyday personal and professional life.What are the effects of hospitality and tourism in the economy? ›
There are number of benefits for the host community as a result of tourism. This includes economic benefits such as opportunities for local businesses which allows for increased trade among the increased number of visitors and then develops a variety of local businesses.What industry contributes the most to the United States economy? ›
In 2021, the finance, insurance, real estate, rental, and leasing industry contributed the highest amount of value to the GDP of the U.S. at 21 percent. The Construction industry contributed around 4.1 percent of GDP in the same year.What is the economic definition hospitality industry? ›
The hospitality industry is a broad category of fields within the service industry that includes lodging, food and drink service, event planning, theme parks, travel and tourism. It includes hotels, tourism agencies, restaurants and bars.What are the factors contributing to the growth of hospitality industry? ›
The essential factors, influencing the success in the hospitality service industry, are as follows: value creation, development of the relationship with partners, ICT, as well as customer relationship management.What are economies of scale in the hospitality industry? ›
Economies of scale refer to a businesses' ability to reduce costs, increase production, and standardize its processes. While the service industry relies on individual skills and cannot capture economies of scale in the same way as manufacturers, some similarities remain.Is the hospitality industry growing or declining? ›
|Market Size Available||2022 – 2028|
|Forecast Period||2023 - 2028|
The leisure and hospitality industry, which before the pandemic accounted for much of the country's job growth, is still short roughly 500,000 employees from 2020 levels, even as many other sectors have recovered.
Fewer caregiving options, early retirements, and an overall decrease in workforce participation are among the reasons for the current labor shortage.Why are hotels understaffed? ›
In part, it's because COVID-19 forced a shift in priorities for many hospitality workers. The core reason for this is that most hospitality companies are understaffed and are unable to quickly fill the gaps in their workforce.Why is the hospitality industry so hard? ›
For months and months the hospitality industry suffered dreadfully at the hands of the global pandemic. Lockdowns came and went, leaving operators with the unenviable choice of either spinning their operations up and down each time (no mean feat) or simply shutting up shop until life returned to some form of normality.Why people are leaving the hospitality industry? ›
Bad managers, burnout, and health fears are causing record numbers of workers to quit the industry for good.What is the failure rate in the hospitality industry? ›
The restaurant business is a tough one to succeed in. A study on restaurant failure rates found that 60% of restaurants don't make it past their first year and 80% close within five years of their grand opening.What industry has a shortage of workers? ›
Labor shortages are plaguing the transportation industry nationwide, disrupting one of the economy's most critical support systems. The sector is struggling to hire truck drivers, warehouse personnel, couriers, skilled technicians and public transit workers.What industry is most short staffed? ›
For example, durable goods manufacturing, wholesale and retail trade, and education and health services have a labor shortage—these industries have more unfilled job openings than unemployed workers with experience in their respective industry.Why such a shortage of restaurant workers? ›
The current restaurant staffing shortage is as much a result of people moving to new industries as it is workers staying home. The fact of the matter is, restaurant workers have a litany of grievances that have been overlooked for some time. Here are just a few examples.Is there still a labor shortage 2023? ›
Economists are predicting a slowdown in labor market activity in the U.S. in 2023 due to a likely recession, a continued battle with inflation, more layoffs and higher unemployment.Are restaurant and hotel workers quitting? ›
Restaurants and hotels saw more of their workforce quit in February than employers did in virtually every other type of U.S. business, with 6% of the hospitality industry's total labor force walking off the job, according to new data from the U.S. Bureau of Labor Statistics (BLS).
There are a number of reasons for this, including having a lack of an original concept, knowledge of costings, bad quality food, or issues with customer service.Why is being understaffed a problem? ›
Overworked staff: Understaffing means that existing staffers are working more days and longer hours, which can cause serious safety issues. When staff members burn out, their chances of accidents, illness and injury increase. Mistakes at work: Overworked staff are likely to overlook things and miss deadlines at work.Why is understaffed an issue? ›
An understaffed team is a stressed-out team
Piling the work on a few will put pressure and stress on those individuals. They may become overwhelmed with the workload and hence suffer from stress-related problems, leading to poor performance levels.
A recent survey of 500 hoteliers by the American Hotel & Lodging Association (AHLA) found that 97% of its members reported being understaffed with 49% classifying themselves as severely understaffed.