Catersource State of the Industry 2024, Part 3: The Crucial Case for Company Culture

Editor's Note: This is part 3 in our State of the Industry 2024 series. Check out Part 1 and Part 2.

Despite improvements in the overall economy, labor remains a critical issue in the food and beverage industry with nearly a quarter (23%) of the industry expressing concern over shortages today, according to Expert Market’s food and beverage report survey. 

Additionally, 82% of businesses are actively seeking new hires, highlighting the long-term difficulty of staff recruitment, retention, and training, according to the survey. This is particularly acute in hiring skilled culinary roles like chefs and cooks who represent 30% of open roles across the industry. 

To put this in perspective, 19% of respondents to the Catersource survey indicated that the number of employees has decreased since this time last year, whereas 44% of respondents didn’t see any change. In fact, 57% of survey respondents said labor shortage/lack of skilled labor was their biggest challenge in 2024.  

One of the key contributing factors to the labor shortage is the aftermath of the COVID-19 pandemic. The pandemic resulted in widespread layoffs and furloughs across the industry, leading many workers to seek employment opportunities in other sectors or pursue alternative career paths. This resulted in less qualified  or even interested individuals wanting to work in the food and beverage industry. And now, businesses in the food and beverage industry are struggling to attract and retain talent. 

Related:Catersource State of the Industry 2024, Part 1

One of the primary reasons for the hiring challenges is the mismatch between job requirements and available skills. As the demand for skilled workers continues to rise, businesses are finding it challenging to recruit candidates with the necessary experience and expertise. Additionally, the stigma surrounding the industry, including long hours and low wages, has further exacerbated the hiring difficulties. In fact, employee burnout (see the winter issue of Catersource for a deeper look at this topic) is especially common in demanding hospitality industry roles, according to study by BBADegree.org. 

Additionally, the hiring process in the food and beverage industry has become increasingly competitive, with businesses vying for a limited pool of qualified candidates.  

“Hiring isn’t the biggest challenge anymore—it’s finding the right people who fit and elevate company culture,” says Chris Sanchez (LUX Catering & Events). “Today’s workforce has different expectations; they want balance, flexibility, and higher pay. These changes aren’t just influencing new hires, they’re shifting how we engage with our existing teams too.” 

Related:Catersource State of the Industry 2024, Part 2: Operations Outlook

Many caterers have implemented training programs (41% of survey respondents said increasing staff training will be a focus in 2025) aimed at attracting and retaining talent, as well as an increased focus on employee well-being and work-life balance. Companies are seeking to create supportive work environments through strategies such as flexible scheduling, competitive wages, and opportunities for career advancement.  
“The challenge now is how we evolve our training and culture to meet these expectations while maintaining high standards for clients,” says Sanchez. “Retention is crucial, and it hinges on continuous training, mentorship, and a shared sense of core values. It’s about fostering accountability, ownership, and teamwork to navigate the shifting dynamics together. Success comes when teams are fully aligned and moving forward as one." 

This is where things like the “family meal” have become such an asset within the hospitality industry.  

According to Toast, “Family meals are a tradition in the restaurant industry, where the entire staff gathers together to share a meal before their shift starts. It can help boost morale and drive down employee turnover rates—as well as ensure that everyone is properly nourished and ready to provide the best service possible.”  

However, the guest experience should never exceed the employee experience. Ultimately, the well-being of an organization’s people shapes the quality of their work and the success of a company. In the fast-paced and demanding food industry, employees face numerous challenges in maintaining their health and well-being. Long working hours, physically demanding tasks, and exposure to high-stress levels can affect their mental and physical health. That’s why implementing a holistic well-being improvement program will quickly amount to a better work environment and satisfied customers. An employee wellness program can serve as a key differentiator and critical means of long-term staff retention. In fact, 79% of employees indicated that they would leave a job for one that supported their well-being, said Anthony Lambatos (Footers Catering) during a session on employee well-being during Catersource + The Special Event 2024 (see the winter issue of Catersource for Lambatos’ thoughts on employee burnout). 

“We need to start valuing people for more than the job that they do,” said Lambatos. “It’s not so much a work-life balance anymore, but a work-life blend. I don’t think ‘Personal Anthony’ stays behind and ‘Professional Anthony’ shows up and is ready for work—we need to hold space for both of them because they are equally important.” 

These programs aim to promote healthy lifestyles, prevent illness and injury, and improve employee morale and productivity. Studies have shown that 80% of employees at companies with robust health and wellness programs show increased employee engagement. 

“We have to take care of ourselves because we can’t pour from an empty cup,” said Lambatos. “If I'm not healthy, I can’t show up for anybody.” 

With a wellness program you’ll find your team is more engaged, reports higher job satisfaction, and even enjoys improved mental health. The results manifest in the form of a harmonious and productive work environment with a high retention rate and a better bottom line. 

Additionally, companies are exploring ways to keep employees engaged, such as flexible scheduling and clear career growth opportunities, to reduce turnover and foster loyalty. 

Ultimately, a workforce that doesn’t feel valued will quickly result in a poor guest experience.  

As we approach 2025, the industry’s response to labor shortages will likely include further investment in workforce development and automation. Educational partnerships and training programs may become more prevalent, aimed at attracting and retaining talent.  

“Throwing money at a problem is a crappy way to solve that problem,” said Lambatos, “especially when talking about company culture; culture takes time, it takes energy, and it takes intention.” 

*LUX Catering & Events is a proud member of the Leading Caterers of America, a consortium of the top catering and event planners throughout the United States and Canada.  

Check back next week for part 4 in the Catersource State of the Industry 2024 where we will take a look at sustainability.