Staff Shortages in the Hospitality Industry: Reasons and Solutions

“Waiter/waitress wanted,” “Chef wanted,” “Staff wanted” – rarely have we seen so many cafés, restaurants and bars with such notices on their doors as in recent months. After two years of the pandemic, everyday life is slowly returning to the hospitality industry, but there is one major problem: staff shortages.

This now applies to almost all industries, not just in Germany. While just a few years ago we were still complaining about the shortage of skilled workers, today we are already dealing with the phenomenon of a “lack of workers.” Finding good staff and retaining them within the company is currently the crucial question of all. 

While 2020 and 2021 were characterised by short-time work and the temporary closure of establishments due to the effects of coronavirus, particularly in the hospitality industry, a surplus of demand began in 2022. Today, the industry is still struggling with a shortage of staff. That is why, in this article, we at Shoes For Crews want to take a closer look at the reasons for staff shortages in the hospitality industry and highlight possible solutions.

Staff Shortages in the Hospitality Industry: Causes

As with so many things in life, there is not just one reason for staff shortages in the hospitality industry. In this particular case, two major problem areas can even be identified: the cyclical causes of staff shortages in the hospitality industry and the structural reasons. Below, we will briefly outline the various causes and then present possible approaches to solving them.

No. 1: The Coronavirus Pandemic

Hardly any sector has suffered as much during the pandemic as the hospitality industry: closures, lockdowns, fewer guests and mandatory masks. Many employees of cafés, restaurants and hotels were consequently placed on short-time work. The German Economic Institute found in a study that hardly any other occupational field saw as much staff leave as the hospitality industry. According to the German Economic Institute, 216,000 waiters, chefs and hotel employees found work elsewhere, most of them (34,800) in sales occupations.

No. 2: The Uncertain Economic Situation

After one crisis comes the next, it seems, because hardly had the coronavirus pandemic been overcome to some extent when the war in Ukraine began. The German economy is being affected by the war in Ukraine, the resulting price increases and the uncertain energy supply, as confirmed by the Federal Employment Agency’s analysis for July 2024. Jobseekers naturally feel this uncertainty too, and they see the hospitality industry, and therefore their job, as particularly vulnerable. This is another way in which staff shortages arise in the hospitality industry: in times of crisis, people who previously would have happily accepted a job as a waiter prefer to look for something secure, such as working as a supermarket cashier. 

No. 3: The Structural Causes

In addition to cyclical problems, there are of course also structural problems that lead to staff shortages in the hospitality industry.

These problem areas include, among others:

1. Low wages. Wages in the hospitality industry are still relatively low in comparison, especially when working hours and the physical demands of the work are taken into account. In times of inflation, this is a significant factor.
2. Working hours. Hospitality working hours have always been difficult to reconcile with private or family life. After all, the busiest times are when everyone else has time off.
3. Lack of qualifications. Fewer and fewer people are choosing formal training in the industry. As a result, there is a shortage of skilled workers in the hospitality and hotel sector. This too can lead to staff shortages.
4. Workplace accidents. Jobs such as chef or waiter remain particularly susceptible to workplace accidents, especially due to handling knives or hot pans. However, prolonged standing and the physical demands of the work also lead to musculoskeletal disorders. These are factors that can negatively influence jobseekers’ decisions. 

Staff Shortages in the Hospitality Industry: (Possible) Solutions

As individuals or as restaurant or bar owners, there is little we can do about cyclical causes. But that does not mean we cannot do anything to counter staff shortages in the hospitality industry! As individuals or individual businesses, we can find solutions specifically for the structural causes and make careers in the hospitality and hotel sector more attractive. 

One of the decisive points is definitely working hours. Companies in sectors affected by crises should therefore try to offer more flexible working-time arrangements or perhaps even childcare.

For example, it is advisable to rotate working hours so that the same employees, or all employees, do not always have to work weekends, but at most two weekends per month. The same applies to night and early shifts. 

We have already touched on this, but workplace safety is a problem that is easy to solve. Be the employer who equips employees with high-quality workwear and becomes known for excellent workplace safety. Show your current and future staff that their personal well-being matters to you! We would be happy to advise you on workplace safety and suitable footwear for each field of work. You can also learn more about the topic in our articles, such as “Workplace Safety in the Kitchen: What Should You Consider?” or “Workplace Hazards: How Can Accidents in the Hospitality Industry Be Prevented?” 

One final tip from us is to combat staff shortages in the hospitality industry by increasing employee motivation . This allows you to kill two birds with one stone: on the one hand, you retain your current staff and, on the other, you create a positive company image and attract new employees as a result. A genuine win-win situation. You can read about exactly how to motivate your employees in the article “How Do You Motivate Employees Without Money?”. We explain the potential of happy employees in “From Employee to Brand Ambassador”. 

Experiencing staff shortages in the hospitality industry first-hand can be frustrating, but at least you now know what you can actively do about it!