In January 2025, the U.S. job market saw a much-needed boost with the addition of 181,000 jobs, bringing the unemployment rate down to 4.3%, according to the Bureau of Labor Statistics. However, this is a sharp decline compared to the 1.46 million jobs added in 2024.
Interestingly, the food and beverage (F&B) sector has shown resilience. Food manufacturing has remained stable and even posted an 11.5% year-over-year increase. Job numbers in foodservice and retail have also seen improvement compared to last year.
Yet, behind these numbers lies an ongoing challenge for businesses—what some experts call an “engagement crisis.” Riley Westbrook, co-founder of Valor Coffee, emphasizes this point, suggesting that many workers are not avoiding work but are instead seeking better environments. He argues that employees are looking for firms where they are valued beyond just a number on a spreadsheet.
Even though the job market seems to be stabilizing, businesses still face hurdles. Luke Fryer, CEO of Harri, points out that rising wages, stricter regulations, and workforce turnover are exposing the vulnerabilities in traditional business models. Many in the restaurant industry still rely on manual processes, which can lead to inefficiencies.
Across the board, lower-wage employees want meaningful work. This shift in mindset is prompting companies to offer growth opportunities to retain talent. Recent data from a Monster report shows that only 43% of employees plan to job search this year, a significant drop from 93% the previous year. Furthermore, 75% of respondents intend to stay in their current roles through 2027.
This retention trend indicates that companies can support their long-term objectives by creating a positive work environment. Incorporating AI technologies can enhance employee satisfaction by streamlining scheduling, compliance, and other mundane tasks. Research from Legion highlights that managers can spend over 10 hours weekly on scheduling alone, making it a prime candidate for AI intervention.
Amid these changes, it’s essential to recognize that the economic landscape isn’t static. In the summer of 2025, Nik Modi from RBC Capital Markets warned of a “spending recession.” As we move into 2026, his insights into consumer behavior, driven by factors like price changes and new products, will be crucial for businesses in the F&B industry.
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