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Wages for Restaurant, Hotel and Hospitality Workers Cause Controversy, Business and Industry Trends Analysis

The restaurant sector has been one of the world’s largest providers of employment.  As of December 2023, America’s restaurants and various other food service and drinking establishments employed 12.4 million people, according to the Bureau of Labor Statistics.  (The National Restaurant Association typically estimates that number to be much larger, in the 15.7 million range for 2024.)  Likewise, hotels and similar businesses are very large employers, at about 1.5 million workers in the U.S. alone in late 2024.  
While the number of jobs provided in hospitality is exceptionally high under normal conditions, the wages tend to be among the lowest of any industry.  This tradition of low wages is due to many factors.  For example, restaurant work is an entry-level job for many people, with few formal skills required on the low end.  Next, the profit margin at typical restaurants is relatively low.  Restaurant customers are very price sensitive.  It is a significant challenge for restaurant operators to maintain profitability at all, leaving little room for substantial employee wages and benefits.


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