In this Weekly Wrap, we’re looking at hospitality job growth moderating in June, when people are buying breakfast, Starbucks’ plans to remodel, and more.
Job Growth Report
The Headline: “Restaurant job growth moderated in June”
The Source: Nation’s Restaurant News
What You Need to Know:
Eating and drinking establishments’ employment levels moderated, adding just 6,500 jobs last month, versus about 27,400 jobs added in total in April and May. The June moderation comes despite a busy seasonal push for jobs across the industry.
Simultaneously, average hourly earnings rose 0.3% for the third consecutive month, while wages are up 3.9% year-over-year.
The resilient unemployment rate and steady wage growth offer reason for optimism among restaurant operators who rely on consumers’ willingness to spend more.
According to the National Restaurant Association, the restaurant labor market has added about 72,000 jobs in the last four months, following losses in January and February, and is on pace to post growth this year. That said, the number of employees leaving their jobs has increased in recent months, as illustrated by the slowdown in net job growth.
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Employment at snack and nonalcoholic beverage bars – including coffee, doughnut, and ice cream shops – was 172,000 jobs (or 21%) above February 2020 readings. Employee counts at quick-service and fast-casual restaurants were 115,000 jobs (or 2.5%) above pre-pandemic levels.
In contrast, full-service restaurant employment levels remained 226,000 jobs (or 4%) below pre-pandemic readings, as of May 2025.
The association also reports uneven job growth across markets, with 20 states and Washington, D.C., below pre-pandemic readings, led by West Virginia and Massachusetts (both at -6%). Maryland (-5%), Vermont (-4%), and New Mexico (-4%) also continue to recover.
Meanwhile, Idaho (16%), Nevada (14%), Utah (14%), and Arizona (11%) are all well above pre-pandemic employment levels.
Our Take:
This falls in line with what we expected. Fast casual and snack spots are up (summer lovin’), and sit-down restaurant employment is still below pre-pandemic levels.
We feel that sit-down restaurants will continue to operate at the same level for the foreseeable future. Operators are running thinner and leaning into AI and other tech, all in an effort to keep their overall labor down. And I can’t blame them.
The uneven growth across different states was an unexpected turn, especially with the dramatic swings between those with positive growth (Idaho at +16 percent) and those with negative growth (Massachusetts and West Virginia at -6 percent). It’s tough to attribute any single factor to those numbers, with the exception of the D.C. Metro area, where operators are feeling the impact of government cutbacks and the loss of the tip credit a few years ago, forcing a wave of closures and other measures to combat rising costs.
When Consumers Are Buying Breakfast
The Headline: “The Way We Buy Breakfast Is Changing — Here’s What You Need to Know”
The Source: Food & Wine
What You Need to Know:
Despite fears over inflation, data shows that Americans are still buying breakfast, but the way we do that — and the price we pay — are changing.
According to the Q1 2025 Restaurant Trends Report from Toast, a restaurant point-of-sale and management software company, our breakfast habits have experienced some dramatic changes this year.
To start, Monday mornings are now one of the busiest times for breakfast in restaurants, with breakfast transactions on this day of the week up by 7% compared with the first quarter of last year. However, delivery is driving much of that growth: Breakfast orders placed through delivery platforms rose 15% year over year, while dine-in activity stayed flat.
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Toast’s pricing data aligns with trends in how people are eating away from home. According to the May 2025 Consumer Price Index, the cost of eating out rose 0.3% month over month and 3.8% compared with the same period last year. This is a slower growth rate than earlier in the inflation cycle, but it reflects the cumulative impact of menu changes and lingering operational costs. Simply put, even as grocery prices begin to cool, restaurant menus haven’t caught up.
Our Take:
The interesting takeaway here is the day of the week and where the purchases are happening: Mondays and delivery. Is it a reset from the weekend? A fresh start to the week? Could be either or something else completely.
Regardless of the “why,” it’s important to appreciate the when and how. If you’re a breakfast-focused establishment, are you operating with delivery? In our opinion, it’s a no-brainer, pending location. Obviously, if you’re in a rural community with no delivery options, it doesn’t make sense. But if you’re in a fairly populated area, it would be wise to offer it.
Yes, the apps will take a cut. Yes, it will probably annoy your staff. But other than purchasing some takeaway containers and bags, your expenses to execute are low. You already have the staff there, and the product in-house. To not do it, pending the market, is leaving money on the table.
Waffle House Egg Surcharge
The Headline: “Waffle House drops egg surcharge from its menu”
The Source: Nation’s Restaurant News
What You Need to Know:
Waffle House announced Wednesday that the casual-dining chain is dropping its temporary 50-cent surcharge for eggs from the menu, effective immediately.
The Norcross, Ga.-based casual-dining chain initially implemented the surcharge in February because of the egg shortage driven by the bird flu, also known as highly pathogenic avian influenza (HPIA).
At the time, Waffle House had decided to implement a surcharge rather than increase prices across the menu and clarified that the company will continue to use “grade A large eggs” in its menu items, despite the shortage, “as long as they are available.”
According to USDA data, the average national price of eggs peaked at above $8 a dozen toward the end of February this year and has since declined rapidly as the avian influenza outbreak improved. By the end of June, egg prices stabilized to around $2.54 per dozen, though since January caged chicken flocks have declined by 15% nationally.
Our Take:
This may seem like a minor update, but it carries weight. For key staples like eggs — and eggs are a pretty important staple — we’re starting to see alleviation from price pressures, giving bakers and breakfast spots across the country some relief. We hope this trend will extend to other products soon. By the end of the summer, we'll have a clearer picture when tariffs on certain items expire. We'll find out if wholesalers will absorb the remaining costs or pass them on to consumers
Starbucks Remodels to Get Customers to Stay
The Headline: “Starbucks wants its customers to stay awhile”
The Source: Restaurant Business Online
What You Need to Know:
The coffee shop chain recently unveiled its redesigned store in Bridgehampton, New York, among the first in a planned remodel of up to 1,000 locations in the next year.
The remodeled location is designed to bring the company back to its initial intent, as a shop where consumers can spend some time with friends, classmates or business associates or just get some work done.
It features cozier seating, including sofas and plush chairs and quiet corners, along with plants, a bookshelf and décor that give the shop a homier feel.
There are also more premium touches, such as glassware and ceramics, menus that reflect a coffeehouse experience, and numerous power outlets (“Too many to count,” a spokeswoman said).
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Starbucks was founded as a community gathering place, where customers could listen to music and read while enjoying a latte or an espresso. But in recent years it has shifted dramatically toward drive-thru and mobile orders, particularly since the pandemic
The chain removed 30,000 seats from its restaurants. It also replaced some stores with seating with locations dedicated only for takeout customers.
Our Take:
We can’t blame Starbucks for making the changes it did. The pandemic changed the landscape and it all made sense at the time.
But things have shifted again. Starbucks’ biggest competitors are spaces that similarly don’t offer seating, and they’ve been catching up. Despite the pandemic, plenty of people still like to sit at coffee shops and work. I do sometimes. I was stuck in a part of town with one client and didn’t have time to get to the office to take my next call, so where did I go? A coffee shop.
It’s true Starbucks has been hurting, but they’re strong enough to make changes across the board. While there is competition in coffee shops that have seats, some of the strongest comes from the mom-and-pop, single-unit coffee shop operators. The main advantage Starbucks has over the mom-and-pops? Capital.
To the small coffee shop operator, Starbucks is the corporate Goliath to their David, but people still like and root for the small operator. Small operators should take notice of what Starbucks is doing. While many of those operators despise the company, it does things deliberately and thoughtfully.
I would advise looking at the changes, considering their design, thinking about the comfort and usability of the space (if there is indeed space), and making the space appealing for those who want to stay and those who want takeout, because the quick serve part of the business is still important. And as always, work on the thing that keeps people coming back to smaller, independently owned operations: hospitality.