Economic Uncertainty in the Restaurant Industry
Economic uncertainty has plagued Houston’s restaurant industry since the COVID-19 pandemic. Inflation and tariffs have only compounded the strain, leading to a new wave of restaurant closures, lagging morale, and questions about how to support staff. Restaurateurs are saying discussions surrounding how to help their employees are more critical than ever.
Top Concerns for Restaurateurs
According to the James Beard Foundation’s 2025 Independent Restaurant Industry report, hiring and rising costs are the top concerns for restaurateurs. A separate study from Workforce Solutions reveals that in July, Houston’s leisure and hospitality industry lost 600 jobs—most in food and accommodation services—making it the city’s sixth-largest declining sector. With more restaurant closings and a struggling industry, the number of people who are unemployed and looking for jobs could rise, and restaurant owners are seeking ways to retain and mentor their staff for the long term.
Supporting Employees
Cherif Mbodji, partner and director of operations at Bludorn and its sister restaurants, says it’s essential to support employees, both professionally and emotionally, particularly during challenging times. Bludorn has made health care a priority since its inception, and its commitment to employees has only grown over the years. Benefits now include 401(k) options and a health benefits savings account that lets employees put unused funds toward purchases such as a car or a home.
Health Insurance and Retirement Plans
Brennan’s of Houston co-propietor Alex Brennan-Martin says health insurance has been offered at his family’s restaurant for as long as he can remember. The Creole restaurant also provides a retirement plan, paid vacations, and time off for employees, even for those who work off tips. All employees also receive a week of paid vacation early on and can work their way up to four weeks. Brennan-Martin estimates that about 35 to 40 percent of the restaurant’s staff is already at that level.
Competitive Salaries and Living Wages
Brennan-Martin adds that offering a competitive salary and living wages are crucial, especially as the cost of living continues to rise, and more restaurants are working toward this goal to retain staff. The Beard Foundation’s recent study revealed that 92 percent of its respondents (restaurant owners and professionals) increased staff wages in 2024, with a majority reporting that they boosted pay by more than 10 percent.
Flexible Working Hours and Career Advancement
Flexible working hours for employees, who often have outside responsibilities and families, also seem to be a draw. Although some hours are nonnegotiable, H-Town Restaurant Group strives to maintain a work-life balance for its team, which includes employees covering shifts for their colleagues when important events or emergencies arise. Local hospitality groups have also been working to provide engaging and educational experiences for staff, along with opportunities for career advancement and growth.
Retaining Talent
Establishments that offer career advancements are 3.5 times more likely to retain talent and 1.2 times more likely to find staff to hire, according to the Beard study. "When you have people who are trained and ready, when the opportunity comes, you can promote them and support them," Vaught says. "That’s how you keep the team strong. Hire people who have a thirst for learning."
Appreciation and Respect
For some employees, the most basic benefit comes down to appreciation and respect. At H-Town Group, Vaught says they’ve recently shown staff appreciation in the form of champagne-fueled celebrations with thoughtful speeches to acknowledge career milestones. Staff also receive special coins as keepsakes, offered in colors that correspond with the number of years they’ve worked with the company.
Conclusion
The restaurant industry may be struggling, but Houston chefs and owners remain fully committed to creating a work environment that’s both inviting and safe. By offering competitive salaries, health insurance, retirement plans, and opportunities for career advancement, restaurants can retain talent and support their employees during challenging times. As Mbodji says, "Hospitality starts from within… [It] is extended to people who are the closest to you before it gets to the people who are further from you."
