Business Forum • 18 December, 2024 at 10:29 AM
The HoReCa industry in Romania is going through a series of transformations and is about to enter one of the most difficult periods of the year. The winter holiday of 2024 is expected to be the hardest in recent years for HoReCa, as the field faces an acute shortage of personnel and lower efficiency amid increased customer demand, labor migration, and fatigue of the existing team, warn some entrepreneurs in the industry. At the same time, to ensure their growth, hotels and restaurants must adapt to the increasingly high demands of Romanian customers.
Thus, according to representatives of Hotel Bordeaux and Restaurant Stage, only units with good planning, have increased the number of employees and offer bonuses to employees can avoid business problems with long-term effects.
In recent years, the HoReCa industry has been steadily losing Romanian employees, trying to compensate for the staff shortage of employees from other countries. But the sector is still affected. According to the latest data provided by a federation of industry employers, the labor shortage in HoReCa is 20%-25%, while in tourist cities, in season, it can reach 50%.
“Staff shortages are one of the biggest problems, especially during the holiday season. Restaurants, cafes and hotels are facing difficulties in finding and retaining employees, which affects the quality of services and the experience offered to customers. Without juggling resources intelligently to avoid a shortage, as an entrepreneur in HoReCa, the lack of employees, especially skilled employees, can even cost you your business. For our hotel and restaurant, located in Galati, we took measures in advance to not overwork employees and to have replacements during vacation periods and very busy ones, such as the days between Christmas and New Year's Eve. Entrepreneurs who do not make such decisions in advance and do not retain their employees through an honorable salary, bonuses, and other benefits can face losses in both people and sales. For many businesses in the industry, it is increasingly difficult to find experienced people, and those without experience often quickly get scared by the intense pace and demands of this demanding work. The major challenge is to find and train dedicated people, who understand that this profession requires not only skills, but also endurance and passion", explains Ana Savin, founder of the premium establishments Hotel Bordeaux and Restaurant Stage - Nice Dining.
In the two units, Ana Savin has 30 employees, aged between 18 and 70, recruited from Galați and the surrounding area. With a loyalty rate of over 90%, most employees have been working in the two units for an average of over 5 years.
Holidays amplify problems in HoReCa
The staffing crisis in HoReCa puts pressure on accommodation and restaurants, especially during holidays when the demand for this type of service is high. Thus, the holiday season becomes a test of strength for HoReCa. Increased demand, staff turnover, and fatigue of existing teams lead to a decrease in the quality of services. Overworked employees can lead to errors, and the lack of staff affects not only the serving time but also the quality of the dishes.
“Common solutions are early recruitment, employee bonuses, process automation, and temporary collaborations. Strategic planning and careful management can turn challenges into opportunities, ensuring employee and customer satisfaction and business success. Good planning is all the more important as it takes up to 6 months to bring in staff from Asia. We currently only have Romanian employees and we continue to look for local labor, having a very good recruitment process, which helps us find the right people between 2 weeks and a maximum of a month. For Romanians, the salary package matters a lot and the tip matters less, but also stability and financial security. That is why we offer both an attractive salary, merit recognition bonuses, a pleasant, stress-free, and motivating work environment, training, and other benefits, as well as a safe workplace, where their opinion counts, a place where they can evolve in the long term and from which they can retire", says Ana Savin, founder of the premium establishments Hotel Bordeaux and Restaurant Stage - Nice Dining.
Customer demands are increasing
In addition to the staff shortage, HoReCa businesses must also manage the increasingly high demands of customers. There is a clear evolution in the way food is prepared, presented and served, amid increasingly intense competition and growing customer demands. Specifically, customers have become more attentive to the quality and type of dishes, and the diversity of the offer has increased enormously, with restaurants offering various cuisines — from Mediterranean and Lebanese to vegan and vegetarian — to meet the public's increasingly high expectations. Restaurants must adapt quickly to remain relevant, but they are faced with problems such as a shortage of qualified personnel and rising operating costs.
Ana Savin, an entrepreneur with over 8 years of experience in HoReCa, emphasizes that without sufficient, well-trained and financially motivated employees, customer expectations cannot be met, which can lead to their loss and other problems in the business.
HoReCa in 2025: what entrepreneurs can do next year
For a solo restaurant, where external labor costs are not justified, the focus should be on recruiting and retaining local staff. Non-financial benefits, training programs, and an attractive work environment can help retain employees, recommends Ana Savin.
In the case of a restaurant chain, bringing in workers from outside becomes a viable solution to ensure stability, especially in regions where the local labor market is insufficient. However, this also involves additional costs, such as cultural integration and accommodation. In both cases, permanent recruitment campaigns in Romania remain essential to build a sustainable candidate base.
The staff shortage will continue in 2025, affected by labor migration and low youth interest in HoReCa. Thus, employer branding, career opportunities, and long-term strategies will be essential for success in 2025, points out Ana Savin.
In the long term, the HoReCa sector needs to focus on employer branding, creating clear career opportunities, and improving working conditions. Integrating an external workforce can be a viable solution for large chains, but it also involves additional costs, such as cultural integration and accommodation.
Opened in 2015, Hotel Bordeaux is one of the most important accommodation units in Galati, especially in the business segment. To date, the hotel has registered over 3,000 guests from Romania and abroad.
Stage Restaurant, located on the top floor of the Bordeaux Hotel, is the first nice-dining restaurant in Galați, a concept patented by entrepreneur Ana Savin, thus contributing to the development of the regional market of exclusive restaurants.