Staffing issues are the Achilles’ heel of fast-food franchises. With their fast-paced, customer-focused environment, recruiting and maintaining workers is an ongoing challenge for quick-service restaurants. The National Restaurant Association reports a staggering 62 percent of restaurateurs experience difficulty finding staff to meet demand, and 80 percent struggle to fill open positions. According to a report by Hourwork, only 54 percent of QSR employees reached 90 days before quitting their jobs.
Predictions show that the demand is only going to increase as 84 percent of Americans want to eat outside of their homes. QSRs can address labor shortages in various ways, but one of the best options for longer-term staff stability is the Employment-Based Immigration: Third Preference (EB-3) Visa which targets foreign workers.
Why There Are Staff Shortages in the Food Service Industry
As of July 2024, restaurant staffing is 4 percent below the pre-pandemic levels of early 2020. The sector has one of the highest turnover rates of all industries at 6.1 percent, compared to the national average of 4.9 percent.
Intense customer interactions, irregular hours, and the physicality of the fast-food environment can lead to employee burnout. The high-stress atmosphere combined with low wages, lack of benefits, such as health insurance and paid time off, and limited opportunities for advancement contribute to the industry’s high churn rate.
An aging workforce coupled with a smaller generation of young workers is exacerbating the overall labor market, making the hunt for employees a challenge, especially for QSRs.
One solution to the staffing problem is looking for talent beyond the borders.
How Restaurants Can Address Labor Shortage With the EB3 Visa
There are various strategies QSRs can implement to counter worker shortages, ranging from higher pay rates to more flexible work hours, but one of the best long-term solutions is using immigration programs to access and import foreign talent.
Hiring workers from abroad to fill positions is not a new tactic for US employers, as over 30.9 million foreign workers make up approximately 19 percent of the labor force in the United States. Various visa categories can be used to gain access to international talent, one of which is the EB-3 Visa, applicable to workers who don’t qualify for visas in the EB-1 (extraordinary talent such as researchers or professors) or EB-2 (professional holding an advanced degree) categories. The EB-3 program was established with the Immigration and Nationalization Act of 1990 to assist U.S. employers in filing employment-based green cards for prospective employees.
The EB-3 allows restaurateurs and other employers to sponsor foreign workers of all skill levels to work in the United States, granting them permanent jobs and residency via a Green Card. This visa is renewable every ten years and includes the option for the applicant to bring his or her spouse and dependent children under 21.
Benefits of the EB-3 Visa
High employee churn rates and a small labor pool are ongoing challenges for the QSR industry. The estimated cost of losing a worker is calculated at two to three times their salary. Factor in the costs of productivity loss, hiring, and training, and each new employee can add between $3000 to $5000 to operating expenses. With a churn rate of new hires every 90 days on average, those razor-thin profit margins of a QSR become practically transparent.
One of the biggest benefits of hiring EB-3 workers is their visa statuses are linked to their jobs, committing them to long-term employment. Such loyalty translates to a stable workforce with low turnover rates, resulting in higher profits and more satisfied customers.
Eligibility for an EB-3 Visa
Requirements for the EB-3 visa are less stringent than other visa categories. Applicants must be fluent in English and have a diploma. Additionally, workers should have a permanent labor certification (employment letter) and be assured a permanent, full-time job offer. F-1 Student Visa Holders, residing in the USA or abroad, are also eligible.
EB-3 Application Process
The process begins with the employer preparing the position details and minimum requirements, and then filing the prevailing wage request. Next, they must advertise the position to US workers for two months to prove there are no qualified local workers.
As part of the application process, the employer must demonstrate an ability to pay and continue paying the offered wage as of the priority date. An annual report, federal income tax return, or audited financial statement can help demonstrate the continuing wage-paying ability.
The employer selects an applicant and makes an offer before filing the PERM Labor Certification. Filing the I-140 Immigrant Petition for the Alien Worker follows, the applicant receives their EB-3 Visa, and before long, they’re clocking in for their first shift.
Wrapping it up
A full roster of reliable staff members is the key ingredient to a QSR’s success and the EB-3 Visa is the secret salsa with a blend of workers who are driven, loyal, and committed to being part of their employer’s long-term success.
John E. Dorer is an accomplished Global Mobility Executive with over 23 years of hands-on experience in the field. As the CEO of eb3.work he leads an expert team of immigration attorneys and recruiters committed to solving the pervasive problem of entry-level labor shortages through employer-sponsored green card programs, particularly the EB-3 visa program.
