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How the EB-3 Visa Can Help Meet Labor Shortages in the Restaurant Industry

3.25 minute read
"In the coming decade, the restaurant industry in the United States is expected to grow exponentially. However, currently, the industry is plagued by labor shortages and high turnover rates. There is an unwillingness to keep a long-term job in the food industry among American workers. Also, the current workforce is aging and will soon have to retire from the industry."
Written by My Visa Source Team
Published on:  Nov 4, 2021
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In the coming decade, the restaurant industry in the United States is expected to grow exponentially. However, currently, the industry is plagued by labor shortages and high turnover rates. There is an unwillingness to keep a long-term job in the food industry among American workers. Also, the current workforce is aging and will soon have to retire from the industry. 

One of the ways US employers in the foodservice industry can fill these labor shortages is via the EB-3 Visa. The EB-3 Visa is an expedited way for foreign workers of skill levels to apply for US Permanent Residence.

Who Is Eligible for an EB-3 Visa?

To be eligible for the EB-3 Visa, applicants must be fluent in the English language and have at least a high school diploma and a college degree. The EB-3 Visa also allows the hiring of foreign workers for unskilled positions regardless of their skill level. It allows foreign workers to apply for US permanent residence provided they have an employment letter.  

Why Are Foreign Workers Required in the Restaurant Industry?

Foreign workers have always been the backbone of the food, service, and hospitality industries in the US. Before the pandemic, almost 25% of all food service workers and 31% of all cooks and chefs were foreign-born, according to the statistics from the New American Economy. 

Foreign workers across the country help small and big restaurants to operate. As the American economy recovers from the effects of the pandemic, the demand for foreign workers will also increase. The pandemic negatively impacted the restaurant industry. In 2020, their industry sales were about 240 million less than expected. The people employed by the restaurant industry were also 3.1 million less than expected at 12.5 million. 

The only way to ensure a steady stream of available workers to keep the revenue and operations going is by taking advantage of the EB-3 Visa program. According to the National Restaurant Association, the industry is expected to grow in the coming decade, meaning more employment opportunities for American and foreign workers. 

In the next decade, the restaurant industry is expected to add 1.8 million vacancies in the job market, resulting in a 14% increase in the workforce. American workers in the industry are expected to increase by 10% in the coming decade, therefore, labor shortages can only be met by foreign workers.

Why Does the Restaurant Industry Have Such High Turnover Rates?

According to a survey conducted by the National Business Research Institute, the restaurant industry has an average turnover rate of 35%. Such high turnover rates lead to reduced customer satisfaction and lost revenues. The cost of replacing a single worker in the restaurant industry is somewhere between 16% to 200% of the annual salary of an employee. Also, the time spent training the new employee will impact the dining experience of the customer. 

Also, working in the food and beverage industry is physically and mentally demanding. Workers have to work for long hours, and overtime is quite common. However, since no specialized skills or training are required to be hired in the restaurant industry, the workers in this industry are highly transferable and can move to different restaurants or sectors easily. 

All this translates into high turnover costs for the restaurant industry as they must take into account the increased workload, overtime payments, and the decline in customer satisfaction that comes with regular training of new employees. 

How Can the EB-3 Visa Help to Fill Labor Shortages in the Restaurant Industry?

The EB-3 Visa allows foreign workers at all skill levels to apply for US permanent residence. The EB-3 Visa will allow US employers to build long-term retention rates by offering foreign workers job security and helping them in obtaining US permanent residence. 

The Congress allocates 10,000 EB-3 Visas every year to fill labor shortages across different sectors. Applicants to the EB-3 Visa must be employed in a full-time unskilled position that requires less than 2 years of work experience. Applicants may apply for the EB-3 Visa when they have a valid job offer from a US employer.

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