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UNDERSTANDING THE MANPOWER IN JORDANIAN RESTAURANTS

Presented to: JRA & SIYAHA

September 2013

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REASONS BEHIND RECRUITING LOCALS VS. FOREIGNERS

WHO COSTS MORE? RECRUITING LOCALS OR FOREIGNERS

AGENDA

CURRENT & FUTURE STATUS OF THIS INDUSTRY

IS EFFECTIVE TRAINING NEEDED?

THE INCAPABILITY OF LOCAL STAFF.

RECRUITING METHODS

BENEFITS GIVEN TO LOCALS VS. FOREIGNERS

LOCAL HOSPITALITY GRADUATE

SAMPLE PROFILE

LOCAL VS. FOREIGNER STAFF

EXECUTIVE SUMMARY

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STUDY BACKGROUND

The Jordan Restaurant Association (JRA) was created by the Ministry of Tourism & Antiquities and empowered by law no. (47) in 2002 to represent and serve the growing restaurant industry in Jordan.
Recently the Ministry of Tourism & Antiquities issued a law that encourages restaurant owners to replace all foreigners staff with Jordanians.
Therefore, JRA wants to assess the status of this industry in Jordan.
To this end, Nielsen conducted this project using a quantitative approach, face-to-face interviews were taking place using a structured questionnaire.
At the beginning there was a high rejection rate but in cooperation with JRA field work went smoother.
Unfortunately Fast Food 3 stars could not been interviewed. This category contains 2 venues only & reason is high rejection & unavailability.

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NOTES FOR READING THE REPORT

All figures presented here are in percentages, unless stated otherwise and written on the chart: “Absolute Numbers”
Question numbers along with it’s text as in the questionnaire are listed at the bottom left of the slide.
All the answers & numbers in this report is based on the say of the respondents (the sample)
Should client be interested in any additional analysis beyond what is presented in this report, client is to get back within 1 week of the delivery of this presentation for the extra analysis to be processed and done.

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EXECUTIVE SUMMARY

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The findings of this survey supports the following points:

Foreigner staff represent around 31% of all staff of the targeted sample.

Foreigner staff allocates the positions which needs wide experience along with skills (such as: head chef, chef assistant, sous chef, etc.), & the low level positions that Locals do not apply for since the culture of shame they suffer & they can not work under such kind of pressure (such as: Housekeeping, Argela, Kitchen steward employee, etc.)
The dominant nationality of the foreigner staff in this sample is “Egyptian” .

Male is the dominant gender in all the positions in this industry that locals hold (regarding this sample), this is a result because of:

Unavailability of female worker to apply.
Culture of shame, which is the obstacle not for females, it is also for males to be part of this industry.
Nature of the work & troubles of it that females can not handle. In addition to that girls can not stay working late.

Venues that employ foreigners disclosed the following reasons behind this:

Foreigners accept lower wage comparing to the load of work they would be under. Talking about wage over here not the total cost of the foreigners.
Foreigners are humble; accept any kind of task to do even if it is considered a lower one.

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Stability, foreigners are committed to their work, & they do consider it as a career. Unlike the locals who do not have a commitment towards their jobs in this industry, plus what locals suffer from culture of shame that do in many times represent a driver to let them leave their jobs.
They are Patient; capable to work under pressure & for long working hours. Unlike locals.
Foreigners are highly skilled related to the positions that need special skills.

There is around 24% of the sample recruiting 100% locals only. The major players in this area are fast food category& other locations category which include fast food restaurants also).
There are 2 venues that recruit foreigners only out of the fear of recruiting locals who do not have loyalty towards their jobs along the culture of shame they have. So, these 2 venues prefer & do employ foreigners only since they do not have to employee new staff from now & then & they won’t be exposed to the risk of losing the quality of service they have.
More than the half of the respondents think & disclose that recruiting foreigners costs more than recruiting locals. Although there is around 77% of the same sample recruiting foreigners. Reasons behind this belief:

Foreigners need more expenses to be paid, such as: housing, transportation. In other words they are more expensive than locals.

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Higher salaries they ask for, for some of the positions (such as head chef, etc.)

Shortage is witnessed in two types of positions:

Ones which need high skills .
Others that represent Low level positions.
Reasons behind this are:

Lack of local employees
Lack of experience in the market
Culture of shame
High turnover of local staff

Around half of the respondents are planning to get more employees within the upcoming 3 years, and they prefer to employ Jordanian but so many obstacles face them, such as:

Culture of shame Locals have.
Unavailability of local workers, & lack of their commitments.
For the ones who prefer & need foreigners: Difficulties they face to get the permits, in addition to other problems they face from ministry of labor side.

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The industry suffers turnover of the staff. Some of the reasons behind this are:

Staff leave because of the availability of better jobs abroad (outside Jordan).
Staff leave in order to finish their university degrees. That gives an idea that they do not take these jobs as a career.
Staff don’t have any kind of commitment towards their jobs.
Around half of the respondents believe that there is a need for an effective training. And they think all the staff need all kind of training, most especially: customer service, etc.
Part of the respondents think that local staff are incapable of filling certain positions because of the following:

Culture of shame
Local don’t accept to work in certain positions for different personnel reasons.
Locals don’t have the will to work under pressure.
Less experience locals have in some areas.
Unavailability of local workers
Irresponsible towards the work Locals are doing

Majority of the venues rely on word of mouth to recruit new staff, newspapers, & internet. Sometimes they fail in the final stages of recruiting because of:

Figuring out after the interview that the potential staff is not that experienced.
The potential staff turns down the offer because it is low paid - from staff own perspective-.
Potential successful staff is foreigner hence because of the permit difficulties the recruiting process fails.

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Around 71% of the sample thinks that both locals & foreigners get the same benefits from the management.
Majority of the sample do not have local hospitality graduate working at their venues. As for the ones who have local hospitality graduates, around 6% out of them are not satisfied because the following reasons:

Local hospitality graduate are not qualified.
Low level of training these local graduate were exposed to(Vocational Training).
No practical experience enough local graduates hold(internship).
Since salary is not that high –from their own perspective-, the graduates staff themselves don't take the job seriously.
Unavailability of these local hospitality graduate.

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SAMPLE PROFILE

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SAMPLE PROFILE OF RESPONDENTS AT THE VENUES

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SAMPLE PROFILE�RESPONDENTS(1)

Base: all respondents 345

Restaurants

Base: all respondents 345

Years of Experience

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SAMPLE PROFILE�RESPONDENTS(2)

Restaurants

Base: all respondents 345

Occupation of respondent	#
Base	345*
Owner	87*
HR Staff	28*
Venue Manager	224*
Head Chef	1*
Supervisor	1*
Financial manager	1*
Manager Assistant	2*
Accountant	1*

*Absolute Number

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SAMPLE PROFILE OF VENUES

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SAMPLE PROFILE�TYPE OF BUSINESS(1)

Base: all respondents 345 at the 345 venues

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SAMPLE PROFILE�TYPE OF BUSINESS(2)

Fast Food

Base: all respondents at the Fast Food category 45

Coffee shops

Base: all respondents at the Coffee shop Category 81

Restaurants

Base: all respondents at the restaurant Category 150

Type of business	Sample
Base	345*
Restaurants (4, 3, 2& 1 stars)	150*
Coffee shop(3, 2, 1 stars)	81*
Entertainment City	14*
Fast Food(3, 2, 1 stars)	45*
Others Location**	55*

Absolute Number
** Outside Amman

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SAMPLE PROFILE�NOTES TO BE CONSIDERED

Kindly while going through the report consider the following points:

Sample size = 345 respondents at different venues; including the following categories(Restaurants 150, Coffee shops 81, Entertainment Cities 14, Fast Food 45, Other Locations 55).
In these 345 venues we have 7,096 staff (in total), including 2,169 foreigner staff (which 31%of total employees) & 4,927 Local staff (which 69%of total employees); distributed as follows:

Category		# of venues	# of all staff	Locals	Foreigners
Restaurant Category	Restaurant 4 stars	20	1,019	615	404
	Restaurant 3 stars	46	1,312	926	386
	Restaurant 2 stars	55	1,226	728	498
	Restaurant 1 star	29	380	225	155
Total			3,937	2,494	1443
Coffee Shop Category	Coffee shops 3 stars	6	172	135	37
	Coffee shops 2 stars	40	454	288	166
	Coffee shops 1 star	35	332	187	145
Total			958	610	348
Entertainment Cities		14	433	414	19
Fast Food Category	Fast Food 3 stars	1	36	35	1
	Fast Food 2 stars	14	406	340	66
	Fast Food 1 star	30	268	225	43
Total			710	600	110
Other Locations		55	1,058	809	249

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General Shopping Behavior

LOCAL VS. FOREIGNER STAFF

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STAFF IN RESTAURANTS CATEGORY(1)

Within the 345 venues have been targeted in this project there is 7,096 employees. 3,937 employees in the “Restaurant Category”.
Out of these 3,937 there is 2,494 local staff & 1,443 foreign staff.
The below table details how these figures are distributed:

Category		# of all staff (Abs Value)	% of total staff in this category	Locals (Abs Values)	% of total local staff in this category	Foreigners (Abs values)	% of total foreigner staff in this category
Restaurant Category	Restaurant 4 stars	1,019	26	615	25	404	28
	Restaurant 3 stars	1,312	33	926	37	386	27
	Restaurant 2 stars	1,226	31	728	29	498	35
	Restaurant 1 star	380	10	225	9	155	11
Total		3,937		2,494		1,443

Ref. S1.a�How many staff do you have in the venue?

Ref. S1.b�How many of the (answer of S1.a)are foreigners?

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STAFF IN RESTAURANTS CATEGORY(2)

As shown below, in all the restaurant –regardless how many stars they hold- locals are more than foreigners.

Category		# of all staff (Abs Value)	Locals (Abs Values)	% of (locals/all staff in each sub-category)	Foreigners (Abs values)	% of (foreigners/all staff in each sub-category)
Restaurant Category	Restaurant 4 stars	1,019	615	60	404	40
	Restaurant 3 stars	1,312	926	71	386	29
	Restaurant 2 stars	1,226	728	59	498	41
	Restaurant 1 star	380	225	59	155	41
Total		3,843	2,424		1,419

Ref. S1.a�How many staff do you have in the venue?

Ref. S1.b�How many of the (answer of S1.a)are foreigners?

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STAFF IN COFFEE SHOP CATEGORY(1)

Within the 345 venues have been targeted in this project there is 7,096 employees. 958 employees in the “Coffee shop Category”.
Out of these 958 there is 610 local staff & 348 foreign staff.
The below table details how these figures are distributed:

Ref. S1.a�How many staff do you have in the venue?

Ref. S1.b�How many of the (answer of S1.a)are foreigners?

Category		# of all staff	% of total staff in this category	Locals	% of total local staff in this category	Foreigners	% of total local staff in this category
Coffee Shop Category	Coffee shops 3 stars	172	18	135	22	37	11
	Coffee shops 2 stars	454	47	288	47	166	48
	Coffee shops 1 star	332	35	187	31	145	42
Total		958		610		348

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STAFF IN COFFEE SHOP CATEGORY(2)

All the category have more % of local staff than foreigners.

Ref. S1.a�How many staff do you have in the venue?

Ref. S1.b�How many of the (answer of S1.a)are foreigners?

Category		# of all staff	Locals	% of (locals/all staff in each sub-category)	Foreigners (Abs values)	% of (foreigners/all staff in each sub-category)
Coffee Shop Category	Coffee shops 3 stars	172	135	78	37	22
	Coffee shops 2 stars	454	288	63	166	37
	Coffee shops 1 star	332	187	56	145	44
Total		958	610		348

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STAFF IN ENTERTAINMENT CITIES CATEGORY

Within the 345 venues have been targeted in this project there is 7,096 employees. 433 employees in the “Entertainment Cities Category”.
Out of these 433 there is 414 local staff & 19 foreign staff.
96% of this category’s staff are locals where foreigners represent only 4% of all the staff.

Ref. S1.a�How many staff do you have in the venue?

Ref. S1.b�How many of the (answer of S1.a)are foreigners?

Category	# of all staff	Locals	% 0f (locals/all staff)	Foreigners	% of (foreigners /all staff)
Entertainment Cities	433	414 locals	96	19 foreigners	4

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STAFF IN FAST FOOD CATEGORY(1)

Within the 345 venues have been targeted in this project there is 7,096 employees. 710 employees in the “Fast Food Category”.
Out of these 710 there is 600 local staff & 110 foreign staff.
The below table details how these figures are distributed:

Ref. S1.a�How many staff do you have in the venue?

Ref. S1.b�How many of the (answer of S1.a)are foreigners?

Category		# of all staff	% of total staff in this category	Locals	% of total local staff in this category	Foreigners	% of total local staff in this category
Fast Food Category	Fast Food 3 stars	36	5	35	6	1	1
	Fast Food 2 stars	406	57	340	57	66	60
	Fast Food 1 star	268	38	225	38	43	39
Total		710		600		110

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STAFF IN FAST FOOD CATEGORY(2)

As shown below, Fast food 2 stars has 84% of total staff of this sub-category locals where 16% foreigners, etc.

Ref. S1.a�How many staff do you have in the venue?

Ref. S1.b�How many of the (answer of S1.a)are foreigners?

Category		# of all staff	Locals	% of (locals/all staff in each sub-category)	Foreigners (Abs values)	% of (foreigners/all staff in each sub-category)
Fast Food Category	Fast Food 3 stars	36	35	97	1	3
	Fast Food 2 stars	406	340	84	66	16
	Fast Food 1 star	268	225	84	43	16
Total		710	600		110

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STAFF IN OTHER LOCATION CATEGORY

Within the 345 venues have been targeted in this project there is 7,096 employees. 1,058 employees in the “Other Location Category”.
Out of these 1,0578 there is 809 local staff & 249 foreign staff.
76% of all the staff over here are locals, where 24% are foreigners.

Ref. S1.a�How many staff do you have in the venue?

Ref. S1.b�How many of the (answer of S1.a)are foreigners?

Category	# of all staff	Locals	% of (locals/ all staff)	Foreigners	% of (foreigners/all staff)
Other Locations	1,058	809	76	249	24

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INFO ABOUT THE LOCAL STAFF

Ref. S1.c�Kindly list the local employees’ information required below as groups

*Absolute Number

	Total	Restaurant Category				Coffee Shops Category			Entertainment City	Fast Food Category			Other Locations
	Total	4 stars	3 stars	2 stars	1 star	3 stars	2 stars	1 star	Entertainment City	3 stars	2 stars	1 star	Other Locations
Base: Total number of staff	4927*	615*	926*	728*	225*	135*	288*	187*	414*	35*	340*	225*	809*
Waiter/Waitress	18	16	28	17	7	31	30	24	5	9	8	7	17
Chef assistant	7	5	12	8	7	7	3		3		6	2	6
Kitchen steward employee	7	8	2	7	4	22	10	4	1		17	9	10
Food preparation Assistant	7	10	5	5	11	5	1	1	1	14	5	35	8
Restaurant Manager	6	3	2	6	8	1	10	7	6		6	15	7
Accountant	6	3		6	11		6	5	12	14	6	16	6
Housekeeping	6	4	7	5	8	3	2	7
Head Chef	5	3	7	5	10	3	3	1	2	3	6	1	5
Busboy	5	6	14	2	4		3	6	4	9	1		1

At the total level 18% of all local staff represent “waiter/waitress” staff, 7% “Chef Assistant”, 7% “Kitchen Steward employees”, & 7% “Food preparation Assistant”.

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INFO ABOUT THE LOCAL STAFF

Ref. S1.c�Kindly list the local employees’ information required below as groups

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INFO ABOUT THE LOCAL STAFF

Ref. S1.c�Kindly list the local employees’ information required below as groups

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INFO ABOUT THE LOCAL STAFF

Ref. S1.c�Kindly list the local employees’ information required below as groups

As shown in the previous slides males is the dominant local gender in all of the position. However we see that accountant –which is a desk job- has a higher % of females than other positions.

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WHY MALES IS THE DOMINANT GENDER IN THIS SECTOR?

Ref. S1.f�Why males are more than females?

Base: Abs values , # of males more than females

Head chef: 154

Chef assistant: 122

Food preparation Assis: 98

Kitchen steward employee: 105

Restaurant Manager: 201

Housekeeping.: 102

Waiter/waitress: 181

Busboy: 50

Accountant: 136

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INFO ABOUT THE FOREIGN STAFF

Ref. S1.g�Kindly list the Foreign employees’ information required below.

	Total	Restaurant Category				Coffee Shops Category			Entertainment City	Fast Food Category			Other Locations
	Total	4 stars	3 stars	2 stars	1 star	3 stars	2 stars	1 star	Entertainment City	3 stars	2 tars	1 star	Other Locations
Base: No. of foreign staff	2169*	404*	386*	498*	155*	37*	166*	145*	19*	1*	66*	43*	249*
Housekeeping	23	26	37	21	14	27	14	28	53	100	12	14	16
Waiter/Waitress	20	12	20	23	12	19	39	15			24	2	22
Kitchen steward employee	12	15	9	13	4	24	13	5	21		27	12	10
Hubbly bubbly boy “Argela”	8	2	6	12	2	19	7	30	11				6
Food preparation Assistant	7	14	1	2	23	3	4				9	53	6
Chief assistant	6	6	8	4	13	3	4	1				2	8
Busboy	4	2	9		8		2	5					7
Head Chef	3	3	6	1	5		3				9	2	6
Sous Chef	3	5		7	2			6			3
Captain/Floor manager	3	5		3	1	5	1	2			2	2	9

* Absolute values

23% of the 2,169 foreigner staff are “housekeeping” staff, 20% are “waiter/waitress”, etc..

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Info about the Foreign Staff

Gender

Ref. S1.g�Kindly list the Foreign employees’ information required below.

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Info about the Foreign Staff

Gender

Ref. S1.g�Kindly list the Foreign employees’ information required below.

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Info about the Foreign Staff

Gender

Ref. S1.g�Kindly list the Foreign employees’ information required below.

As shown in the previous slides males is also the dominant foreigner gender in all of the positions.

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Info about the Foreign Staff

Nationality

Ref. S1.g�Kindly list the Foreign employees’ information required below.

47% of the foreigner head chefs are “Egyptian” while at the same time 61% of sous chef are “Egyptian”

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Ref. S1.g�Kindly list the Foreign employees’ information required below.

Info about the Foreign Staff

Nationality

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Ref. S1.g�Kindly list the Foreign employees’ information required below.

Info about the Foreign Staff

Nationality

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Ref. S1.g�Kindly list the Foreign employees’ information required below.

Info about the Foreign Staff

Nationality

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Ref. S1.g�Kindly list the Foreign employees’ information required below.

As shown in the previous charts the Egyptian nationality is the dominant nationalities for all the mentioned positions.

Info about the Foreign Staff

Nationality

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Local Vs. Foreign Staff (for some positions)

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Local Vs. Foreign Staff (for some positions)

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Local Vs. Foreign Staff (for some positions)

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General Shopping Behavior

REASONS BEHIND RECRUITING LOCALS VS. FOREIGNERS

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IF THERE IS FOREIGNER STAFF AT THE VENUE

Ref. S.2a�What are the reasons behind recruiting foreigner at your venue

Within the 345 venues had been interviewed there is 264 of them having foreigner staff in their venues. As shown in the below table, Restaurants 2 stars is the one includes the largest stake of them, followed by Restaurant 3 stars, Other Locations, Coffee shops 1 & 2 star, etc.
In total, almost half of the respondents disclosed that the reasons behind recruiting foreigners are: “foreigners accept lower wages for long working hours”, “foreigner are humble, they accept any task/position they are assigned to even if it's considered a lower one”, & “foreigners has the attribute of Stability, they are committed to their work”.

Reasons behind recruiting Foreigners	Total	Restaurant Category				Coffee shops			Entertainment City	Fast Food			Other Locations
		4 stars	3 stars	2 stars	1 star	Coffee shops
						3 stars	2 stars	1 star
						3 stars	2 stars	1 star		3 stars	S tars	1 star
Base(venues which has foreigner staff)	264*	20*	38*	52*	21*	6*	30*	31*	5*	1*	12*	16*	32*
Accept lower wages for long working hours	53	55	55	44	76		17	84	60		25	75	63
Humble, they accept any task/position they are assigned to even if it's considered a lower one	48	45	32	52	81	33	27	42	40	100	42	44	78
Stability, they are committed to their work	47	45	58	50	38	50	43	68	20	100		38	41
Patient, capable to work under pressure & for long working hour	43	35	26	48	38	33	30	45	20		75	63	56
Highly Skilled	37	30	34	29	52	33	37	87	20		17	19	19
The local people don't like to work hard and there's no commitment to the work	8		16	4	29					100	8	6	16
There's no local people want to work	8		5	21			17	10
Passionate, they love what they are doing	6	10	5	10			3	13					3
There's no stability for local people	5		3	6	5		3		20			19	6
They don't have culture of shame	3	5	13						40				3
Committed to working	3		3	8				3					6

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IF 100% OF THE STAFF IS LOCAL

Ref. S.2b�What are the reasons behind recruiting Locals ONLY

Within the 345 venues had been interviewed there is 81 of them having local staff only in their venues. As shown in the below table, Coffee shops 3 stars category does have foreigner staff, it is not 100% having only locals. Fast Food 1 star & other location category are the ones containing the largest stake of them.
In total, the majority address that the reason behind recruiting locals only is because of the goal to encourage the local employment.

Reasons behind recruiting locals ONLY	Total	Restaurant Category				Coffee shops			Entertainment City	Fast Food			Other Locations
		4 stars	3 stars	2 stars	1 star	Coffee shops
						3 stars	2 stars	1 star
						3 stars	2 stars	1 star		3 stars	2 stars	1 star
Base(venues which has LOCAL staff only)	81*	0*	8*	3*	8*	0*	10*	4*	9*	0*	2*	14*	23*
Encourage local employment	33		50		13		20	25	33		50	50	35
Highly Skilled	20		50	33	13		50	25	33			7
Polite in dealing with the customers	11		50	33	13		50	25	33			7
Polite in dealing with the customers	11		25				10		22			21	4
Difficulty permits of foreign workers	11		13		38		10						17
Humble, they accept any task/position they are assigned to even if it's considered a lower one	10		38		13			25				14	4
Rejection of the Ministry of tourism to get expatriate workers	9			33	13		10		11				13
Patient, capable to work under pressure & for long working hour	7		38		13							7	4
Accept lower wages for long working hours	7		38		13		10					7
Stability, they are committed to their work	7			33			10	25				7	9
High cost to the expatriate workers	6				13				11				13

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IF 100% OF THE STAFF IS FOREIGNER

Ref. S.2c�All of your employees are foreigners, why don’t you recruit locals?

Only 2 venues out of the 345 ones recruit only foreigners.
Fast Food 2 starts made it clear that the reason behind this scenario is: local staff don’t commit to their work in this industry. Whereas Coffee shops 2 stars said the same in addition to what locals suffers because of the culture of shame.

2 venues have only foreigner staff

1 coffee shop

1 Fast Food

Non-commitment of local staff

& culture of shame

Non-commitment of local staff

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General Shopping Behavior

WHO COSTS MORE? RECRUITING LOCALS OR FOREIGNERS

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WHO COSTS MORE TO RECRUIT? LOCAL OR FOREIGNER

Ref. S2.d�In your opinion, who do you think it costs more: hiring a foreigner or a local staff?

In total, 54% of the sample thinks that recruiting foreigners costs more, whereas 40% thinks the opposite. 6% of the sample thinks both costs the same. Despite this fact we have 264 venues recruiting foreigners due to the previously mentioned reasons.
Restaurant Category: 4 stars, 3 stars & 1 star: majority thinks that foreigner costs more- although they are the ones who recruits foreigners-, while 2 stars majority think that Local costs more. Coffee shop Category: 3 & 2 stars majority thinks that foreigner costs more while 1 star think the opposite. Fast Food & Other location majority thinks that foreigner costs more. At the same time Entertainment city category 50% thinks foreigner & the other 50% think that Local costs more.

Base: absolute value= Total:345

Res 4 stars: 20

Res 3 stars: 46

Res 2 stars:55

Res 1 star:29

Coffee shop 3 stars:6

Coffee shop 2 stars:40

Coffee shop 1 star:35

Entertainment City:14

Fast Food 3 stars:1

Fast Food 2 stars:14

Fast Food 1 star:30

Other Location:55

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Why Locals costs more?

Ref. S2.e�Why hiring a local costs more than hiring a foreigner?

138 respondents out of the 345 answered with “local costs more”.
In total, 80% stated that the reason behind their thoughts is that locals ask for high salary compared to their work experience.

Base: absolute value= Total:138

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Why Locals costs more?

Ref. S2.e�Why hiring a local costs more than hiring a foreigner?

138 respondents out of the 345 answered with “local costs more”. The following box highlight the number for each category that did the same.
Respondents at Coffee shops 3 stars: all of them the 2 respondents disclosed the same reason which is “they ask for high salary compared with their work experience”, same as Fast Food 2 stars.

Base: absolute value= Total:138 ones who said locals cost more

Res 4 stars: 9

Res 3 stars: 20

Res 2 stars:29

Res 1 star:6

Coffee shop 3 stars:2

Coffee shop 2 stars:10

Coffee shop 1 star:26

Entertainment City:7

Fast Food 3 stars:0

Fast Food 2 stars:2

Fast Food 1 star:13

Other Location:14

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186 respondents out of the 345 answered with “foreigner costs more”.
99% out of the total (186 respondents who said foreigners cost more) stated that the reason behind their thoughts is that Foreigners need more expenses to be paid, such as: housing, transportation. In other words they are more expensive than locals

Base: absolute value= Total:186 who answered with foreigners cost more than locals

Why Foreigner costs more?

Ref. S2.f�Why hiring a foreigner costs more than hiring a local?

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Why Foreigner costs more?

Ref. S2.f�Why hiring a foreigner costs more than hiring a local?

The reason “Foreigners need more expenses to be paid, such as: housing, transportation. In other words they are more expensive than locals” is almost the one all respondents mention it.

Base: absolute value= Total:186 ones who said foreigners cost more

Res 4 stars: 10

Res 3 stars: 22

Res 2 stars:25

Res 1 star:23

Coffee shop 3 stars:3

Coffee shop 2 stars:25

Coffee shop 1 star:0

Entertainment City:7

Fast Food 2 stars:1

Fast Food 1 star:12

Other Location:17

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Why both costs the same?

Ref. S2.f�Why hiring a foreigner costs more than hiring a local?

In total, 21 respondents at venues stated that both costs the same.
Reasons behind this is listed below.

Reasons behind this
It is the same cost except in the case of the foreign chef who ask for a very high wage
Same since local employee asks for a high wage while cost of a foreigner employee is higher than local one (e.g. labour license and accommodation)

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General Shopping Behavior

CURRENT & FUTURE STATUS OF THIS INDUSTRY

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SHORTAGE WITNESSED AT THE PRESENT

Ref. S.3a�At the present, which of the following positions do you face shortage? And, what are the reasons behind such a shortage?

As shown in the below chart, in total there is a shortage in “waiter/waitress” position. Fast food 3 star is the most who suffer from this problem.
The least shortage is in the “food preparation assistant” position & the most who is exposed to it is Coffee shops 3 stars.

Base: absolute value= Total:345

Res 4 stars: 20

Res 3 stars: 46

Res 2 stars:55

Res 1 star:29

Coffee shop 3 stars:6

Coffee shop 2 stars:40

Coffee shop 1 star:35

Entertainment City:14

Fast Food 3 stars:1

Fast Food 2 stars:14

Fast Food 1 star:30

Other Location:55

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Ref. S.3a�At the present, which of the following departments do you face shortage? And, what are the reasons behind such a shortage?

As shown in the below chart, “Lack of local employment” is the common reason behind the shortage of all the down listed positions.
32% of respondents who stated there is a shortage in “chef assistant” position (22 respondents did) disclosed that the reason behind this is “Lack of local employment”, same for 30% of who said there is a shortage in “head chef” position (23 respondents)., etc…
64% of the 47 respondents who disclosed a shortage in the housekeeping position stated that the reason behind this shortage is “culture of shame”.

REASONS BEHIND THIS SHORTAGE

Base: absolute value= who stated shortage for

“waiter/waitress”: 64

“Housekeeping”: 47

“Food preparation assistant”: 18

“Kitchen steward employee”:30

“Head Chef”:23

“Chef Assistant”:22

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THE NEED FOR MORE EMPLOYEES IN THE FUTURE

Ref. S.3b�During the upcoming 3 years, would you need more employees?

If yes, in which departments? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need?

As shown below, Restaurant 2 stars is the most part who needs more employees during the upcoming 3 years, followed by Coffee shops 3 stars, entertainment cities, Fast food 2 stars, …
Whereas, the most who stated there is less need for more employees in the future are: fast Food 3 stars (1 venue), Restaurant 4 stars, Coffee shop 1 star, …

Base: absolute value= Total:345

Res 4 stars: 20

Res 3 stars: 46

Res 2 stars:55

Res 1 star:29

Entertainment City:14

Fast Food 3 stars:1

Fast Food 2 stars:14

Fast Food 1 star:30

Other Location:55

Coffee shop 3 stars:6

Coffee shop 2 stars:40

Coffee shop 1 star:35

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POSITIONS NEEDED IN THE FUTURE

Ref. S.3b�During the upcoming 3 years, would you need more employees?

If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need?

Base: absolute value= Total who disclosed that there is a need for more employees:168

Res 4 stars: 6

Res 3 stars: 26

Res 2 stars:37

Res 1 star:12

Coffee shop 3 stars:5

Coffee shop 2 stars:19

Coffee shop 1 star:8

Entertainment City:10

Fast Food 2 stars:12

Fast Food 1 star:17

Other Location:16

In total, 47% of the respondents who said there would be a need for more employees in the future (which they are 168 respondents) stated that the need would be for “waiter/waitress” position. Whereas 33% said “housekeeping”, 27% stated “Kitchen steward employee”, 24% “head chef”, 23% “chef assistant”, & 23% said “Food preparation Assistant “.
Out of the 47% who said “waiter/waitress” are: 63% Coffee shop 2 stars, 60% “entertainment cities”, 54% “restaurant 2 stars”, 50% “restaurant 4 stars”, …
60% out of the 33% of respondent said the need would be for “housekeeping” is “coffee shop 3 stars”.

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NATIONALITY PREFERRED FOR THE POSITIONS NEEDED IN THE FUTURE

Ref. S.3b�During the upcoming 3 years, would you need more employees?

If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need?

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Ref. S.3b�During the upcoming 3 years, would you need more employees?

If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need?

NATIONALITY PREFERRED FOR THE POSITIONS NEEDED IN THE FUTURE

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Ref. S.3b�During the upcoming 3 years, would you need more employees?

If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need?

NATIONALITY PREFERRED FOR THE POSITIONS NEEDED IN THE FUTURE

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Ref. S.3b�During the upcoming 3 years, would you need more employees?

If yes, in which positions? What nationality you prefer? And, what are the obstacles (if there is any) to fill this need?

OBSTACLES TO FILL THE NEED

Base: Abs values , ones who coded the needed positions

Waiter/waitress: 79

Housekeeping: 56

Kitchen steward employee: 45

Head Chef: 40

Chef assist.: 39

Food preparation Assis: 39

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STATUS OF THE EMPLOYEES TURNOVER

Ref. S.4.a�Within the last 12 months, was it very low, low, medium, high, or very high the amount of employees who left at each department? & what are the reasons behind this?

Base: absolute value= Times each position was coded to address a turnover in the past

Waiter/Waitress: 121

Kitchen steward employee: 81

Food preparation Assistant:80

housekeeping:77

Chef Assist:63

Head Chef:53

Sous Chef:42

Pastry Chef:39

Butcher:36

Restaurant Manager:35

The below chart gives a picture of the status of the turnover for some position respondents have mentioned.
“Housekeeping” & “waiter/waitress” are the most positions witness high turnover.
“Butcher”, “Sous Chef”, “Pastry chef”, & “kitchen steward employee” are the most that witness very low turnover.

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Ref. S.4.a�Within the last 12 months, was it very low, low, medium, high, or very high the amount of employees who left at each department? & what are the reasons behind this?

REASONS BEHIND THE STATUS OF THE EMPLOYEES TURNOVER

Base: absolute value= Times each position was coded to address a turnover in the past

Waiter/Waitress: 121

Kitchen steward employee: 81

Food preparation Assistant:80

housekeeping:77

Chef Assist:63

Head Chef:53

Sous Chef:42

Pastry Chef:39

Butcher:36

Restaurant Manager:35

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General Shopping Behavior

IS EFFECTIVE TRAINING NEEDED?
THE INCAPABILITY OF LOCAL STAFF.

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IS THERE A NEED FOR AN EFFECTIVE TRAINING?

Ref. S5a�In your opinion, do you think that employees are in need for effective training?

In total 51% thinks there is no need for an effective training.

Base: absolute value= Total:345

Res 4 stars: 20

Res 3 stars: 46

Res 2 stars:55

Res 1 star:29

Coffee shop 3 stars:6

Coffee shop 2 stars:40

Coffee shop 1 star:35

Entertainment City:14

Fast Food 3 stars:1

Fast Food 2 stars:14

Fast Food 1 star:30

Other Location:55

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TYPE OF TRAINING NEEDED

Ref. S5.b�Could you please list what type of training is needed for each position?

Position	Waiter/Waitress	Food preparation Assistant	Head Chef	Chef Assistant	Captain/floor manager
Base : Absolute values; who thinks there is a need for a training	46*	30*	27*	22*	16*
Customer Service	72	13	18	18	69
Theoretical and practical training on the mechanism of works	11	7	7	14
Food preparation courses for the different types	9	80	78	45	19

Base:Abs value:

168 who thinks there is a need for a training

Out of the 168 respondents -who disclosed that there is a need for an effective training – 28% stated that “waiter/waitress” are the ones who are in need. At the same time 14% out of them said that all positions need an effective training. The last said that all kind of training is needed.

Types of the training

*Absolute values

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CAPABILITIES & AVAILABILITY OF LOCAL STAFF

Ref. S.6a�In your opinion, for the following positions do you think our local labor is capable & available of filling them? If No, kindly provide us with the obstacles behind this incapability.

Base: absolute value=Those are the #s of respondents who mentioned each position in S.6a "mentioned it to comment on the capabilities of local labour"

Head Chef: 298

Waiter/Waitress: 293

Housekeeping: 290

Chef Assist:290

Food preparation Assistant:286

Kitchen steward employee: 286

Busboy:248

Sous Chef:282

At the total level, the most positions mentioned related to the local labor capabilities are –in order- :

Head chef, Waiter/waitress, Housekeeping, Chef assistant, Food preparation assistant, Kitchen steward employees, busboy & sous chef.

As for the “housekeeping”: 22% out of the 290 “who mentioned housekeeping when they talked about local capabilities” disclosed that local staff are incapable of filling this position.

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REASONS BEHIND THE INCAPABILITY OF LOCAL STAFF

Ref. S.6b�If No, kindly provide us with the obstacles behind this incapability.

52% of the 65 respondents who mentioned the incapability of local staff to fill the “housekeeping” position stated that reason behind this is (Culture of shame). Same as the majority for the ones who mentioned (Waiter/Waitress), (Kitchen steward employee), & (Busboy) positions.
Majority of the ones mentioned head chef, Food preparation Assistant , Chef assistant & Sous Chef said the reason is “less experience in this area”.

Base: absolute value=Those are the #s of respondents who mentioned each position in S.6a & disclosed that local staff are incapable

Head Chef: 48

Waiter/Waitress: 48

Housekeeping: 65

Chef Assist:31

Food preparation Assistant:34

Kitchen steward employee: 45

Busboy:31

Sous Chef:29

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General Shopping Behavior

RECRUITING METHODS

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RECRUITING PROCESS

Ref. S.7a�When you have a vacancy(s), what is the process you follow to fill this vacancy(s)?

	WORD OF MOUTH	NEWSPAPER ADS	INTERNET
Base: Abs value	134*	106*	46*
Yes	95	91	96
No	5	9	4

Ref. S.7b�Did you manage to fill the vacancy(s) using the mention method? And why?

Base: Absolute value: all respondents 345

As it is shown below the majority of all the respondent states that word of mouth is the most used method in order to recruit staff.
Word of mouth succeed almost all of the time, & also the same for “Newspaper Ad” & “Internet”.

* Absolute value

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REASONS BEHIND THE RESULT OF THE RECRUITING PROCESS

Ref. S.7b�Did you manage to fill the vacancy(s) using the mention method? And why?

Reasons behind the success

Reasons behind the Failure

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BENEFITS GIVEN TO LOCALS VS. FOREIGNERS
LOCAL HOSPITALITY GRADUATE

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BENEFITS OFFERED BY THE MANAGEMENT

Ref. S.8a�Kindly choose from the following options what kind of benefits the management offers for the employees(both, locals & foreigners)

As it is shown below, 97% of all the respondents said that they offer “social security” for their employees. This is normal since law obligate them to do so.
81% offer “salary increment” for their staff, whereas 76% said that they offer meals for the staff during their working hours.

Base: (Absolute value): all respondents 345

Ref. S.8b�Which of the below statements best describe the benefits given to foreigner employees & local employees?

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LOCAL HOSPITALITY GRADUATE

Ref. S.9a�Do you have any local hospitality graduate working at your business?

In total 64% of all respondents answered with no; they don’t have local hospitality graduate.
50% of respondents at Restaurant 4 stars said yes they have while the other 50% said the opposite.

Base: absolute value= Total:345

Res 4 stars: 20

Res 3 stars: 46

Res 2 stars:55

Res 1 star:29

Coffee shop 3 stars:6

Coffee shop 2 stars:40

Coffee shop 1 star:35

Entertainment City:14

Fast Food 3 stars:1

Fast Food 2 stars:14

Fast Food 1 star:30

Other Location:55

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Ref. S.9c�how satisfied with local hospitality graduate working at your business are you?

Business Type	Occupation	How satisfied with the local hospitality graduate
Business Type	Basis: Absolute values If there are LOCAL hospitality Graduate	Satisfied	Dissatisfied
	124*	81	6
Restaurant 4 stars	10*	60	20
Restaurant 3 stars	20*	85	10
Restaurant 2 stars	26*	73	8
Restaurant 1 star	9*	56
Coffee shops 3 stars	3*	67
Coffee shops 2 stars	17*	88	6
Coffee shops 1 star	4*	75	25
Entertainment city	6*	100
Fast Food 3 stars	0*
Fast Food 2 stars	5*	100
Fast Food 1 star	6*	100
Other locations	18*	89

*Absolute Values

Top 2 boxes & Bottom 2 boxes are used

HOW SATISFIED WITH THE LOCAL HOSPITALITY GRADUATE?

As it shown below 81% of the 124 respondents interviewed are satisfied with the local hospitality graduate they do have at their venues.

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S.9d

You stated that you are dissatisfied with the local hospitality graduate working at your business, could you please tell us the reasons behind this?

*Base: 8 venues who have local graduate & they are not satisfied with.

** very low base

REASONS BEHIND BEING DISSATISFIED WITH THE LOCAL HOSPITALITY GRADUATE

Half of the 8 venues who have local graduate & they are not satisfied with said that the reason behind this is that these graduated people are not that qualified.

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THANK YOU!

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