Restaurants are starting the year by shedding jobs.
The industry cut 27,500 positions in February, according to data from the U.S. Bureau of Labor Statistics released on Friday.
It was the second straight month of declines. So far this year, food services and drinking places have shrunk by 57,000 jobs, suggesting a pullback in hiring amid poor weather and sales challenges. Restaurants and bars account for 12.3 million jobs overall.
Overall, the economy experienced tepid job growth in February, adding 151,000 jobs overall. The unemployment rate remained steady at 4.1%.
Weak restaurant industry hiring comes amid a number of layoffs at the corporate level. Companies like Starbucks, Outback Steakhouse owner Bloomin’ Brands, Applebee’s owner Dine Brands Global, the doughnut franchise Duck Donuts and Panera Bread have all cut workers this year amid sales and other issues.
The restaurant industry has started out 2025 on tough footing. Snowstorms in the South and fires in Los Angeles have contributed to weak sales. But several executives cited weakness beyond that, particularly among lower-income consumers. Several restaurant chains expect to start the year with either declining or lower-than-expected sales.
Stocks were higher in morning trading on Friday.
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