Massachusetts restaurants hope for strong summer

BOSTON, June 23 (Reuters Life!) - Vacationers flocking to Massachusetts' beaches and cities this summer will generate strong seasonal hiring in the state's hospitality sector, according to a trade group.

Massachusetts is projected to be among the five U.S. states adding the most restaurant and bar jobs for the summer season, the National Restaurant Association said.

Travel, vacation and restaurant spending are regarded as a good indicator of consumer confidence. Conditions in the U.S. hospitality industry overall are looking up as Americans feel ready to spend more on non-essential items.

"The operator community is getting somewhat more optimistic," said Hudson Riehle, senior vice president of research with the NRA.

Nationwide, restaurant employment could grow by 428,000 this summer, the NRA said. Industry sales were up about 3 percent on a national basis in May versus a year ago.

"Growth is still modest by historical standards. But ... it's proving to be the best year since 2007," Riehle said.

Riehle said the roughly 24,800 summer positions expected to be filled in Massachusetts bars and restaurants is driven in part by tourists and vacationers who flock to popular areas such as Cape Cod during the summer.

Restaurant sales forecast for Massachusetts this year stand at $12.4 billion, up 2 percent from 2009, Riehle said.

Depending on the type of restaurant, Riehle predicts tourism could be responsible for 20 percent to over 40 percent of establishment sales.

In the Boston and Cambridge markets, double digit growth in international visitors has fueled increased hotel occupancy, said Pat Moscaritolo, president of the Greater Boston Convention & Visitors Bureau.

He also noted increased weekend leisure travelers taking advantage of hotel and dining deals.

"We are bullish going into the fall," said Moscaritolo, who forecasts year over year growth in hotel activity of 7 percent during the next five months.

READY TO SPEND?

Some of Boston's major restaurant groups are gearing up for a better summer.

The Briar Group, which operates 11 restaurants and bars around Boston, approached the summer of 2009 with "a lot of doubt," said chief operating officer Tom Shea.

But rising consumer sentiment has boosted the firm's confidence for summer 2010. The group has seen strong sales during the past three months.

The Briar Group opened a new restaurant in April. Shea said the group has added six new managers this year and also added staff to the culinary teams.

Industry job posting on BostonChefs.com, a dining guide for chef owned and operated restaurants around Boston and Cape Cod, are similar to last year but up substantially from 2008, said Honor Lydon, executive editor for the site.

For many operators outside of coastal hubs, summer hiring spikes are not part of the plan.

"Our business operating model is 'steady as she goes, hold expenses, hold onto staff, hold onto guests,'" said Jeffrey Gates, a partner of Boston restaurant company The Aquitaine Group, which manages six establishments in the Boston area.

That sentiment was echoed by Eli Feldman, director of operations with Boston-based restaurant company Barbara Lynch Gruppo.

The firm added employees for its eighth outpost, which opened in the spring, but otherwise hiring has been relatively light, said Feldman. The company had no layoffs during the recession and focuses on hiring for the longer-term. (Reporting by Lauren Keiper; editing by Ros Krasny and Patricia Reaney)

REUTERS