Restaurants & Food Services

This report examines trends in food retail in the U.S. preceding and up through the pandemic, assessing how e-commerce is likely to affect workers in the industry in the next 5-10 years. In contrast to widespread fears that technology leads to automation-related job loss, e-commerce is creating jobs, as customers are now paying for tasks that they used to do themselves for free. But for most of these new positions, job quality is a serious concern, and the passage of Proposition 22 in California this fall exacerbates the problem.

New Report Shows E-Commerce & Food Delivery Work Growing During Recession & Unemployment, but Jobs More Precarious Than Ever

Behind the apps that consumers interact with are large workforces of low-wage workers in fulfillment centers that prepare ingredients and pack them into boxes. This new and growing group of workers, who are primarily immigrants and people of color, has remained invisible in the narrative of how meal-kits are “disrupting” the food industry.

To date, little attention has been paid to the industry’s frontline production workers and how jobs at meal-kit fulfillment centers compare to others in the food industry.

New UC Berkeley report looking at job quality in a meal-kit fulfillment center finds workers struggling with low wages, unpredictable schedules, workplace-related injuries, and sexual assault.

This report is based on worker surveys, in-depth interviews with workers and employers, analysis of industry and government data, and reviews of existing academic literature. It represents the most comprehensive analysis ever conducted of California’s food retail industry.

Medicaid, the Earned Income Tax Credit and the other public benefits programs discussed in this report provide a vital support system for millions of Americans working in the United States’ service industries, including fast food. We analyze public program utilization by working families and estimate total average annual public benefit expenditures on the families of front-line fast-food workers for the years 2007–2011.