Article contributed by Joy Pouros, Culinary Software Services
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The demands of working in the foodservice industry are relentless, and that has long made it difficult to find and retain good help.
In today’s labor market, that challenge has become particularly daunting, with high turnover, low unemployment, and many industries fighting for skilled workers. Rising costs have made it challenging for both employees and employers to achieve financial stability.
The reasons recruiting and retaining staff is so difficult is complex, and there’s no simple solution. Yet there are still ways restaurant owners can increase their chances of being a sought-after employer in a tight labor market.
Challenges in Recruiting and Retaining Skilled Staff
Foodservice turnover rates are notoriously high, currently at around 75%. Why is it so high? There are a number of factors that make it difficult to attract and retain workers.
Work can be physically demanding and stressful. Employees are on their feet their entire shift, and speed is critical in getting tables served and keeping customers happy.
Not only are employees under pressure to do the job quickly and well, but they also do it with a smile because much of their income often relies on tips, which brings us to…
Wages are typically low for foodservice workers, with many roles reliant on tips, which can be inconsistent or unpredictable. That makes budgeting difficult.
Just like companies have been hit with rising costs, so have consumers, and that includes employees who need to support themselves amid rising rent and grocery costs.
Coupled with unpredictable or inconsistent schedules, and working at a restaurant can make family relationships and planning a challenge.
Unfortunately, some unsavory business owners make the foodservice industry unattractive. The industry has more wage and hours violations than any other industry, according to the Department of Labor.
Wage theft, particularly common among tipped employees, is a concern to workers, as is sexual harassment. The EEOC reports the accommodations and foodservice industry has more reported instances of sexual harassment than any other industry.
Restaurant work is difficult, and potential employees have more choices than ever. Retail jobs often keep employees on their feet much of the day and involve interacting with the public, but are often slower paced than the dinner rush at a restaurant.
Customer service reps may deal with angry customers, but have more remote opportunities, consistent schedules, and bonuses.
The competition isn’t limited to other industries. For independent operators, competing with large chains in the same industry poses challenges.
National and international brands can often offer health insurance, PTO, tuition or student loan benefits, and other benefits that are difficult or impossible for small businesses to compete with.
Recent Market Changes
While the foodservice industry has always had high turnover, in recent years there have been large shifts in consumer behavior and the industry and labor market at large that have influenced staffing needs and shortages.
The pandemic led to sudden volatility in the foodservice industry and the world. Many restaurants closed permanently, while others changed their hours or pivoted hard towards takeout and delivery, which changed the internal staffing needs of the business.
Parents suddenly found their childcare arrangements less reliable, as schools went virtual and daycares had limited capacity.
New opportunities for delivery drivers opened up in the gig community, which enabled workers to make their own schedules and work as much or as little as they wanted.
Some who left found new careers in different industries and never returned. Those who stayed in the foodservice industry had to deal with many challenges. They dealt with changes in health safety protocols, working while wearing masks and spending more time cleaning and sanitizing surfaces.
They were considered frontline workers, deemed essential. They interacted with the public amid unknown risks, ensuring strangers got food while scared for their own health. Many reported going to work despite having symptoms due to lack of paid sick leave and fear of retaliation.
They also often experienced a change in customer interactions – and not for the better. Despite a lot of press coverage and initiatives touting frontline workers as heroes, many workers didn’t feel respected in their day to day working conditions.
Customers became less patient, more demanding, and disrespectful – behaviors many customer-facing workers say have remained challenging post-covid.
Experts say this is a combination of the increase in stress and anxiety that was widespread during the pandemic and a decrease in face-to-face interactions which contributed to people forgetting the importance of niceties when having interpersonal interactions.
Regardless of reasons, this decline in how consumers treat staff creates a poor work environment, making foodservice positions less desirable.
The foodservice industry wasn’t the only industry experiencing labor shortages on the heels of the pandemic, which led to the “great resignation” in 2021-2023. People left their jobs for work that paid more. It was an employee’s market.
Yet they didn’t all stay in foodservice. With an increase in remote work, many people in jobs that require customer interaction – including the foodservice and hospitality industries – looked for new careers with greater flexibility, work-life balance, and less stress.
While these specific challenges are over, their impact remains. There are fewer individuals looking to work in the foodservice industry.
Attracting Candidates Today
With all that bad news, what can restaurant owners do about it? Solutions fall into several categories.
Technology Usage
Appropriate usage of technology saves money by increasing accuracy in tasks, reducing waste, and reducing labor hours. Customer facing tech can enable consumers to place their orders without staff present at a kiosk or allow them to pay at their table without anyone bringing the check, collect payment, and return the card or change.
Technology can also streamline taking inventory and other employee tasks.
The key though, is appropriate usage of technology. Some customers prefer to pay with cash or have questions about the menu and require staff’s help.
When done well, technology saves staff time and makes their job easier. Poorly implemented technology can be frustrating to staff and make their jobs harder.
Create and Maintain a Good Work Environment
A good work environment encompasses the physical environment and the company culture. This includes clean, working equipment, proper PPE, and an otherwise safe workspace.
It also entails confidence they will be treated fairly and kindly. It should go without saying that this includes fair payment practices and no tolerance for abuse of employees. That goes for abuse from management, other employees, or customers.
The customer might not always be right. Being willing to stand up for your employees might be the difference in retaining staff or becoming a safe haven for angry people to unload on workers who have no choice but to take it.
Workforce Diversity and Inclusion
Data from McKinsey & Company shows that companies with a diverse workforce outperform their non-diverse peers. Yet putting a few lines about how you value diversity at the end of your job postings isn’t enough to convince prospective workers you care about diversity.
Having non-gendered bathrooms or a wheelchair accessible store helps increase the employees who can and want to work for you.
There are also programs available that help match companies with workers with disabilities, criminal records, or otherwise disenfranchising characteristics. These programs increase your hiring pool with hardworking individuals eager to find a fair employer.
Training and Professional Development
Despite the National Restaurant Association forecasting sales to exceed $1.1 trillion in 2024, many people don’t view foodservice as a viable career path. For many, it won’t be, since foodservice is quite often a transitionary job while students are in school.
Yet many would love to be able to advance in the industry. Training and development opportunities make jobs more attractive, while also equipping businesses with more loyal and higher skilled employees in the mid- and long term.
Employee Benefits and Perks
Ideally, employees would love healthcare, retirement options, PTO, and more! That’s not always feasible for smaller operations, but that doesn’t mean offering nothing is the only alternative.
An allotment of paid sick time and flexible scheduling are benefits that can be a differentiator between you and another restaurant down the street.
If these options sound expensive, remember that each employee lost costs a restaurant over $5,000 in recruiting, training, and lost productivity costs.
A New Era in Employee Recruiting and Retention
As the last four years have undeniably confirmed, no one can fully predict how the workforce will change over time. The pandemic and the great resignation demonstrated how the power dynamics between employer and employee can shift dramatically in short periods of time.
Yet people will always need jobs and employers who are responsive to employee needs and who invest in their teams and in their workplace environment will have an edge over competitors.
The foodservice industry is large, yet in every market it often seems like a close-knit community where everyone knows everyone. Restaurants who garner a reputation as a good employer will reap the benefits for years to come.
Joy Pouros works as the authority writer in the Training department at Culinary Software Services, where she writes on topics as diverse as human resource issues to increasing profits.
Joy entered the industry working as a Nutritional Aide in the Chicagoland area before moving into writing and consulting. Joy now specializes in marketing and public relations and writes for a variety of industries.
