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Effective Strategies to Expand Your Restaurant Business in an Era of Employee Shortage.

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Reading time: 8 minutes.

The success of a restaurant has always hinged on a delicate balance of flavours, ambience, and service, where culinary creativity meets the art of hospitality. However, as we navigate the modern cooking landscape, one crucial ingredient has become increasingly scarcethe skilled and dedicated workforce.

The restaurant industry has long been acquainted with the challenges of high turnover rates, seasonal staffing fluctuations, and the constant quest to attract and retain top talent. But in the age of employee scarcity, these challenges have increased.

A perfect storm of factors, from shifting job market dynamics to evolving workforce expectations, has left restaurant owners and managers grappling with a talent shortage of quite significant proportions.

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In this article, we go through the art of cultivating a compelling employer brand, where your restaurant becomes a workplace and a destination for those seeking a fulfilling career. We'll uncover the secrets of attracting and retaining talents, even in fierce competition. And we'll savour the concept of reskilling, where individuals from diverse backgrounds are brought into the fold and transformed into the culinary artists and service magicians your restaurant needs.

In a world where the best dishes are created with the finest ingredients, your restaurant's success is closely tied to the people who bring it to life. By embracing innovation and adaptability, your restaurant can thrive and set new standards for excellence, even in the age of employee shortage.

In this in-depth analysis, we will talk about:

  1. Crafting a Captivating Workplace Image
  2. Challenges in Talent Acquisition and Retention
  3. Strategies for Employee Retention
  4. Upskilling or Reskilling?
  5. Tips for Effective Recruitment
  6. Conclusion

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1. Building an Irresistible Workplace Image

A workplace image or employer brand refers to the impression that an organization – in this case, a restaurant business – projects as an employer. The perceptions, the beliefs that current and even potential employees hold about the restaurant as a place to work.

Building a strong employer brand is crucial for several reasons, especially in the restaurant industry, as an attractive employer brand can help you stand out in such a competitive labour market.

Restaurant businesses with a positive reputation as employers tend to draw in high-quality candidates looking for a stable, rewarding, and enjoyable workplace. An employer brand that emphasises a supportive work culture and opportunities for growth can contribute to higher retention rates in an industry prone to turnover.

Also, a positive employer brand can enhance employee engagement. Employees who feel connected to and proud of their workplace tend to be more motivated, productive and committed to the restaurant's success. A happy and engaged workforce can provide better customer service, increasing customer loyalty and satisfaction.

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2. Talent Acquisition and Retention Challenges

In the restaurant and hospitality industry, attracting and retaining top talent is beset by numerous challenges. High turnover rates, often driven by long working hours, low wages, and seasonal fluctuations, are persistent. Intensifying the struggle is fierce competition for talent, not just within the industry but from the gig economy and other sectors. Offering competitive wages and benefits is necessary to secure talent, yet this can strain labour budgets, affecting overall profitability. Moreover, the industry's demanding schedules can be unappealing to candidates seeking a better work-life balance, further complicating recruitment and retention efforts.

Besides that, talent retention also plays a pivotal role due to the critical issue of high turnover costs. Constant employee turnover requires ongoing recruitment, training, and onboarding, which financially strains the restaurant's stability. Beyond the financial implications, retention is fundamental to maintaining a consistent level of service quality, ensuring customer satisfaction and fostering loyalty.

Frequent turnover can take a toll on employee morale, affecting the job satisfaction and performance of the remaining staff, making it evident that retention is not just a financial concern but a key driver of overall operational success and customer experience.

restaurant chains challenges

3. Strategies for Employee Retention

The accurate measure of an organization's success lies in recruitment and its ability to retain and nurture these valuable assets. Retention has emerged as a foundation of long-term achievements, representing an organization's commitment to its workforce. So, let’s explore strategies and best practices beyond recruitment to ensure that the talent you've acquired remains a steadfast force in your organization.

  • Competitive Compensation and Benefits: Offer competitive wages, bonuses, and benefits like healthcare and retirement plans.

  • Career Development: Provide opportunities for career advancement within the restaurant. Offer training and development programs to help employees grow.

  • Recognition and Rewards: Recognize and reward exceptional performance with awards, bonuses, or promotions. Employee recognition fosters loyalty.

  • Flexible Scheduling: Implement flexible scheduling to accommodate employee needs and improve work-life balance.

  • Support Work-Life Balance: Encourage employees to maintain a healthy work-life balance, leading to better job satisfaction and retention.

  • Employee Feedback: Create channels for open communication and feedback. Listen to employee concerns and ideas and act on their feedback.

  • Training and Upskilling: Invest in training and upskilling programs to enhance employees' skills and make them feel valued.

  • Diversity and Inclusion: Promote a diverse and inclusive workplace to make all employees feel welcome and valued.

  • Mentorship and Coaching: Provide mentorship and coaching opportunities to help employees learn and grow within the restaurant.

  • Employee Well-Being: Offer mental health resources, wellness programs, and support for employees' physical and psychological well-being.

Learn more about attracting and retaining top talents in our white paper “Thriving Through Turbulence: Strategies to Grow your Restaurant Business in the Age of Employee Scarcity.” 

restaurant chains challenges

4. Upskilling or Reskilling?

Upskilling and reskilling are two related but distinct concepts in workforce development. Upskilling refers to the process of enhancing the skills and competencies of employees in their current roles. It focuses on developing employees' existing skills to make them more proficient, productive, and adaptable within their current job positions. Reskilling, on the other hand, refers to equipping employees with entirely new skills, often transitioning them into different organisational roles or functions. It involves training employees for positions they haven't held before.

The primary purpose of upskilling is to enable employees to excel in what they currently do, stay relevant in their industries, and meet the evolving demands of their jobs. This can include learning new tools, technologies, or techniques related to their job functions and, for instance, training a customer service representative to improve their communication skills or equipping a chef with the latest culinary techniques to enhance their performance.

Reskilling is applied when an organization needs to adapt to changing circumstances or when employees must be redeployed to new roles due to changes in the job market or the organization's strategic focus. It addresses skill gaps by teaching employees new skills, allowing them to take on different responsibilities, such as training a receptionist with no marketing experience to become a digital marketing specialist or transitioning an administrative assistant into a data analyst role.

Both upskilling and reskilling are essential strategies for workforce development and addressing evolving industry needs.

 

5. Tips for Effective Recruitment

Recruitment is the basis of building a thriving restaurant team, and practical strategies can make all the difference. One approach is to target passive job seekers who may not be actively job hunting but could be enticed by new opportunities. Engaging with candidates through networking events and social media platforms can help you tap into this talent pool.

Additionally, leveraging online job platforms and restaurant-specific job boards widens your reach and connects you with a diverse candidate pool.

Transparency in compensation practices is also a good way to attract employees – offering competitive compensation, including wages and benefits packages, is essential and appreciated by workers. Besides that, emphasizing the potential for career growth within your restaurant appeals to professionals eager to advance and can inspire a sense of long-term commitment.

Lastly, creating an attractive workplace culture centred on teamwork, support, and recognition is a powerful draw for potential employees; showcasing this culture during recruitment sets a positive tone for the journey ahead.

 

Conclusion

Adapting to the challenges of employee scarcity in the restaurant industry is paramount for sustaining success and growth. It acknowledges the industry's persistent high turnover, fierce talent competition, and workforce expectations, which have intensified recently.

Adapting involves cultivating a compelling employer brand to attract and retain talent, implementing effective recruitment strategies, and investing in retention to reduce high costs associated with turnover, contributing to a more stable, productive, and positive work environment.

By embracing innovation, adaptability, and employee-focused strategies, restaurants can not only navigate these challenges but also set new standards for excellence in the age of employee scarcity, ensuring resilience and long-term prosperity.

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Thriving in Challenging Times: Effective Strategies to Expand Your Restaurant Business in an Era of Employee Shortage.