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4 ways to quit all the QSR quitting

The latest numbers are also the highest numbers we've ever seen for restaurant worker turnover rates, and it's become one of the industry's most vexing problems. Operators must fight the job "churn" with all they've got, including these four proven strategies.

July 1, 2019 by Andrew Rosenbloom — Director of Marketing, Consolidated Concepts

Since some of the most recent numbers were publicized on the rate of employee turnover in the restaurant industry by the  U.S. Department of Labor for 2016, all information suggests that the rate of that job "churn" has only increased from the 73 percent rate documented 2 1/2 years ago to now. In fact, that 2016 number marks an all-time high in restaurant industry turnover. So, with that knowledge, along with the fact that the number of restaurant industry are expected to grow 14 percent (2016 to 2026), it seems fairly obvious that the issue of explosive levels of employee turnover is not about to fade away. 

As highlighted by the National Restaurant Association, annual employee turnover rates for the industry are almost double that of the private sector. Meanwhile, the average cost to hire and train a new employee remains at about $3,500 per worker. It is, simply put, a battle operators fight every day regardless of size. There are, however, four proven approaches to help quell the churn, as follows. 

Build a strong, collaborative culture

Former head of training and development for Hard Rock Café, Jim Knight, wrote an entire book on how restaurant brands can build an engaging culture intended to drive employee retention. According to Knight, most companies ignore organizational structure because they focus exclusively on strategy and operations. 

"The reason great brands focus on organizational culture first and foremost is so it will drive the ultimate business success. ... They constantly opt for the long-term sustainability of culture versus the limited focus of an annual strategy," Knight wrote. 

"But all organizational practices--positive and negative--only exist because individuals make them happen. Remember, culture is only as strong or weak as the employees that collectively make up the heart and soul of the organization." 

By creating a strong organizational culture, one that puts employees' needs ahead of strategy and operations, while also taking workers' views into account, restaurant operators can create work environments that foster employee engagement and retention.

Reward, 'incentive-ize' often

It's human nature to want to be rewarded and recognized for a job well done. When this recognition is well-executed, it creates a level of excitement across a restaurant brand. 

For example, Illiniois-based limited service brand, Suzy's Swirl. gives employees custom-branded Nike sneakers on their anniversaries, and employees' work to stay long enough to earn their reward for a job well done. By creating a rewards program or incentives to stay for certain lengths of time, meet sales goals, and more, employees can strive to be their best.

"Rewards and incentives need not be expensive. Being genuine and authentic, and saying 'Please,' 'Thank you' and 'Great job,' brands can create an environment where employees thrive, rather than just survive," said the founder of workforce support company, GoodWorkforce, Jamie Griffith. 

"Make a positive impression when new employees start their career with your business and then celebrate important moments along the way like work anniversaries, birthdays, new homes, graduation, Mother's Day, Father's Day, and more. For recognition to occur, the feeling of appreciation must be felt during the act of recognition. Employers who offer incentives and rewards without feeling a sense of appreciation are missing part of the magic that makes these programs so powerful." 

Create, support long-term career track programs 

Both front-of-house and back-of-house employees are equally important to a brand's delivery of a great guest experience. That's why companies, like Unilever, create programs that work to build a positive kitchen culture. 

Unilever's FairKitchens program promotes the idea of restaurant kitchens working as T.E.A.M.S., standing for Talk openly, Excite passion, Act as one, Make time and Say "Good job!" These actions serve to support team members who are undergoing stress or dealing with a crisis in their lives. 

Give credit where it's due

This ties in directly with compensation and bonuses. If an employee does a good job, is a team leader, and serves as a highly-regarded brand ambassador, compensate them appropriately for their efforts. This applies to every level of your employment structure - from night crew and delivery drivers to kitchen staff and counter serves. 

Brands reporting the highest levels of retention rates are those that have gone above and beyond the minimum wage requirements mandated by the federal government. Similarly, if at all possible, the offer of an affordable health care plan speaks volumes. 

While it may seem impossible for some brands to compensate employees appropriately, it should not be. In fact, if it is, create weekly sales or other goals that are attached to financial perk in employees' paychecks. 

The bottom line is that successful brand will give their employees something that can be tough to find these days - a truly happy work environment. And in the words of AC/DC front man Brian Johnson, "For those about to rock, we salute you."

About Andrew Rosenbloom

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Andy Rosenbloom is a foodservice professional who heads up the marketing team at the Buyers Edge Platform and its associated GPO brands, including Dining Alliance, Consolidated Concepts, Buyers Edge, FoodBAM and others. Andy’s insights come from a cross-section of the operators, distributors, manufacturers, service providers and trend-watchers.

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