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3 Ways to Optimize
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3 Ways to Optimize
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Restaurant operators are facing major challenges when it comes to hiring and maintaining
a quality, motivated labor force. Turnover in the restaurant industry has been on the rise for
years, while at the same time the number of young people in the labor force has declined.
According to the Bureau of Labor Statistics, the employee turnover rate for the hospitality
industry has been increasing for the last five years. In 2010, the average turnover rate was
56 percent; by 2015, this has spiked to 72 percent. Dallas-based research firm TDn2K
reports that in 2015, 71 percent of all voluntary terminations had been on the job for less
than one year.
Combine those trends with higher wages and new labor regulations, and it is apparent that
restaurant companies of all sizes are facing a labor crisis. Fortunately, there are some steps
operators can take to get ahead of these. Those steps were part of a panel discussion at
the 2016 Fast Casual Executive Summit, held in October.
Utilize Technology
As the labor market gets tighter, many operators are turning to technology as a way to
manage the issue.
Many operators utilize scheduling tools to manage labor effectively. But according to
Aaron Day, founder and president of fast-casual restaurant Blue Lemon, “one of the
biggest problems when using labor scheduling systems is that you’re not using the human
element. Scheduling a good mix of people and experience levels on a shift can go a long
way in promoting retention and improving morale,” Day said.
When a guest places an order at the counter, the cashier gives them a Table Tracker
device. The Table Tracker looks like a traditional restaurant pager, but it is packed with
operational power and analytics.
Guests receive the Table Tracker when they place their order at the counter. They then
take the Table Tracker to their chosen seat, and the device reads their location number via
RFID tags installed under the table. That information is communicated to the point-of-sale
system, so when the order is ready the runner knows exactly where the food should be
delivered; ensuring guests receive their food as soon as possible. Table Trackers provide
analytics like order times, allowing managers to adjust schedules to meet peak demand.
Blue Lemon uses the Table Tracker system in all of their locations. “We have lines out the
door during big service times, and our runners don’t have to walk around with the tray
looking for the guest. We can use one less runner, and our food is hotter because it gets to
the table faster,” said Day.
Self-order technology is another area where operators can pass basic ordering tasks to
a kiosk and redeploy workers to perform more personalized interactions with customers.
“When you think about it, about 25 percent of guest service is order taking and cash
handling. Being able to remote that to a kiosk impacts efficiency and labor costs. Then,
you don’t have to increase prices,” said Martinez.
“Recruiting, turnover and retention all tie back to communicating effectively around a
brand’s culture,” said Michelle Strong, CMO at Long Range Systems. “Employees are
paying attention to the company’s social reputation, what customers are saying about a
brand and how that worker will be associated with that brand.”
All too often operators “hire by panic,” waiting until they are down two or three staffers
to begin the recruiting process. This type of disruption results in poor service and food
quality, which can result in even more turnover.
Even when the location is fully staffed, operators should continue recruiting, expanding
their efforts beyond the typical teen labor pool. “An interesting shift I’ve seen is a lot more
baby boomers looking for part-time jobs,” said Day.
Another way operators can improve culture is by demonstrating the career opportunities
that exist in the restaurant industry to young talent. When a teenager leaves to go to
college, are they being told of the opportunities that may be available with that company
once they finish their degree?
Simple changes can often be made to maximize sales productivity. For example, rather
than bringing in a separate prep crew in the morning, operators can have line employees
perform some of those tasks between the lunch and dinner rushes. Other tasks might be
able to be performed by closers once the dinner rush subsides.