Since the pandemic, the restaurant industry has faced many challenges, not the least of which has been a labor shortage. The labor crisis took its toll on the spectrum of the food service industry, and, of course, the quick-service sector was greatly impacted.
Even as we see the industry stabilizing in many ways, echoes of the labor crisis remain. “The December Business Conditions Survey from the National Restaurant Association reported that 89% of operators said labor costs are a significant challenge, and 62% don’t have enough employees to support existing demand,” reports this Nation’s Restaurant News (NRN) article.
But the restaurant industry hinges on positivity: from cheerful smiles to customers and, even in the face of labor challenges, optimism about upcoming industry growth. The same NRN article says, “The survey found that operators are actively looking to boost staffing levels, with 87% saying they will likely hire additional employees during the next six to 12 months if there are qualified applicants available.”
And while skilled, committed workers are tricky to come by, quick-service employers are making adjustments to find the right people and to install them into a company culture that makes them want to stay. This is especially apparent in a fast-growing brand: Dutch Bros. “Dutch Bros, one of the fastest-growing concepts in the foodservice industry, has navigated the tight labor market with minimal disruption thanks to its strong corporate culture, a promote-from-within philosophy and enjoyable work environment,” Joth Ricci, president and CEO of Dutch Bros Coffee, told NRN. “The company has what Ricci described as one of the lowest turnover rates in the industry and is very selective in its hiring.” Ricci credits their particular selection process at the first entry point of hiring good workers, but their retention is due to a great culture that empowers employees.
One interesting tactic: “Dutch Bros is that every employee can do every job in the restaurant, so workers tend not to get bored doing the same tasks every shift,” NRN writes. Further investigation easily uncovers other perks: “In addition, the company takes pains to ensure that the environment in the restaurant is enjoyable, with music playing plus free apparel and free drinks available, as well as the ability to earn tips on top of their hourly wage.”
This model and community-mindedness is easily employed in a quick-service restaurant like Dutch Bros., but it is the mentality and approach that our restaurant consultants believe can be applied to any sector of the food service industry.
In a post-pandemic world that is hiring from Millennial and Gen Z labor pools, there is an incredible shift toward culture. Workers want jobs that will lead them someplace, will support them as people, not pawns. That is why Smokey Bones Bar & Fire Grill has put much effort into their employee development programs. “Since the second week of the pandemic, the company has been conducting “town hall” meetings for managers every Thursday, providing business updates and soliciting feedback through question-and-answer forums,” Hal Lawlor, chief operations officer, told NRN.
And the Checkers and Rally’s brand is taking it even further, asking, not only what keeps employees happy at work, but how they can encourage their workers to advance through the restaurant industry. “Employee-focused incentives offered at Checkers & Rally’s include immediate benefits for all part-time employees for as little as $15 a month for employees and their families, free English classes for non-first language speakers, and free GED classes and certain college courses.”
At the heart of these efforts, beyond the marketable perks and prizes, is a real care for the people who carry these restaurants. Richard Weil, principal and owner of National Restaurant Consultants reflects on these brands and their abilities to attract and retain staff. “While not every independent restaurant operator can provide all of the perks and benefits some of these national and regional brands are providing, the common denominator is culture. Culture touches every staff member, and the upside goes all the way to service for your guests.”
We at National Restaurant Consultants have been watching this cultural shift, and we think it’s an important one. Caring for staff members and focusing on company culture is the surest way to pass along great service and a quality product to your guests. Focusing from the inside out is the best opportunity for building healthy working environments that benefit your guests and, ultimately, your bottom line.