In a landscape forever altered by global events, the restaurant industry is embracing a new normal that demands adaptability, innovation, and a profound understanding of evolving consumer behaviors. The recently unveiled 2023 National Restaurant Association State of the Industry Report sheds light on the pivotal shifts that have reshaped the culinary world, offering valuable insights into the challenges and opportunities that lie ahead.

The Unveiling of the New Normal:

The 2023 State of the Industry Report unveils a transformative period for the restaurant sector that has led to the emergence of a new normal. The restaurant industry was at the forefront of change as the world navigated unprecedented challenges. Insights from the report provide a comprehensive overview of how restaurants are rewriting their playbooks to thrive in the current landscape.

Adaptability: The Cornerstone of Survival:

One resounding theme from the report is the industry’s resilience and adaptability. Restaurants have embraced a fluid approach to their business models, emphasizing enhancing off-premises dining options. The pandemic-induced takeout, delivery, and curbside services surge has sustained many establishments and fueled the growth of ghost kitchens and virtual concepts.

Technology as a Catalyst:

Technology’s role in shaping the restaurant landscape has never been more evident. The report highlights the acceleration of tech adoption, from contactless ordering and payment systems to sophisticated delivery logistics. Restaurants are embracing the digital realm to streamline operations, enhance guest experiences, and facilitate more efficient workflows.

Reimagining the Guest Experience:

The guest experience has undergone a metamorphosis, with safety and convenience now holding paramount importance. Diners have come to expect transparent hygiene practices, flexible ordering options, and even augmented reality menus that minimize touchpoints. Restaurants prioritizing safety while providing a seamless experience are poised to stand out in this new era.

Workforce Evolution:

The restaurant workforce has also seen transformative shifts. The report underscores the challenges faced by the industry in attracting and retaining talent. Creative solutions, such as flexible scheduling and tailored training programs, are being explored to address these issues and create a more sustainable work environment.

Sustainability Takes Center Stage:

Sustainability has emerged as a key consideration for both consumers and restaurants. From sourcing ingredients ethically to reducing food waste, establishments demonstrate their commitment to environmental responsibility. As sustainability aligns with changing consumer values, it also presents a unique market differentiator.

 

A Glimpse of the Future:

The 2023 State of the Industry Report offers a glimpse of a dynamic future where innovation is paramount. By leveraging adaptability, embracing technology, and redefining the guest experience, restaurants are positioned to thrive in the new normal. The report’s insights serve as a compass, guiding the industry toward a reimagined future that capitalizes on evolving consumer preferences while upholding the timeless essence of hospitality.

The restaurant industry’s journey through the new normal is a testament to its resilience and capacity for reinvention. The 2023 National Restaurant Association State of the Industry Report serves as a beacon of insight, shedding light on the strategies that have shaped success in this evolving landscape. Armed with these insights, restaurants are well-equipped to navigate the path ahead, embracing change, seizing opportunities, and carving out a vibrant future in the ever-transforming world of culinary excellence.

 

In a world driven by technological advancements and changing consumer preferences, the fast-food industry is continuously evolving to meet the demands of modern customers. A prominent trend in this evolution is the widespread adoption of self-service kiosks in fast-food chains. These digital touchpoints are transforming how customers interact with their favorite eateries and redefining operational efficiency for restaurant businesses.

Embracing the Age of Self-Service

In recent years, self-service kiosks have taken the fast-food industry by storm. A shift in customer behavior towards convenience and speed has increased acceptance of these interactive terminals. A report from the National Restaurant Association revealed that over 60% of consumers agree that self-service technology makes their dining experience more convenient.

The Convenience Factor

One of the most significant advantages of self-service kiosks is the enhanced convenience they offer to customers. The ability to browse through a digital menu, customize orders, and make payments within a few taps is a game-changer. Kiosks eliminate the need to stand in long queues, resulting in quicker order processing and reduced waiting times – a win-win situation for customers and restaurants.

Personalization at its Best

Self-service kiosks provide a platform for customers to tailor their orders precisely to their preferences. Every detail is at the customer’s fingertips, from extra cheese to no onions. This ensures accuracy and enhances customer satisfaction by delivering orders exactly as desired.

Empowering the Customer

Fast-food chains are using self-service kiosks to empower their customers. These terminals offer detailed nutritional information, ingredient lists, and allergen alerts, enabling customers to make informed choices that align with their dietary needs and preferences.

Streamlining Operations

The advantages of self-service kiosks are not limited to the customer side. Fast-food chains are benefiting from streamlined operations and increased efficiency. With kiosks handling a significant portion of orders, staff can focus more on preparing and serving food. This redistribution of tasks results in smoother operations, reduced human error, and improved customer service.

The Human Touch

While self-service kiosks play a pivotal role in enhancing the fast-food experience, they do not replace the importance of human interaction. Many chains are finding a balance between technology and human service. Staff members are freed from taking orders, allowing them to engage more with customers, address concerns, and ensure a positive dining experience.

The Road Ahead

As the fast-food industry continues to evolve, self-service kiosks will likely remain prominent in restaurants worldwide. With technological advancements, we expect to see more sophisticated interfaces, increased integration with mobile apps, and further personalization options.

Integrating self-service kiosks in fast-food chains is not just a technological trend but a transformative shift in how restaurants and customers interact. These terminals provide unmatched convenience, personalization, and efficiency. As technology continues to reshape the dining experience, one thing is certain – the kiosk revolution is here to stay, redefining fast food for the better.

 

In an era marked by rapidly evolving consumer preferences and economic fluctuations, the restaurant industry faces a challenge that resonates with both customers and business owners alike – menu price fatigue. A recent trend suggests that consumers might be experiencing a sense of weariness when regarding the continuous rise in restaurant menu prices. In this article, we delve into the phenomenon of menu price fatigue, its implications, and strategies that restaurants can adopt to strike a balance between maintaining profitability and nurturing customer loyalty.

Unraveling Menu Price Fatigue

Menu price fatigue, as the name suggests, refers to the growing resistance among consumers toward consistently increasing prices on restaurant menus. With rising costs in labor, ingredients, and operational expenses, it’s no surprise that restaurants have adjusted their prices to accommodate these changes. However, customers’ budgets cannot always keep up with these frequent adjustments.

The Impact on Customer Behavior

The constant rise in menu prices can significantly impact customer behavior. While valuing the dining-out experience, consumers may become more selective about where and when they choose to dine. Frequent price hikes could lead to fewer regular visits, opting for more budget-friendly alternatives instead.

Maintaining Customer Loyalty

To navigate this challenge, restaurants must prioritize maintaining customer loyalty while maintaining profitability. Here are some strategic approaches:

1. Value-Driven Menus: Craft menus that highlight value propositions. Offer bundled deals, special promotions, or discounted meal combinations that provide customers with more for their money.
2. Transparent Communication: Be transparent about price adjustments. Clearly communicate the reasons behind changes in menu prices, such as ingredient quality improvements or sustainability initiatives.
3. Menu Engineering: Strategically design menus to emphasize dishes with higher profit margins. Highlight signature items that offer a unique experience, giving customers a reason to justify their spending.
4. Enhance Dining Experience: Focus on enhancing the overall dining experience. Stellar service, ambiance, and personalized interactions can offset menu price concerns, making customers feel they are getting more than just a meal.
5. Loyalty Programs: Implement loyalty programs that reward customers for their repeat business. Discounts, exclusive offers, or free items after a certain number of visits can create an incentive for customers to return.
6. Feedback and Adaptation: Regularly solicit customer feedback to gauge their perceptions of menu pricing. Use this input to make informed adjustments that resonate with their expectations.

Balancing Profitability and Customer Satisfaction

Balancing the need for profitability with customer satisfaction is a delicate task. Restaurants must be agile in their approach to pricing. Careful consideration of consumer sentiment, market trends, and competitive analysis is essential to make informed decisions.

The phenomenon of menu price fatigue presents an intricate challenge for restaurants to overcome. By focusing on value-driven menus, transparent communication, and enhancing the overall dining experience, establishments can mitigate the impact of rising prices on customer loyalty. Navigating this landscape requires a strategic blend of creativity, adaptability, and a deep understanding of consumer preferences. Ultimately, balancing pricing and customer satisfaction is crucial to sustaining success in a competitive culinary world.

Decades ago, restaurants pioneered basic automation to enhance efficiency – early technologies like cash registers, mechanical calculators, and vending machines streamlined transactions and self-service. Automated coffee makers and buffet setups improved speed and consistency. Conveyor belts presented dishes in early sushi places, and kitchen appliances expedited food prep. Drive-thru windows emerged for faster service. These innovations formed the foundation for modern restaurant automation, showing a persistent drive to increase efficiency, minimize labor, and elevate customer convenience.

In the rapidly evolving landscape of the culinary industry, restaurants are increasingly embracing the transformative power of Artificial Intelligence (AI) to enhance various aspects of their operations. This surge in AI integration stems from its unparalleled ability to optimize processes, enhance customer experiences, and streamline decision-making. From personalized menu recommendations based on customer preferences to efficient inventory management and advanced culinary creativity, AI technologies are revolutionizing how restaurants function. As competition grows fiercer and consumer expectations become more sophisticated, restaurants find themselves compelled to harness AI-driven solutions to stay relevant and deliver unparalleled dining experiences.

 

How Are Restaurants Using Automation in 2023?

White Castle, a renowned fast-food chain, is making strides in embracing AI technology by partnering with SoundHound, a voice AI platform, to introduce voice ordering at more of its drive-thru lanes. This initiative is set to elevate the number of AI-powered drive-thru restaurants to around 100, constituting over a quarter of White Castle’s entire portfolio, by the conclusion of 2024. The company envisions enhancing customer experiences and operational efficiency, with many AI-supported locations operating 24/7.

 

 

Checkers Drive-In Restaurants, a U.S.-based fast-food chain, has partnered with Hi Auto to introduce AI voice technology in its drive-throughs. The collaboration involves deploying Hi Auto’s Spanish-language drive-through AI voice technology across over 350 Checkers and Rally locations. This marks the first instance of bilingual drive-through voice AI ordering in the industry.

Meanwhile, Chipotle founder Steve Ells has devised an intriguing concept for a semi-automated restaurant named Kernel, focusing on automation with a human touch. Securing $36 million in series A funding, Kernel plans to launch in New York City this fall, potentially establishing 15 more locations in the vicinity over the next couple of years. The innovative venture emphasizes plant-based ingredients and automation, yet further details about its unique approach remain undisclosed. These developments collectively underscore the ongoing surge of AI and automation within the restaurant industry, reshaping how eateries operate and engage with customers.

 

How Consumers Feel about Automation

PYMNTS’ exclusive report titled “Connected Dining: The Robot Will Take Your Order Now” is based on a survey of nearly 2,000 U.S. consumers conducted recently. The report delves into consumer sentiments towards various restaurant technologies and the factors driving those opinions. The study found that two-thirds of consumers are not interested in robotics-powered food preparation, with most of them concerned about the potential impact of automation on food quality and personalization. A notable 83% of respondents believed that food prepared by robots would be lower quality and less personalized compared to human-prepared meals. This concern aligns with a previous study that revealed around 4 in 10 consumers perceive a decline in personalized service at restaurants. Despite these concerns, automation is gaining traction in the industry, particularly in kitchen operations. Some consumers are embracing these innovations, especially younger demographics, who are more open to testing new tech, as evidenced by the positive response to autonomous robotic food service kiosks in certain restaurant chains.

As the restaurant industry continues to adapt to evolving consumer preferences and technological advancements, it’s evident that AI will remain a significant and growing component of restaurant operations.

 

 

Sources:

Nrn.com
verdictfoodservice.com
Pymnts.com

The dining experience has evolved beyond savoring delicious dishes to encompass a growing concern among restaurant customers: the emergence of contentious service fees. As more eateries across the culinary landscape tack on additional charges, patrons are increasingly expressing frustration and confusion. These fees, intended to address issues of pay equity and rising business costs, are sparking debates about transparency, fairness, and the overall dining experience.

These charges often show up at the bottom of the receipt, separate from tips for the server or cooking staff. The National Restaurant Association estimates that around 15% of restaurants add these fees. Proposed solutions include requiring businesses to include taxes and fees in listed service prices, similar to European practices. The Federal Trade Commission is exploring regulations to address deceptive fees.

 

Keeping Score

Reddit users in Los Angeles and Chicago have compiled spreadsheets of restaurants with these fees, sparking discussions about their transparency and allocation. These additional charges, often ranging from 3% to 20%, bear labels such as “healthcare surcharge” or “wellness fee,” leaving patrons perplexed. The Reddit spreadsheet highlights service fees in LA that have gained traction, listing nearly 240 establishments and whether the fees supplement server tips.

 

Restaurants Vs. Employees

While some restaurateurs argue these fees ensure fair pay distribution between front-of-house and kitchen staff, restaurant employees contend that such charges often benefit owners more than employees. A class-action lawsuit against Jon & Vinny’s in Los Angeles claims that their 18% service charge doesn’t actually benefit servers. The confusion over these fees, often presented separately from tips, has led to a Reddit-driven effort to track and criticize restaurants imposing them.

What’s Happening in DC?

DC’s dining scene has seen a surge in extra fees, causing customer confusion and frustration. The Office of the Attorney General issued guidance on fee transparency, including examples of compliant practices. These fees have increased due to Initiative 82, eliminating the “tip credit,” pushing restaurants to replace the $5.35/hr. minimum for tipped workers with at least $17/hr. To offset this, many added mandatory service fees, alongside other charges, ranging from 3% to 22%, with vague explanations.

Attorney General Brian Schwalb’s consumer alert in March stressed clear and prominent fee disclosure before orders. The “supplemental business advisory” requires specific fee descriptions, distinguishing whether they support base wages or are extra, like tips. Guidelines mandate prominent fee display on menus and prohibit burying fees in fine print or combining them with unrelated details. Violators may face warnings, refunds, penalties, or practice changes.

Examples of allowed fee disclosures are given, with compliance assessed case by case.

 

Sources:

Ktla.com
thetakeout.com
eater.com
Washingtonian.com
Latimes.com
openai.com

Tipping, a customary practice in many service industries, is a vital lifeline for workers striving to make ends meet. This practice plays a pivotal role in recognizing and valuing the efforts of individuals who provide essential services, such as waitstaff, bartenders, and delivery personnel. Beyond the simple act of leaving spare change or a gratuity, tipping symbolizes a gesture of appreciation and empathy, bridging the gap between the cost of services and the often modest wages these workers earn. In recent years, however, “tipping fatigue” has altered how people feel about leaving tips.

 

How Has Tipping Culture Changed in 2023?

A new Bankrate survey reveals that tipping practices in America vary widely, with 66% of adults holding a negative view of tipping. People express preferences for improved employee pay (41%), annoyance at pre-entered tip screens (32%), and belief that tipping culture is excessive (30%). Additionally, 15% are confused about whom and how much to tip, while 16% would accept higher prices to eliminate tipping.

Although tipping is disliked, it remains prevalent. Roughly 44% of sit-down restaurant patrons tip at least 20%. Tipping patterns differ among services, such as hair stylists, food delivery, and taxis, with generational and regional variations. Gen Z and men tip less frequently, and overall tipping frequency has declined since 2019.

 

Gen Z is Tipping Less

Gen Zers, aged 18-26, are less likely to tip the standard 20% when dining out compared to older generations. The same Bankrate survey revealed that only a quarter of Gen Zers tip 20% or more, in contrast to over half of Baby Boomers who do. The inclination to tip increases with age, with older generations being more generous in various scenarios like dining out, food delivery, and hairdressing services. Gen Z’s different approach might be due to their limited exposure to traditional tipping culture and a more accustomed interaction with pre-entered tip screens at places like coffee shops. While some older adults find tipping excessive, Gen Zers are less bothered by it. About 22% of Gen Zers believe tipping culture has become excessive, while 33% of Gen X and Baby Boomers share this sentiment. The lower tipping tendency among Gen Z could be attributed to lower incomes and a lack of familiarity with tipping norms. Some young adults may also view tipping through a social justice lens, deeming it unfair, but experts emphasize that not tipping where expected hurts individual workers, not just the business.

Tipflation

Americans remain among the world’s top tippers, with customary rates ranging from 15% to 20% of the bill. The prevalence of lower-paying service jobs and reliance on tips for income has led to discussions on “tipflation,” as digital payment systems prompt customers to tip, sometimes exceeding 30%. This trend extends to online orders and remote transactions, with nearly 75% of such interactions requesting gratuity.

The pandemic exacerbated this trend, as patrons tipped more generously to support struggling service workers, reinforcing the societal norm. However, this dependence on tips perpetuates income disparities, creates unpredictability for workers, and contributes to financial insecurity. While tipping offers advantages such as incentivizing excellent service and enabling higher earnings for some, its downsides include burdening customers with expectations, unequal compensation among workers, and the potential for income inequality.

As the conversation around tipping culture continues, finding a balance between fairness for workers and respecting established norms remains a crucial aspect of this evolving landscape.

 

Sources:

Bankrate.com
businessinsider.com

Forbes.com
openai.com

The U.S. Senate and House of Representatives have introduced a new A bipartisan bill called the Credit Card Competition Act of 2023 (CCCA). This bill aims to reduce credit card processing fees for businesses like restaurants, which currently rank as their third-highest cost. The bill seeks to foster competition among credit card processors, specifically targeting the dominant networks of MasterCard and Visa, which are used in about 80% of credit card transactions in the U.S. With the average restaurant paying between $20,000 and $50,000 each year in credit processing fees, this can be the gateway to significant financial relief.

CCCA would mandate the largest banks in the country (those with assets exceeding $100 billion) to issue credit cards with a minimum of two separate networks not affiliated with each other. This mandate would allow restaurant owners with the authority to opt for the most efficient and secure network for processing their credit card transactions.

 

If approved, this law would reduce swipe charges, enhance credit card security and performance, and provide annual savings of around $15 billion for businesses and consumers. Additionally, removing the obligation for operators to cover these inflated swipe fees would enable organizations like restaurants to invest in their staff, carry out essential enhancements to their establishments, and transfer the cost savings to customers.

CCCA is supported by organizations including the National Restaurant Association, International Franchise Association, National Association of Convenience Stores, National Grocers Association, Hispanic Leadership Fund, NATSO, and over 200 state and regional business associations.

Read more about the proposed legislation here.

 

Sources:

gazettenet.com
restaurantbusinessonline.com
restaurantnewsresource.com
restaurant.org
Lofgren.house.gov
Openai.com

The hospitality industry has always been a highly competitive field, constantly seeking ways to attract and retain top talent. Traditionally, recruitment efforts have been the focus, with organizations dedicating substantial resources to finding skilled individuals to join their teams. However, there has been a notable shift in priorities in recent years as the industry recognizes the significance of employee retention and its impact on overall success.

In the past, the emphasis on recruitment was driven by the high turnover rates commonly found in the hospitality sector. Jobs in this industry often involve long hours, demanding work environments, and seasonal fluctuations, leading to a revolving door of employees. The cost of constantly hiring and training new staff members became a significant burden for hospitality businesses. As a result, efforts were primarily directed toward attracting new talent to fill these vacant positions.

However, forward-thinking organizations are now realizing the benefits of prioritizing employee retention. The hospitality industry is beginning to understand that retaining skilled and experienced staff members can lead to improved customer satisfaction, increased productivity, and, ultimately, higher profits. Let’s explore some key reasons why the shift in focus is occurring.

 

1. Enhanced Customer Experience:

   Employees who have been with a company for an extended period develop a deep understanding of its values, processes, and customer expectations. They become more adept at providing personalized and attentive service, leading to an enhanced customer experience. Retained employees are often better equipped to handle challenging situations, resulting in higher customer satisfaction and increased customer loyalty.

2. Knowledge and Expertise:

   Experienced staff members possess valuable knowledge and expertise that can significantly benefit an organization. Their familiarity with internal systems, operations, and industry-specific best practices enables them to contribute more effectively to the business’s overall success. Retaining these employees allows organizations to tap into their wealth of knowledge, ensuring higher quality in service delivery.

3. Cost Savings:

   The financial implications of high turnover rates in the hospitality industry must be considered. Constantly recruiting and training new employees is not only time-consuming but also costly. Organizations can significantly reduce recruitment and training expenses by focusing on retention, leading to substantial cost savings. These saved resources can be reinvested in employee development programs, improved benefits, or enhanced workplace culture.

4. Employee Morale and Engagement:

   High turnover rates can negatively impact employee morale and engagement. Constantly working with new colleagues can create a sense of instability and disrupt team dynamics. In contrast, a stable workforce fosters a positive work environment, promotes better teamwork, and enhances employee satisfaction. Happy and engaged employees are more likely to stay with a company for an extended period and are motivated to deliver exceptional service.

To effectively shift priorities towards retention, hospitality organizations must implement strategies to engage and retain their employees. Here are some fundamental approaches that operators can adopt:

• Comprehensive Training and Development:

  Offering opportunities for skill development and career advancement demonstrates a commitment to employee growth and fosters loyalty. Organizations should invest in training programs that enhance the skill sets of their staff members and provide a clear path for professional development within the company.

• Competitive Compensation and Benefits:

  Offering competitive wages and benefits packages is essential for attracting and retaining top talent. Organizations must conduct regular market research to ensure their compensation packages align with industry standards. Additionally, providing benefits such as healthcare, retirement plans, and flexible work arrangements can significantly contribute to employee satisfaction and retention.

• Employee Recognition and Appreciation:

  Recognizing and appreciating employee contributions is crucial for building a positive work culture. Implementing recognition programs, conducting regular performance reviews, and celebrating milestones can create a sense of belonging and boost employee morale.

• Work-Life Balance:

  The hospitality industry is known for demanding schedules and long hours. However, promoting work-life balance is becoming increasingly important in retaining employees. Organizations should explore flexible scheduling options, paid time off, and other initiatives that prioritize the well-being of their staff members.

 

The hospitality industry is witnessing a significant shift in priorities from recruitment to retention. By recognizing the benefits of retaining skilled and experienced employees, organizations can improve customer experiences, reduce costs, and foster a positive work environment. By implementing strategies prioritizing employee engagement, development, and well-being, hospitality businesses can create a loyal and dedicated workforce that contributes to long-term success.

Restaurants are constantly seeking innovative ways to optimize their operations and maintain high-quality guest experiences. With the challenges posed by staffing constraints, achieving both efficiency and guest satisfaction can seem like a daunting task. However, operators can utilize valuable strategies to help your restaurant maintain an exceptional guest experience while optimizing productivity even with a smaller team.

• Leverage Technology: Embrace the power of technology to streamline various aspects of your restaurant. Implement a robust point-of-sale (POS) system integrating order-taking, billing, and inventory management. This helps reduce manual errors and saves valuable time for your staff, enabling them to focus more on guest interactions and service.
• Optimize Staff Scheduling: Develop efficient team schedules based on peak hours and historical data. Analyze trends and data to ensure you have the correct number of employees during busy times, avoiding overstaffing during quieter periods. Properly trained and well-informed staff can handle increased workload effectively, providing a smooth guest experience. Consider offering part-time or on-call positions, allowing employees to choose shifts that suit their schedules. This approach can help fill gaps while promoting work-life balance for your staff.
• Multi-Tasking Staff Roles: Train your staff to handle multiple roles when needed. For instance, servers who can also assist with cashier duties during slow hours or bartenders who can lend a hand with food preparation. This cross-training ensures flexibility in managing staffing requirements without compromising service quality.
• Explore Automation: Besides technological advances in ordering and payment systems, consider automating certain back-of-house tasks. Dishwashing machines, food preparation equipment, and inventory management systems can improve efficiency, requiring less staff to manage these tasks.
• Simplified Menu and Streamlined Inventory: Reduce the complexity of your menu by focusing on popular and high-margin items. This simplifies kitchen operations and inventory management, making it easier for a smaller team to handle orders efficiently. Additionally, closely monitor inventory levels to avoid shortages and waste, ensuring a smooth workflow.

• Streamline Processes: Review and optimize restaurant workflows to eliminate inefficiencies. Identify bottlenecks and areas where tasks can be streamlined or automated. From food preparation to serving, finding ways to work smarter can significantly boost overall productivity.
• Online Reservations and Order Ahead: Implement an online reservation system and offer order-ahead options. This service enhances guest convenience and allows your staff to better manage table turnover and preparation time, leading to a more efficient service flow.
• Promote Team Communication: Facilitate seamless communication among your staff with digital tools or messaging platforms. Encourage staff to share ideas, challenges, and suggestions. Real-time updates and instant communication help keep everyone informed, minimizing delays and misunderstandings and ensuring a cohesive team effort.
• Encourage Guest Feedback: Actively seek guest feedback to identify areas for improvement. Engage with reviews and comments, both positive and negative, to understand your restaurant’s strengths and weaknesses. Use this valuable insight to fine-tune your operations continually.
• Invest in Employee Development: Empower your team with ongoing training and skill development. Knowledgeable and confident staff can handle challenging situations more effectively, contributing to improved guest experiences. Allow your team to take ownership of their roles and make independent decisions. Encouraging a sense of responsibility can lead to more effective problem-solving.
• Outsource Non-Core Functions: Consider outsourcing non-core functions, such as cleaning services, marketing, or accounting, to external professionals. This frees up your team’s time to focus on the primary goal of delivering exceptional guest experiences.
• Create a Positive Work Culture: Nurture a positive, supportive work culture that values teamwork and recognizes employee contributions. A motivated and contented staff is more likely to go the extra mile to provide outstanding service.
• Prioritize Guest Engagement: Focus on personalized and attentive guest service to enhance the dining experience. Creating a memorable experience for your patrons makes them more likely to overlook any temporary staffing challenges.
• Solicit Guest Feedback: Encourage guest feedback and actively listen to their suggestions and concerns. Address issues promptly and use feedback to improve your operations, ensuring guest satisfaction remains high continually.
• Measure and Monitor Performance: Regularly assess your restaurant’s performance using key performance indicators (KPIs). Analyze data on guest feedback, table turnover, and staff productivity. Use this data to identify areas for improvement and implement necessary changes.
• Collaborate with Local Culinary Schools: Forge partnerships with culinary schools or vocational training programs to tap into a pool of skilled students or graduates seeking practical experience. Offering internships or apprenticeships can be mutually beneficial.

While staffing challenges are common in the restaurant industry, maintaining guest satisfaction is achievable with resourcefulness and innovation. Embrace flexibility, cross-training, and technology to optimize operations with a smaller team. Encourage a positive work culture, prioritize guest engagement, and remain open to feedback. Adopting these strategies allows your restaurant to navigate staffing challenges while delivering outstanding guest experiences successfully. Adaptability and a guest-centric approach are key to thriving in any staffing situation.

 

By Amanda Stokes – Operations & Training Consultant

The restaurant industry has always been a dynamic and fast-paced environment, but the year 2023 has brought forth unprecedented challenges for restaurant owners and managers in staffing their establishments. A combination of factors, including changes in labor markets, evolving employee expectations, and the aftermath of the global pandemic, have created significant hurdles. However, despite these challenges, there are strategies that can help restaurant owners navigate this difficult landscape and ensure the smooth operation of their restaurants.

The aftermath of the pandemic has seen shifts in the labor market. Many individuals have reconsidered their career choices, leading to increased turnover in the hospitality sector. As a restaurant owner, adapting to these changes is essential, including reevaluating compensation packages, offering competitive wages, and providing enticing benefits. Moreover, creating a positive work environment that prioritizes employee well-being can be crucial in attracting and retaining talent in 2023.

The good news is that despite of the recruiting challenges that the industry is facing, some are figuring out how to staff their restaurants with qualified employees. Here are some best practices when it comes to recruiting top talent:

 

• Employee Referrals

Employee Referrals can be a great tool to attract talented employees to your restaurant. Good employees want to work with other good employees, so they generally recommend others that will be a good fit for your restaurant. Your existing employees will be well suited to share why working at your restaurant is desirable, and what they can expect working there. They will also go out of their way to ensure that their referrals assimilate well into the culture and are welcomed by the team.

 

• Collaborate with Hospitality Schools and Programs

Building strong relationships with hospitality schools and vocational programs can effectively tap into a fresh talent pool. Partnering with these institutions for internships, mentorship programs, or recruitment drives can provide you with access to aspiring professionals eager to make their mark in the industry. Also, the National Restaurant Association has created a program called ProStart as a workforce development program for high school students. This program allows students to gain practical work experience before they graduate. You can contact your local restaurant association and see if any local high schools near you offer this program. Many restaurants that partner with ProStart offer internships that lead to full-time employment once they graduate. This opens up an entirely new stream of talent eager to work and gain industry experience.

 

• Pull Good Employees From Outside of Your Area

This may sound harder than it actually is. Job posting boards, including Indeed, LinkedIn, and Zip Recruiter, work well to recruit within your area. However, Culinary Agents allows you to post jobs and search for candidates across multiple cities. There could be someone looking to relocate to your city, especially if you present your restaurant as a great city to work and live in.

• Have a Solid Hiring Plan

Great restaurant operators are always hiring and looking to upgrade talent before it becomes a 911. Focusing on building a strong team is key in avoiding “Panic Hiring,” which can lead to bringing on the wrong candidates that will ultimately not work out. A proactive approach can make recruiting less stressful and more productive.

 

• Know When It’s Time to Go Pro

Sometimes hiring can be a daunting process for restaurant owners and managers that can take precious time away from the day-to-day business demands. Leveraging the help of a recruiting professional to attract and screen qualified candidates can be a great way to streamline the process. Although this may be more costly than doing it yourself, being short-staffed is also costly and can lead your good employees to burn-out and eventually leave you.

So now that you have a roadmap to hire exceptional talent, it is critical that you keep them happy and engaged. Retaining restaurant workers in 2023 requires a multifaceted approach that considers employee well-being, growth opportunities, and adapting to changing workforce expectations. Restaurant owners and managers can increase employee satisfaction and reduce turnover rates by offering competitive compensation, creating a positive work environment, and embracing technology. In an increasingly competitive labor market, prioritizing employee retention will be vital to building a successful and thriving restaurant.

 

• Create a Positive Work Environment

A positive work culture can make a significant difference in retaining restaurant workers. Employees are looking to their employers to care about their well-being, work-life balance, and mental health. Encourage open communication, feedback, and recognition for a job well done. Organize team-building activities and create a sense of camaraderie amongst the team to improve job satisfaction and decrease turnover.

 

• Leveraging Training and Upskilling Programs

In a challenging labor market, it is essential for restaurant owners to invest in training and upskilling programs for their existing team. By empowering employees with new skills and opportunities for growth, you can improve job satisfaction, increase loyalty, and reduce turnover. Encouraging internal promotions and recognizing achievements can help retain talented staff, fostering a sense of loyalty to your restaurant.

 

• Opportunities for Growth and Advancement

One of the top reasons employees leave their jobs is the need for growth opportunities. In 2023, restaurant owners should focus on providing a clear career path for their team. Establishing a system for promoting from within can help your team to clearly see their potential growth within your company.

 

• Competitive Compensation and Benefits

Offering competitive wages and benefits is foundational in attracting and retaining restaurant workers. As the labor market becomes more competitive, keeping pace with industry standards is essential. Consider conducting regular reviews and offering performance-based incentives to reward employees who go above and beyond their duties. Additionally, comprehensive benefits such as health insurance, retirement plans, paid time off, and meal discounts can significantly enhance employee loyalty.

 

• Embrace Technology

Integrating technology into restaurant operations can enhance employee engagement and retention as the world becomes more tech oriented. Consider adopting digital solutions for managing schedules, training materials, and performance assessments. Additionally, invest in modern POS systems and kitchen equipment to streamline workflows, making employees’ jobs more efficient and rewarding. Eliminating obstacles and pain points for your team not only makes them more efficient but also makes them happier.

 

• Flexibility in Scheduling

Work-life balance has become increasingly important for employees in 2023. To retain restaurant workers, consider implementing flexible scheduling options. Provide employees with the ability to swap shifts, request time off or adopt alternative work arrangements when possible. Accommodating personal commitments can lead to a more engaged team.

• Listen to Employee Feedback

Actively seek feedback from restaurant workers to understand their concerns and ideas for improvement. Conduct regular surveys or hold one-on-one meetings to address their needs and preferences. When employees see their feedback valued and acted upon, they are more likely to feel invested in the success of the restaurant and less inclined to leave for other opportunities.

 

Restaurant staffing challenges in 2023 are undeniable, but owners and managers can overcome these obstacles with the right strategies and a proactive approach. By adapting to the evolving labor market, investing in training, embracing technology, and fostering a positive work environment, restaurants can secure a dedicated and talented team that will contribute to their success even amidst the most challenging times.