6 staff retention strategies for modern restaurants

In an increasingly competitive foodservice industry, businesses are turning to innovative staff retention strategies to keep their staff motivated and engaged. From small cafes to large restaurant chains, managers are implementing strategies like flexible scheduling, employee recognition programs and opportunities for career advancement.

By offering comprehensive training, fostering a positive work culture and providing incentives such as employee discounts or bonuses, establishments are aiming to reduce turnover rates and enhance productivity.

Staff retention strategies start with onboarding

Staff retention strategies may seem difficult, but they often start with the simplest of tasks. Onboarding starts on day one.

Give employees a warm welcome on their first day. Introduce them to the staff on duty, and take the time as a manager to ensure the employee has the knowledge to start their positions off right.

Consider encouraging mentorship across the board. If an employee has mastered the grill, have that employee show the new hire exactly how he or she has mastered that task, how long it took he or she to accomplish that feat and ask the new hire what job they’d most like to start learning first.

Train the trainer

Investing in manager training is one way to mitigate turnover, according to Rachael Nemeth, CEO of Opus Training. Restaurants live and breathe by their managers, but managers are the No. 1 reason why employees leave.

“We’re seeing a big trend is soft skills training this year,” Nemeth said in a phone interview, “but what can make a bigger impact is teaching your managers to be better teachers.”

Are managers really making an impact when they’re teaching employees how to count the cash register, how to make pizza dough or how to greet customers? Managers should take into consideration that adult learners have different needs and preferences compared to younger employees. Acknowledging different learning styles can help with staff retention by adapting their training methods to fit the skills and needs of individual employees.

“People are more likely to stay because they’re feeling heard and listened to,” Nemeth said. “Asking employees how they like to learn is one of those ‘train the trainer’ tips that makes a big difference in managers just being more effective teachers.”

Retain employees with a better work-life balance

After pay and benefits, employees say they value a work-life balance. Companies that offer a meaningful work-life balance often see an increase in staff retention and a decrease in employee turnover, according to Natalie Dopp, chief people officer at HireVue.

Allow employees to schedule consecutive days off when possible for vacations and other events.

The goal is to create a healthy work environment. This starts with management and owners. Restaurants run long hours, and employees in the field are frequently burned out. Switching jobs tasks occasionally, meaning employees can be cross-trained to work multiple jobs in the kitchen, can keep employees refreshed and continually learning.

Offer competitive hourly wages

Wages are often a reason why employees leave an establishment. The restaurant down the street offers 50 cents more an hour and it’s alluring, especially with other factors at play like work-life balance and bad managers.

The federal minimum wage is currently $7.25, but many restaurants are paying upward of $15-$18 as part of staff retention strategies. The cost of living should be a large factor when offering competitive wages.

Effective Jan. 1, 2024, California raised their minimum wage to $16 for all employer, with fast food workers making $20 beginning April 1. This applies to chain restaurants with 60 or more locations across the nation and puts restaurant workers in line with other occupations.

What are your competitors offering? If you’re not offering wages at the top of the stack, you could lose employees. When was the last time you compared your compensation packages with those of your competitors?

“If it’s been a while, it may be time to do some research and adjust your pay and benefits packages in order to be more competitive in the market and ensure you retain the best talent,” Dopp said. “The cost of looking for a new hire is X — so it may be more cost effective to increase the pay of your current employees.”

Nemeth said pay transparency can be controversial, but sometimes a restaurant can retain employees if they’re transparent with their pay, about where employees are and where they can grow.

Retain employees by promoting employees for internal jobs

Promoting your internal employees is a great way to acknowledge their hard work and dedication.

Managers should be aware of employees’ performances and should consider internal employees for positions first before hiring outside the company.

It can also help foster employee loyalty and build a motivated and innovative workforce that can help your company stay ahead of the competition,” Dopp said in an email interview. “Use multiple channels, like email, company intranet or a company-wide announcement to inform your employees about new positions.”

If employees seem interested in a new position, managers should offer them advice on how to prepare for the new position and should consider all internal candidates before seeking outside help.

Nemeth said restaurants are starting to put a lot of time and effort into career pathing, but “that should come with what the economic opportunity that that training and additional training can yield,” she said. If there’s no additional pay with a job move, be transparent about that as well.

Offering benefits helps retain employees

While a restaurant is probably not going to offer full benefits to hourly workers, there are other benefits that can help in staff retention strategies as well.

Offering parental leave, wellness programs, gym memberships and sick days are valuable staff retention techniques, said Dopp.

Nemeth said brands don’t have to spend a lot of money on benefits, but even offering just a dental plan can help staff feel appreciated.

Following these staff retention strategies can help you keep employees — and ultimately, customers — happy.