STAFF: UNDER PRESSURE
June 21, 2018
The present forecast for restaurants is a stormy one: overall industry revenue is small and menu prices far exceed grocery prices. Political pressures, such as petitions for higher minimum wage, make finding and keeping staff difficult while maintaining a profitable business. So, it’s no surprise that staffing is the number one challenge for both bars and restaurants — in fact, 59% of successful restaurant operators are struggling here.1 It’s no secret that a capable staff is at the core of building a positive experience for visitors — from serving high quality food to timely service to an efficient back-of-house. This presents an opportunity for foodservice manufacturers to help operators both in terms of increasing profitability and by helping to meet customer needs despite high turnover rates.
Innovation Remains A Constant
All foodservice manufacturers are overly aware of the need for constant innovation — an obvious observation, but a significant challenge. And in today’s competitive staffing environment, product innovation is as important as ever. Product offerings that are straightforward and have inherent ease-of-use can relieve significant pressure from back-of-house staff. Similarly, products that can condense a complicated, multi-step process into a one- or two-step process can also save operators valuable time and labor. This is especially valuable as labor costs are a significant component of restaurant staffing challenges, with 38% of operators reporting that labor costs are a barrier to their growth.2 Products that are inherently easy to prepare can create a tighter back-of-house experience that translates to faster ticket times. Swift service and table turnover mean operators can satisfy a higher number of customers and lead to higher product sales over time for the foodservice manufacturer. .
Reducing the Training Burden
At 73%, the turnover rate for the restaurant industry is extremely high.3 With new staff coming in consistently, a considerable amount of time is spent on training. Ensuring that every new staff member is on-boarded quickly and comprehensively can be daunting — and expensive. In fact, an establishment can incur costs between $2,000 and $15,000 each time they lose an employee and need to train a replacement.4 This is another opportunity for foodservice manufacturers who can alleviate some of this burden by reducing the amount of hands-on training necessary for their products. This can be accomplished through clear and concise directions on the packaging, easily accessed how-to videos and even in-person training sessions lead by the manufacturer’s sales team. Not every product can be completely intuitive for every single back-of-house employee — this is especially true for innovative products that might feel unfamiliar. Providing resources that outline the best way to prepare a product not only reduces prep time, but also ensures food safety and quality so that the operator’s patron experiences your product the way you intended.
As all leading foodservice manufacturers know, focusing on operator needs and advancing their success can have significant long-term benefits. And building relationships with restaurant staff allows you to capitalize on high turnover rates by creating a positive, lasting impression on staff who can bring you new business as they move from operation to operation.
1 Restaurant Success in 2018 Industry Report, 2018
2 2017 National Foodservice Operators Study, L.E.K. Consulting
3 Job Openings and Labor Turnover Survey, Bureau of Labor Statistics, 2000-2016
4 The Ugly Truth of Employee Turnover, TDn2K, 2017
