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Unique Restaurant Promotion Ideas

4 Ways to Improve Your Restaurant Turnover Rate

 According to the National Restaurant Association, restaurant turnover across the entire food and beverage industry is around 75%. This is the highest level since the Great Recession after bottoming out at 57% in 2010. 

This means you are not alone with this problem. It is naturally high due to the prevalence of a teenage workforce and competition of other jobs right down the street. According to the Center for Hospitality Research at Cornell, the cost of employee turnover average around $5,864 per person for a front-line employee.
This is how that breaks down:

  • 3% Pre-departure $176
  • 20% Recruiting: $1173
  • 11% Selection: $645
  • 14% Orientation & Training $821
  • 52$ Productivity Loss: $3049

Luckily there are ways that you can improve your restaurant’s turnover rate and improve your overall profit at the same time. The strategies outlined in this blog force you to look at yourself as a manager and a leader. Three out of the four strategies require no monetary cost, just changing your though-process.

Fair Wage

This is always a tough conversation to have with a restaurant owner, but if you pay better or equal to the competition you’ll attract the best talent to work for you. You’ll also show all your employees across the board how valuable their position is to your restaurant. Not only are you showing value in the position, but they’ll want to work hard to keep it. If they’re getting paid a decent amount, why would they leave your establishment to the joint paying minimum wage down the street?

When employees are paid well; it increases motivation, employee loyalty, efficiency, and overall job satisfaction. Additionally offering incentives like bonuses and commissions can help motivate your employees. When employee loyalty increases you won’t have to spend more time and money searching for replacements and training them too. Paying more doesn’t just increase motivation, but efficiency is improved naturally as employees stay there longer. That means more money in your pocket in the long-term.


Treat them like Human Beings

Another way to improve restaurant turnover is by treating every employee like a person and not like a replaceable cog, you will increase their overall engagement and involvement in your restaurant. The first place to look is in your employee handbook. They should be simple guidelines for your expectations at work rather than legal jargon telling your employees what they can not do. Your employees are adults so treat them as such. We see too often that handbooks include what clothes you can’t wear, what they can’t post on social media, and everything else under the sun what they can not do. Focus on your restaurant’s core values and what the expectations of how to act are.

Another great rule of thumb to live by is praise in public, discipline in private. Even the best employees make the occasional error and as a good owner or manager, it is your job to sit down with that employee and educate them. Education can include re-training or revisiting policies and protocols that were clearly missed. Some managers run the concern of getting take advantage of so they rule with an iron fist. If this is your thought process, you should re-consider who you’re hiring.

Appoint Responsibilities

Assigning responsibilities to your employees not only boosts motivation and self-worth for your employees, but improves overall efficiency. Rather than having to worry about every minuscule task for your business, learn to delegate and trust. This is very hard for a lot of business owner’s as their restaurant is their child. They have been running the show since they registered the name with their state. However, delegating responsibilities to managers or staff that you trained will free up your time and make your employees care about their job more.

Issuing responsibilities give each person their own sense of ownership as they will become invested in their project and take pride in their quality. Without assigning new responsibilities, employees grow disinterested and detached from the overall business. Leaders should recognize and praise the successful completion of tasks in front of other co-workers. You must tow a fine line of balancing work across the board as to avoid resentment and feelings of favoritism from your employees.

Avoid Micromanaging

 Micromanagement is a management style whereby a manager closely observes and controls the work of his or her subordinates.  Micromanaging decreases productivity, reduces innovation, lowers morale, creates higher staff turnover, and loses trust. Trust is the foundation for any successful personal or professional relationship. As stated above, your employees are adults and need a manager and not a babysitter. A manager’s job is to provide guidance, support, and to facilitate a healthy environment where employees will perform their best.

There are ways you can stop micromanaging your staff. One helpful strategy is to physically removing yourself from the group which is hard to do in a restaurant. You should manage your employees expectations, not their tasks. This means letting them know what is expected overall rather than covering every minuet task. Try building a culture with transparency. Rather than telling your staff what they need to do, try telling them why they should be doing it for the business. It can even help to ask your employees how they prefer to be managed. The best leaders are constantly getting feedback from their employees. Every employee is their own puzzle that you are working to solve.


We hope you enjoyed our 4 Ways to Improve Restaurant Turnover! Check out more blogs on our site!

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