It’s yet another reason keeping quality employees engaged is a deal breaker for brands.ħshifts, a scheduling software platform, surveyed about 2,000 restaurant professionals, everyone from cooks to servers to juice bars and pizzerias, to determine what makes them happy in their restaurants, and what managers could do to improve workplace satisfaction. So the Catch-22 unfolds: Can restaurants afford to pay this added labor cost? If not, can they afford to operate with less staff and still remain competitive? In the company’s Seattle market alone, wage costs jumped nearly 70 percent in the past three years from $9.47 to $16. It had revenues of $176 million in 2018, a percentage point decrease from the prior year. And this at an operation already laced with razor-thin margins. Divide that by 1,886 part-time hourly employees and you’re looking at $5,623 per part-time employee.
Rising wages pushed annual wage costs up by $10.6 million. filed for bankruptcy, citing “progressive wage laws.” The multi-concept company’s chief restructuring officer David Bagley presented the problem in simple math: Just this weekend, Sun Capital-owned Restaurants Unlimited Inc. All of these problems lead to an understaffed operation and a customer-experience proposition that falls short of the company guidebook.Īnd, of course, this is all becoming more pressing as the labor pool tightens and wage pressures rise. And one bad server or cashier can punch a digital black eye into your business that won’t heal easily.Īlso, unhappy employees foster a lack of accountability in restaurants. Restaurateurs can debate the merits of these review sites for ages, but it doesn’t change the value of consumer behavior. Nearly 65 percent said they look to Google. Per a 2018 study, roughly 45 percent of consumers said they were likely to check Yelp reviews before visiting a business. ReviewTrackers noted that Yelp averages more than 178 million unique visitors every month across its mobile, desktop, and app platforms. Poor service often leads to poor reviews, which deter customers before they even give restaurants a shot. Turnover is costly from a balance-sheet perspective (as much as $14,000 for a single general manager, per TDn2K), but there are also less countable issues. Displeased employees are a quick recipe for operational disaster. No matter which direction you dissect the labor battle from, retention remains the hot zone.
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