Tag : Turnover

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Manage Speed of Service amid High Turnover

Speed of service is one of the most important metrics that are tracked in a restaurant. It has an immense impact on sales. If you’re doing a great job you will maximize sales for your shift. If you aren’t you are losing customers to long lines at the drive thru or register.

It doesn’t make sense to spend the money to acquire a customer just to have them turn around at the last minute and go somewhere else without making a purchase.

In this blog we’re going to focus on employee turnover and how you can still manage speed of service levels and maximize your sales.

Here is the deal:

  1. Employee Turnover has always been high, but employee tenure is the more important measure to understand. Tenure is how long our employees are staying in their jobs.
  2. Because the average employee is staying such a short amount of time we have to re-design how we onboard, train, and operate our restaurants to minimize the effects of turnover on speed of service.
  3. Having access to and using real-time operations data are a key component in reducing employee training costs as well as identifying and remediating issues before they affect speed of service.

7 Shifts, the Scheduling Company, compiled 7 Restaurant Scheduling Stats of 2017. Click on the image below to see the whole infographic. The facts were crazy but these on how long employees on average stay in a job really stood out to me as scary.

High restaurant turnover is an all-encompassing thing, I know this because I’ve lived it. When you have high turnover you don’t have time to think about anything else, you’re constantly engaged in hiring, training, and backfilling positions. All other pro-active things that you want to do for your restaurant get neglected. How can you work on that new menu or special when you have 3 open positions for tonight’s dinner rush. It’s brutal.

The reality is, you have 57 days with a server, 54 days with a cook, and 124 days with your most expensive employee, your manager. These numbers really paint a picture of what restaurant operators are facing.

Now that you see what the average tenure of an employee is; do you still think it is prudent to spend 4 or 5 days on-boarding/training a person that is only going to be around 54 days? That training time for a server/cook could equate to 10% of their entire employment period at a higher than normal hourly wage.

Here is what we have to do in the industry to minimize these effects.

Shift your Training to Focus on Employee Productivity as Fast as Possible

You have an employee that is going to stay 55 days. The difference between 3 to 5 days of initial training is significant. 3 Days of training is 5.4% of their tenure vs. 9% at 5 days. Think about the ROI jump on that employee when you get them productive quicker.

The easiest place to cut training cost is to reduce the initial onboarding and training period. You do it by:

  1. Cutting all superfluous training out of the curriculum and focus 100% on must-have job role knowledge. Ex: Cooks need to know recipes, servers need to know how to use the POS and steps of service. Get new hires into their stations contributing to sales ASAP.
  2. Systematize Everything: Anything that is repeatable has to be in a checklist or in-station Job Aid. You can’t spend a second training people how to remember to do a repeatable task. Instead, you need to teach them that there are processes available to guide them through these tasks as they are doing them and how to use these systems.
  3. Shift to More Daily Training: You have to shift training from a front-loaded multi-day activity and move the non-job role must-have items to a daily format. Pre-shift meetings for all members of the restaurant are a way to still deliver this culture and non-job specific training in a short couple of minute sessions. Repeating this training over time is very effective.
  4. Simplify as much as you can. For instance, and a lot of people have done this, put allergen, gluten, health information right on your menu. That makes it easy for customers to find out what items they can eat and reduces the amount of training you have to provide FOH employees on the menu. For the BOH, reduce as many steps as possible for prep and in your recipes. Anywhere you can find efficiency without compromising quality, you should make the change. A great example is a lot of quick-service restaurants have assembly cards in the different cooking stations, this helps with consistency but can also reduce upfront training time because there is a job aid right in their station. You have to do that because your employees aren’t around long enough to learn super complex processes.
  5. Use mobile devices to your advantage: Offer the ability to engage in training and to complete processes on a mobile device. Processes then become simple to manage as everyone is always working off of the latest version of the process. You can’t mandate that employees use their own phones, you have to provide an alternative, but you can allow them to use their devices to make your business better and their jobs easier and more convenient. Treat their devices as a force multiplier.
  6. Use real-time operations data: Ensure that team members have access to all the data they need to make sure they are shift ready at every location. This includes dynamic corrective actions and job aides for each process. Provide above store leaders with the data they need to hold teams accountable and the ability to lead and coach.

If you follow those steps you will be able to maintain your speed of service levels even in the midst of high employee turnover.

Finding, Hiring, and Keeping Great People Identified as Number 1 Restaurant Management Issue

 

We recently asked our email list of over 9,000 recipients “what was their biggest restaurant operations issue?” The unequivocal 1st place answer was:

Finding, Hiring, and Keeping employees.

Which sucks for me because I don’t have a magic solution to this issue, especially one that I can make money on.

To be a service to you guys, I went and found some articles about hiring and retaining for you and I will link to them below.

When I was a restaurant manager, here is what I used to do to hire and keep employees.  By the way, finding good employees is easy if you can keep good employees because you will get referrals and friends of your current team.

  1. Make work fun. Have fun with your team every shift.
    1. Have shift contests for the FOH and BOH
    2. Make Jokes
    3. Serve good food at the employee meal
    4. Don’t just include the servers of FOH, make sure all team members get to participate in the fun.
  2. Thank everyone and recognize people’s contributions constantly.
    1. Recognizing people is probably the most important thing you can do, just say thank you.
    2. I’ve found that people who feel appreciated are less likely to bounce when things get tough.
  3. Focus on your culture – live it and breath it.
    1. Every restaurant can have a cool culture.
    2. The culture is set by the management team and employees and then reinforced by management.
    3. Own it and make sure every decision and rule that you implement reinforce your culture.
  4. Conduct pre-shift meetings
    1. The pre-shift meeting is one of the most important things you can do to accomplish the first three things on this list.
    2. It is the only time that you get to communicate to your entire team together on a shift basis.
    3. Don’t be lazy and skip it because you are skipping the most effective team building and retention tool you have.
  5. Run a great restaurant.
    1. People forget that operations are the key to everything in the restaurant.  Do you know which restaurants in your area don’t have a turnover problem? The ones that are busy, because they are great restaurants, and everyone that works there is making money, staying busy, and feeling good about their job.
    2. You can do all the other things on the list, but if your restaurant is slow and people aren’t making money, or they are bored, the reality is, they are going to leave eventually.
      1. If they leave, you are never going to get out of the massive turn-over cycle, your service levels and food quality will steadily decline as you will always have a new staff, which will alienate your declining customer base until you eventually go out of business.
    3. Your restaurant operations are the one thing that you are in complete control of, and you have no excuse for not executing flawlessly every shift.

Here are a couple of articles about the restaurant industry’s turnover and hiring issues:

I know it’s hard out there in this market.  Implementing changes is always a slow process, and it requires discipline and consistency.  It is possible to thrive in this market as well.  Focus on the basics, your daily operations on a shift by shift basis.  Focus on controlling what you can control, which is everything in your four walls and ignore the outside distractions.  Take care of your people, and your customers and your business will grow.

If you want to learn how OpsAnalitica can help you run better operations on a shift-by-shift basis, go to OpsAnalitica.com