Is your approach to overcome labor shortage comprehensive enough?

The ever-evolving hospitality sector is confronting numerous challenges. A major issue plaguing the hospitality industry is declining growth over the past three years, alongside a significant labor shortage posing another pressing issue. Many might assume that COVID is to blame, yet these issues have persisted even before the pandemic. A 2017 report by Oregon State University shows that the hospitality industry was grappling with labor shortage long before the onset of COVID-19, inhibiting operational efficiency and discouraging investment and expansion.  

However, COVID exacerbated the situation further. As the tourism and hospitality industry gradually recovered from the impacts of COVID and restrictions eased, consumers embraced "revenge travel," resulting in a surge in demand for leisure and hospitality services.

According to the National Restaurant Association (NRA) the employment figures within eating and drinking establishments as of April 2024 have exceeded the pre-pandemic peak of February 2020 by 40,000 jobs, marking an increase of 0.3%.

Despite the promising recovery in employment numbers, hotels are contending to fill vacancies. Recent findings from the American Hotel & Lodging Association (AHLA) reveal that over 72% of hotels surveyed are experiencing staffing shortages. Shortages in the hospitality workforce may raise worries about customer dissatisfaction.

Knocking down the roadblock with a multi-pronged approach

Restaurant turnover is an undeniable reality. It encapsulates various scenarios where staff members may depart from their roles. This turnover can stem from multiple factors, ranging from an employee's lack of alignment with the restaurant's culture to personal career aspirations and life changes.

Despite the efforts put forth in recruitment, training, and retention strategies, turnover remains an ever-present aspect of restaurant management. Retaining existing employees and focusing on operational efficiency can significantly address the issue of high turnover rates and ensure continuity of staffing. 

• Retaining existing employees: As per the AHLA survey conducted in January 2024, over the past six months, 82% of respondents chose to increase wages, 59% embraced work-life balance by offering flexibility with work hours, and 33% enhanced employee benefits. However, 72% found it challenging to fill vacant positions.
  
  These challenges can be effectively tackled through strategic initiatives. Investing in online training and development opportunities for existing employees in your fine-dine restaurants can boost job satisfaction and loyalty. For example, wine education for servers will enhance their expertise, boost confidence, and improve customer service, leading to a more fulfilling work environment. Increased knowledge and skills in wine create a sense of pride, engagement, and loyalty among staff, consequently reducing turnover rates and fostering staff retention in restaurants.

• Enhancing operational efficiency involves streamlining processes, optimizing workflows, and leveraging technology to reduce workload burdens and enhance employee satisfaction. By identifying and addressing bottlenecks or inefficiencies, you create a smoother, more manageable work environment that promotes employee retention. This might involve implementing new software systems for inventory management, POS management, and P&L review to streamline operations and free up time for employees to focus on delivering exceptional service.
  
  Tech solutions like restaurant inventory and ordering software emphasize efficiency improvements, enabling it to achieve higher productivity with the existing workforce. Investing in advanced digital restaurant tech liberates additional manpower, enabling them to handle a greater volume of orders. It's crucial to order the correct quantity to capitalize on volume discounts offered by wine vendors. Utilizing wine program management software like Sommcloud can assist your management team in seizing this opportunity, ensuring you secure the best price for your wines. 

Embracing the inevitability of restaurant employee churn rate means recognizing that change is inherent in this dynamic culinary landscape. It prompts restaurant stakeholders to continually reassess their strategies and cultivate a workplace culture that balances stability with adaptability.

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At Sommcloud, we provide you with a restaurant ready wine list that can stand up to the best in the country. We leverage data, not opinions, to source wines that sell in your region, assuring your wine list is a powerful financial tool.