Technology

5 ways tech can improve restaurant employee retention

Adobe

April 11, 2023 by Mo Chaar

Amid ongoing labor shortages in the restaurant industry, business owners need to appeal to the needs of employees by streamlining back-of-house operations, improving communication and more.

According to the Washington Post, the restaurant and hospitality industry is still down 500,000 jobs from pre-2020 levels. The fallout of "The Great Resignation" in 2021 still lingers, as data from the Bureau of Labor Statistics finds that restaurants have seen the largest number of resignations of any employment sector, with the year-over-year quit rate rising from 4.8 to 6.9%.

In this challenging time, restaurant operators can leverage their technology stack to enhance overall customer and employee experiences, thus creating a higher level of employee retention in the short and long term. Tech can improve the employee work experience by eliminating repetitive tasks, reduce error rates which lead to higher guest satisfaction and tips, speed up order entry, support employees in servicing customers and more.

1. Creating a more enjoyable and efficient experience

With the right technology in place, restaurant operators can ensure a smooth and seamless experience for all from the customer to the kitchen staff.

An omnichannel POS and online ordering platform, for example, allows customers to place their orders ahead of time and avoid long lines, while employees can focus on fulfilling orders instead of taking them. Mobile payment systems can also reduce wait times and eliminate the need for customers to wait for their checks. Additionally, these systems can collect data on customer preferences and behavior, allowing restaurant operators to develop personalized promotions and experiences.

With a more streamlined and efficient process in place, employees will not only feel empowered to do their best work but will also feel like their efforts are not going to waste, thus improving retention in the long-term.

2. Reduce processing time and human error

Another way restaurant operators can leverage their technology stack is by tapping into the data a POS system provides. By analyzing historical POS data, business owners can optimize and automate tasks such as inventory management, staff scheduling and table assignments. Ensuring larger teams are available and prepared for busier times of the day or week, for example, can reduce processing time and eliminate many of the challenges and negative experiences that may arise if employees feel as though the restaurant is understaffed.

This type of automation also grants restaurant owners the ability to hire less-experienced employees without needing to worry about potential pitfalls down the road. By simplifying processes through automation and data, restaurant owners no longer need candidates with five-plus years of management experience to organize their staffing schedule, for example — they just need to train someone on the POS system. This opens up their prospective labor pool significantly, which is increasingly valuable in today's tight market.

3. Increase tips for employees.=

POS systems can offer several features that help increase tips for employees. For instance, some POS platforms allow customers to add a tip before completing their payment, making it a more convenient and easy process. This feature also eliminates the need for employees to manually calculate tips, reducing the risk of errors.

A strong omnichannel POS system can also provide data on customer behavior and preferences, which can be used to make data-driven decisions to enhance the customer experience. For example, data on the most popular dishes or drinks can help restaurant operators make recommendations to customers, increasing the chances of an upsell and more tips for employees. Real-time analytics and reporting also grant restaurant operators the ability to track the success of different promotions and marketing campaigns to increase sales and, ultimately, tips for hard-working employees.

With take-home pay being one of the leading causes for the steadily-growing quit rate and ongoing labor shortage within the restaurant world, higher tips can go a long way in improving employee retention for restaurant owners.

4. Assist back-of-house staff

A kitchen display system, which can display real-time orders and cooking times, is another powerful tool in the tech stack as it helps the back-of-house team to prioritize orders and ensure that food prep is optimized. For example, the system can alert the team when an order is taking longer than usual, allowing them to quickly address any issues and prevent delays in service. It can also notify staff when an item in an order should be made — if a customer orders a steak and salad, the person on the salad station would receive a notification to start the salad when the steak is almost ready so they are timed to be completed at the same time.

In addition to monitoring cook times and processes, a KDS can also help streamline communication within the kitchen. The system can display modifications or special requests for individual dishes, ensuring the kitchen staff can quickly and easily accommodate these requests. This can also help prevent errors and reduce the need for the front-of-house staff to relay information between customers and the kitchen.

All of these benefits not only result in happier customers (and, therefore, potentially higher tips) but also a more organized, efficient and pleasant working experience for both front-of-house and back-of-house staff — factors that are essential for creating stronger employee retention in today's industry.

5. Create a seamless experience from order to payment

In today's world, both consumers and employees are looking for low-touch, high-tech experiences. With a contactless online ordering system, customers can place their orders ahead of time, avoiding long lines and reducing the need for face-to-face interaction with employees. Additionally, customers can pay for their orders through the mobile app or at a self-ordering kiosk, eliminating the need for physical payment methods and further reducing the need for contact.

Considering many former restaurant workers point to lingering fears of COVID-19 as one of the reasons they left the industry, investing in contactless tech can be a great way to appeal to the changing wants and needs of prospective employees.

In conclusion, technology can be a game-changer for restaurant operators looking to improve employee retention. By utilizing omnichannel POS systems, contactless payment methods and back-of-house management systems, restaurant operators can create a workplace that is engaging, supportive and rewarding for their employees. In doing so, they can reduce turnover rates, improve productivity and ultimately, drive long-term success for their businesses.

About Mo Chaar

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Since joining Givex in 2007, Mo Chaar has helped the company expand its North American footprint. He began his tenure as a Business Development Manager before becoming Vice President of Sales for North America, and then moved to his current role of Chief Commercial Officer. In this role, Chaar oversees commercial strategy and development worldwide as well as managing the sales teams within North America. His experience in gift card, loyalty and POS has played a pivotal role in the success of some of Givex’s largest partners.

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