Rising food and goods costs are a concern for foodservice operators, but labor remains the most pressing challenge. Recruiting qualified staff, providing proper training, maintaining morale, reducing turnover, and managing staffing shortages can feel overwhelming. Yet, effective staff management is vital for smooth operations and directly impacts customer experiences — after all, customers may come for the food but they come back for the service. Today, operators are prioritizing employee development to maintain service levels, even as worker commitment wanes. Datassential’s recently released Labor Keynote report provides segment-specific insights into how operators and consumers navigate labor challenges in foodservice. Here’s an overview of the report, with actionable insights for operators of all types:
Customers’ service views
With widespread and lingering staffing shortages, it can be difficult to maintain a consistent experience for the customer, across all levels of service. And while customer expectations generally increase by segment – they’re least important at c-stores or supermarket prepared sections and most important in fine dining – there is a surprising difference in how important service is across foodservice segments. Consumers say that service matters just slightly more at midscale restaurants than casual dining restaurants. This is perhaps because the food among midscale restaurants is less differentiated, so service plays a bigger role in the experience and selection decision for midscale patrons.
Training investments are paying off
Good news: service speed is improving. Nearly twice as many operators report faster service compared to slower service over the past six months. What’s making the difference? Training. From better POS system training to pairing new hires with seasoned pros, operators are doubling down on front-of-house (FOH) training. And it’s paying off. Consumers consistently rate friendly and attentive service as their top priority, with fine dining patrons especially valuing skilled kitchen staff.
Employee morale matters — a lot
Happy employees make for happy customers. Around three-quarters of diners say they’d pay more or visit more often at places with high employee morale. Positive energy from foodservice employees can contribute directly to the bottom line with increased foot traffic and the ability to charge higher menu prices. Across segments, about 3 in 4 consumers say they are either willing to pay more or visit more often the locations that have good employee morale. Perks like staff outings, family meals, and even mental health days might seem like extras, but they’re essential investments that boost both employee morale and the bottom line.
Shifting perceptions of foodservice careers
Here’s the reality: many hourly workers see foodservice as a dead-end job. That’s a problem. In fact, 43% of operators say the perceptions of foodservice jobs as “dead-end” jobs makes finding hourly workers harder. One solution? Highlighting advancement opportunities and celebrating employees who work their way up can help change this narrative. When workers see a path forward, they’re more likely to stay dedicated and grow with the business.
Operator labor solutions
Paying competitively is key to attracting talent, as offering higher wages can significantly improve recruitment efforts. Smart training is equally important, with a focus on both front-of-house (FOH) and back-of-house (BOH) teams to enhance service and customer satisfaction. Boosting employee morale is another critical factor, as a happy team tends to be more productive. Additionally, showcasing opportunities for career growth can help position foodservice as a long-term career rather than just a job.
The labor landscape in foodservice remains complex, but with strategic investments and a focus on creating rewarding career paths, operators can navigate these challenges and build stronger teams. For an industry centered on hospitality, the investment in people is an investment in success.
Samantha Des Jardins is the Content Marketing Manager at Datassential.
Click here to get a free preview copy of the Labor Keynote report. To get access to the full report, reach out to us here.