Restaurant Industry Current Facts
ChefCentives system is a lateral program based in human psychology and modern management theory, recognizing that the modern workforce is intrinsically motivated by autonomy, mastery, & purpose.
Autonomy is the urge to direct one's own life
Mastery is the desire to excel at something that matters
Purpose is the yearning to contribute to something that is larger than ourselves
Companies who understand this about employees are reaping the benefits in the bottom lines of their businesses. We can help you implement a new staffing strategy that works for the long-term plan of your business.
See The Bottom Line Facts Below
The 100-year-old Brigade system that is the basis of many restaurant kitchens is a major contributing factor to kitchen turnover. Its flat hierarchy doesn't promote the growth of cooks through the kitchen that would allow them to acquire new skills in a vertical fashion.
Traditionally speaking, if the chef and the sous chef have a system under them that works, then they will not disturb it. For example, if they have individual cooks who excel at particular tasks at particular stations, then they will tend to keep those cooks at the tasks they excel at. They will be extremely hesitant to move people around from station to station and disturb the status quo.
The result can be frustration for the cooks and they may look for other opportunities elsewhere.
The End Result Is Staff Turnover.
What are the hidden costs associated with turnover in the restaurant industry?Time and money wasted on posting job listings Interviewing process Onboarding processes Constant schedule modifications of changing employees Inconsistent food standards and resulting waste Lower employee morale Overstaffing for training purposes Wasted food on errors and practice Production loss Hidden fees like staff linens & loss of equipment
What is the #1 problem for restaurants in the US today?Employee turnover is the biggest problem in the restaurant industry today with turnover rates of over 110% annually. The average restaurant in the U.S. with a revenue of $1M loses $147,000 each year. If we can save half of that amount restaurants will be saving an average of $73,500 per year. According to a recent study from Cornell’s School of Hotel Administration, the cost of losing and replacing one hourly employee can be as high as $5,864 per employee. If your restaurant is maintaining a 75% annual employee turnover rate, you’re potentially losing $428,072 or more annually as a result.
What is employee turnover?Employee turnover is the act of replacing an employee with a new employee. A restaurant's biggest asset is its people, and its greatest expense is its payroll. Employee satisfaction will create a better culture, resulting in better productivity. Food costs, the second greatest expense in a restaurant, will drop with a more productive staff that produces less waste.
What are the main contributing factors of turnover?Bad hires Poor training methods resulting in bad food experiences for the customer Unmotivated employees who envision no career path or the resulting pay increases