Restaurants have always dealt with high staff turnover, yet restaurant managers – typically more established in their careers and with fewer opportunities to move to competitors – have traditionally stayed in their roles longer. However, post pandemic, a concerning new trend has emerged; restaurant managers departing their roles at a similar rate to junior staff. This poses a problem for restaurant owners and operators since these roles have broad responsibilities and often act as a repository for organisational knowledge on everything from scheduling to inventory. So, why are managers leaving, and what can operators do to prevent this churn?
What’s prompting this shift?
1. High-stress environments
The restaurant management role requires an intricate balancing act, juggling staff coordination, people management, customer service, inventory management, and budgeting. It’s a stressful situation that can quickly lead to burn out. A recent study found that 48% of restaurant managers said they felt burned out, with two in five corporate leaders citing manager burn out as a key disruptor to smooth operations.
2. Long working hours
Hospitality is an industry that operates around the clock, 365 days a year. This can place huge pressure on staff, who often find themselves working irregular hours and holidays with limited time off. Poorly managed, this has a detrimental effect on work-life balance – another contributor to burn out – and can prompt managers to seek positions in venues with more predictable hours.
3. Limited advancement opportunities
The restaurant manager role is a critical one and the temptation to leave high performers in role, rather than promoting them elsewhere in the group, is an easy one to give in to. This in turn perpetuates the perception that there is limited upwards mobility within the industry. The skill set that makes managers invaluable in a restaurant environment – organisation, empathy and critical thinking – is widely transferable, and can lead ambitious individuals to seriously consider opportunities in other fields where career progression seems more attainable.
4. Low compensation
Restaurant manager salaries often fail to reflect the challenges of the role, particularly given the current need to navigate ongoing issues such as labour shortages, supply chain restrictions, and rising operational costs – much of which fall to managers to mitigate.
How to retain top managers
- Invest in professional development: Promoting top talent isn’t always an option – particularly for small or independent operators – but it’s not the only development opportunity available to staff. Continuous training, a development plan, and support from senior management can help to increase manager retention while growing the skills available to the business.
- Offer competitive compensation: Compensation is more than simply a salary, enhanced benefits such as gym memberships, private healthcare, child care vouchers, or performance related bonuses increase the total value of a compensation package to individuals, ensuring they feel appreciated and helping to keep them engaged and committed.
- Provide flexible schedules: Fixed scheduling, split shifts or falling into the trap of routinely scheduling high performers for busier shifts are all common contributors to overworking and burn out. Ensuring staff have appropriate down time between shifts and the flexibility to achieve a work-life balance can reduce turnover.
- Automate scheduling tasks: Managers who feel overwhelmed are more likely to leave. By implementing an automated scheduling solution using AI-driven forecasts and a compliance rules engine, managers can decrease the time they spend scheduling by up to 30%.
- Reduce time spent on inventory management: In addition to hours spent on weekly schedules, managers also handle inventory orders to ensure they have what they need and minimise waste through spoilage. Automated inventory management solutions that reduce hand counting, manage ordering, and handle returns can reduce tasks such as stock counting by 80%, saving managers a significant amount of time on mundane jobs.
- Foster a positive work culture: A positive work environment encourages communication, collaboration, and respect. Regular recognition and appreciation efforts can also significantly impact retention rates. Genuine gratitude can foster a sense of belonging and loyalty among managers and the wider workforce.
Our fully integrated cloud-based workforce management software is designed to meet the unique needs of the hourly workforce.
Conclusion
Managers play a vital role in helping restaurants grow profitably, and operators can’t afford rapid turnover in this position. A restaurant’s success depends on nurturing and retaining talented managers to ensure consistent operations, high customer satisfaction, and overall profitability. By understanding the root causes and implementing targeted strategies for retention, restaurant owners can build and retain a skilled managerial team that contributes to the long-term success of their establishment.
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