By Adoniram Sides
It’s no secret that the restaurant industry has some of the highest employee turnover statistics across all industries in Canada. While that’s been the norm for quite some time, the industry continues to suffer from elevated levels of turnover in a post-pandemic world. Restaurants are already struggling with maintaining narrow profit margins and changing consumer behaviours, so adding a staffing crisis on top of that can be the nail in the coffin for many small businesses. Fortunately, there are some strategies that help mitigate the retention challenges facing restaurant owners, and they can begin with some technology implementations.
Let’s start with the stark reality. Recent data revealed a staggering 75.8 per cent jump in employee turnover when comparing data from April-June 2022 to April-June 2023, indicating the staffing shortage at restaurants isn’t easing and efficiency is more important than ever. Restaurants Canada also recently reported that one-third of restaurants are operating at a loss due to the high costs of food, a lack of available labour, and new rules making it harder to turn a profit. In order to survive, restaurants need to think about how to streamline their operations, to ensure time is being effectively utilized both from an operational standpoint and from a customer experience perspective.
Amidst these challenges, technology emerges as a crucial ally. Integrating advanced systems for staff scheduling offers tangible benefits. For example, in the case of Bar 404 in Toronto, they have been able to make quicker data-backed decisions, have cut back over 83 per cent of their time in inventory management, and saved six to seven hours per week on staff scheduling. This not only means more time to focus on the business, but also a cost savings of roughly $500 a week.
There are also continual residual benefits to linking technologies together, like Bar 404 has done with its POS and scheduling software. We’ve found that employee tenure at restaurants using these tools together has yielded 12 per cent higher than the industry average; meanwhile, restaurants themselves are spending an average of 18 per cent less on labour costs.
Restaurants looking to emulate these operational efficiencies should start by reviewing several core areas of the business:
- Optimizing labour scheduling:
- Develop a sophisticated system that integrates real-time sales data with labour targets, enabling dynamic adjustments to staffing levels for maximum efficiency.
- Implement algorithms that analyze historical sales patterns and labour requirements to forecast future needs accurately.
- Utilize predictive analytics to anticipate peak hours and allocate resources accordingly, minimizing overstaffing and understaffing scenarios.
- Employee engagement tracking:
- Implement a comprehensive employee engagement tracking system that monitors various metrics such as productivity, satisfaction surveys, and attendance records.
- Utilize sentiment analysis tools to gauge employee morale and identify areas for improvement.
- Implement recognition programs based on performance metrics to incentivize high engagement and foster a positive work environment.
- Fast & accurate payroll processing:
- Integrate payroll software with time and attendance systems to automate data synchronization and reduce manual entry errors.
- Implement real-time data validation to ensure accuracy and compliance with labour regulations.
- Utilize machine learning algorithms to streamline payroll processing and identify anomalies or discrepancies proactively.
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- Mitigate food costs:
- Employ advanced inventory management software to track stock levels, monitor usage patterns, and identify potential areas of waste or inefficiency.
- Implement predictive analytics to anticipate fluctuations in demand and adjust ordering quantities accordingly.
- Utilize data-driven insights to negotiate better pricing with suppliers and optimize the supply chain for cost savings.
Embracing technology isn’t merely a matter of convenience – it’s a strategic imperative for survival and growth that can help restaurateurs navigate turbulent waters with greater resilience and agility. In doing so, they not only mitigate immediate challenges but also position themselves for long-term success in an ever-evolving landscape.
As Senior Vice President, Hospitality, Adoniram Sides manages Lightspeed Commerce Inc. global hospitality product portfolio, leading teams from North America to Australia. His leadership is backed by a solid foundation of experience in product development and technology with over 10 years of experience building tools and providing data for the restaurant, hospitality, and events industries.
