Bar Operations Made Easy: Increasing Employee Retention

Staff retention has always been a constant pain point for managers in the food and beverage industry. In 2016, the National Restaurant Association reported a 61% average turnover rate, with that number climbing to 66.3% just before the COVID pandemic. The U.S. Bureau of Labor Statistics stated that of that 66.3%, around 47% of the turner was due to "voluntary separation" by the employee. The remaining percentages were caused by factors such as layoffs, transfers, and retirements.

The food and beverage industry is not for everyone. Long nights on your feet, hot kitchens, and unruly guests can break even the strongest willed workers after a while. Despite these valid reasons for switching careers, much of the retention issues that hospitality outlets face can be avoided or mitigated.

Financial

Let's be honest here, no one works for fun. While someone can genuinely enjoy their work, at the end of the day they need to to put food on the table. Offering competitive wages compared to other businesses around you, along with raises based on seniority or performance can help mitigate staff leaving for better financial opportunities. Fair tip-sharing practices keep employees feeling like their hard work is properly rewarded, and has the added benefit of increased guest satisfaction. Additionally, be sure you are following local laws regarding tip-sharing practices.

Non-Financial Benefits

While a 401k and Dental would be nice, it isn't very feasible for most F&B outlets to offer this to their employees. One of my favorite non-financial perks I have experienced at places I have worked has been family meal or at the very least, discounts on food. Family meal doesn't have to break the bank either, using ingredients that are about to turn, bulk pasta and sauce, or ordering a pizza are simple ways to keep staff fed and happy. And let's be frank, a free hot meal trumps a crappy, sweaty, packed at home ham sandwich any day.

Values and Culture

The hospitality industry isn't generally known for having the best work environments. The long, stressful hours can be a breeding ground for toxic work cultures and abuse. Defining your establishments values and making sure employees are aware of them, both at orientation and throughout employment, can set a baseline of what behavior is expected. Make sure your staff are aware of ways to report harassment, bullying and general complaints, whether that's through an HR department or another point of contact.

The food and beverage industry has long been plagued by high turnover rates. While some employees may leave for valid reasons, there are steps that employers can take to mitigate this issue. Offering competitive wages and fair tip-sharing practices can help keep staff motivated, while non-financial perks like family meals and discounts on food can go a long way in creating a positive work culture. Defining your establishment's values and providing ways to report complaints can also help foster a safe and supportive work environment. By implementing these strategies, managers can help retain their valuable employees and create a more stable and successful business.

Have you found that your bar or restaurant struggles with employee retention or could you use hospitality management training? Unfiltered offers cocktail consulting which can help transform your business, retain staff and serve legendary cocktails. Schedule a call today!