When you are in the restaurant business, you are in the people business, with both customers and employees. The actions of your restaurant staff can make or break a meal for customers, and in the Internet age, every meal counts. While you cannot control how reasonable some customers are, you can fill your restaurant with talented, professional staff members that will distinguish your restaurant from your competition.
Your staff represents you in front of customers. They are a key bridge to building good customer relationships and running your business at a profit. But finding high quality staff is far from easy.
The people you choose to work in your restaurant determine a large chunk of your restaurant’s fate. Good hiring practices in the restaurant business help to establish positive reputations, build customer loyalty, save money and create more pleasant working environments. Owners need to pay equal attention to the different skill sets of both front- and back-of-the-house staff when hiring. While technical mastery may be best for kitchen staff, pleasant servers help to attract and retain customers. Even simple hiring procedures require a minimum of two interviews, and managers should check references and former employers by phone and run background checks.
Remember the hiring process drains important resources, so you want to get it done right the first time. The National Restaurant Association reports that training a new employee costs an average of $5,125, and training managers runs an average of $35,964. More than 80 percent of restaurant turnover happens because of careless hiring decisions, according to the Harvard Business Review.
Your staffing needs could include different skill levels, depending on the type of restaurant. For example, fine dining operations need experienced chefs with strong experience, and head chefs often like to help choose their kitchen teams. However, you might need some cheerful and reliable kitchen helpers, dishwashers and other laborers to handle manual work where high levels of skill aren’t needed. Skilled staff rarely want to handle menial jobs, of course, but sometimes such work is necessary, so try to avoid hiring prima donnas. You should also try to use skilled workers at their pay grade as much as possible to prevent spending too much on payroll for simple, manual tasks.
Many restaurant owners fail to check former employers because personality conflicts often influence references at small, independent restaurants, and some owners give bad reviews because they are unhappy that valued employees seek work elsewhere. Busy chefs and restaurant managers often resent the time demands of giving references and answering detailed questionnaires. However, you could be liable for injuries or damages if you fail to exercise due diligence and check references. Employment practices have changed in the last few decades. Checking references is so easy that employers are now held to higher standards.
Restaurants that hire servers can pay less than minimum wage, and these companies must report tip income as part of an employee’s compensation. Be sure to study the applicable regulations, and report tip income accurately so that the right withholding figures get deducted from pay. The IRS has cracked down on under-reporting. The IRS can use comparisons between credit card tips and overall sales to spot inconsistent and fraudulent tip reporting. As an employer, your restaurant could be liable for back taxes if tipped employees are audited.
Personal rapport and compatibility play an important role in work harmony. Even the most qualified candidates could display arrogant habits that make working with them unpleasant. The problem is that owners often choose people they like without giving equal weight to background information. Consider the following information along with personal rapport:
Organized hiring strategies increase the chances of making good hires, so take the time to orchestrate hiring efforts, and consider using third-party employment services and vendors that run background checks.
Good outcomes in hiring staff depend on the level of investment you put into the process. It is always better to be ready for anything with staffing. New restaurant owners might want to hire a few more employees than they need because staffing new restaurants usually results in some compatibility and performance issues. Some employees take longer to learn, so consider whether additional training or termination works best under the circumstances, keeping in mind how expensive it is to hire new help. But go about the process methodically, because a restaurant is only as good as the people who work there.