Restaurant Hiring & Training Strategies for Better Retention

You've poured your heart into your restaurant: from crafting your culinary creations to curating an inviting atmosphere that beckons patrons to linger. 

But there’s one ingredient that makes everything come together: your people. 

A dependable team is the heartbeat of your operation. From the back of the house to the front, it’s their consistency, energy, and care that keep service smooth and guests coming back. And yet, in an industry known for high turnover, keeping great employees can feel like trying to hold water in your hands. 

Sound familiar? 

The revolving door of staff isn’t just frustrating - it’s expensive. It drains already slim profit margins, disrupts culture, and risks turning loyal guests into one-time visitors. Each new hire comes with a hidden cost, not just in dollars, but in time, morale, and service quality.

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Each new hire comes with a hidden cost, not just in dollars, but in time, morale, and service quality. 

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Here’s the good news: restaurant retention isn’t a myth. With the right strategies in place, you can shift from reactive hiring to proactive retention - and build a team that sticks around, grows with your business, and elevates every service. 

At PNI•HCM, we’ve worked with hospitality brands for over 25 years, and we’ve seen it all. The struggle is real - but so is the opportunity. You’re not alone in facing these challenges - and you’re not stuck with them either. 

Let’s talk about how to stop the churn and start building a workplace that works as hard as you do. 

Understanding the True Cost of Restaurant Turnover

The costs of restaurant turnover add up quickly. We're talking about serious money walking out the door when employees quit, a direct hit to your restaurant's success.

The Center for Hospitality Research at Cornell University highlights that turnover costs can range from $3,500 to $5,000 per entry-level employee. 

Think about the direct expenses. Advertising for open restaurant jobs costs money. Your manager's time spent sifting through applications and interviewing isn't free, nor are background checks and any associated administrative paperwork. These recruitment costs contribute significantly to the high cost of replacing staff, an expense that chips away at profitability. 

Once you hire someone, training begins. This involves paid staff time for both the trainer and the new trainee, pulling experienced employees away from their regular duties. During this initial period, new hires are often less productive, and mistakes can lead to food waste, incorrect orders, or comped meals, further increasing operational costs and potentially affecting your supply chain efficiency due to inconsistent ordering or usage. 

The Center for Hospitality Research at Cornell University highlights that turnover costs can range from $3,500 to $5,000 per entry-level employee. And that study was conducted years ago, before minimum wages for tipped workers increased, benefit expectations expanded, and even entry-level positions became more competitive.  

But the financial hit isn't the only problem; high turnover rates also deeply affect your business in less tangible ways. High employee turnover hurts your team's morale, as constant goodbyes and training new faces can be exhausting and demoralizing for your remaining staff, especially if they're working overtime to cover open shifts. 

This can lead to burnout among your best, most loyal employees, potentially causing them to leave, too. Productivity often dips when a team is always short-staffed or constantly re-learning processes. Your guest experience can suffer dramatically, impacting customer satisfaction and the likelihood of repeat business. 

New staff might not know the menu intricacies or your service standards well. Service inconsistencies and lower service quality can frustrate regulars who expect a certain level of care from their favorite servers.  

A cohesive, experienced team delivers much better customer service, directly impacting your restaurant's reputation and crucial customer loyalty.  

Imagine a guest's favorite server is gone again; it affects their connection to your place and their desire to return, diminishing the effectiveness of any loyalty programs you might have for customers. 

Why Restaurant Retention Matters More Than You Think 

Focusing on keeping your staff isn't just about saving money on turnover costs. It's a core part of building a successful restaurant and a strong brand. Better retention brings many positive changes and contributes significantly to your restaurant's success and long-term viability. 

When experienced staff stay, your profitability can significantly improve.

They make fewer errors, work more efficiently, and are often better at upselling menu items or specials, directly boosting revenue. All these small things boost your bottom line daily, making your business more resilient. 

Consistent service and food quality are also direct benefits of a stable team.

Long-term employees understand your standards deeply. They know how to prepare dishes perfectly every time and remember regular customers' preferences, leading to a superior and personalized dining experience. 

This consistency keeps guests happy and coming back for more.  

It builds strong customer loyalty that is hard to earn otherwise, transforming casual visitors into regulars. A stable team also leads to a stronger, more positive workplace culture. 

People build genuine bonds when they work together for a while. This creates a more positive and supportive environment where employees feel they belong and are part of a team, increasing job satisfaction. This, in turn, can:  

• Reduce workplace stress. 
• Encourage staff to support each other. 
• Make shifts more enjoyable for everyone involved. 

Plus, think about the reduced training burden on your management.  

When your team is stable, managers spend less time recruiting, hiring, and training new individuals. They can focus on other important tasks, like strategic planning, marketing, menu development, or further improving the dining experience. And your senior staff can focus their training time on learning new, innovative skills that advance their careers and your business. 

Your seasoned staff can help mentor newer team members effectively, passing on valuable knowledge and best practices. This organic sharing of knowledge is invaluable for maintaining high standards.  

Improved restaurant staff retention is a win for everyone, creating a consistently motivated workforce ready to provide excellent customer service. So, how do you achieve better restaurant retention in a competitive, high-turnover industry? Let's explore why employees leave in the first place to diagnose how you can keep them. 

What Drives Employees Away? (And Keeps Them?)

Understanding why employees leave jobs is the first step to getting them to stay. The restaurant industry is known for high employee turnover – nearly 80% annually – but it doesn't have to be that way for your business.  

People leave for various reasons. With restaurant employees having so many reasons to be dissatisfied at work, it can feel like your grill just broke right before the dinner rush – hopeless. But all of these common issues with restaurant retention have solutions.  

Reasons Restaurant Employees Leave & How to Overcome Them 

Low Compensation 

Low pay is a major factor. According to a survey by 7shifts, 34.6% of restaurant employees who quit or are thinking of quitting their jobs cite wages as their deciding factor. If your wages don't offer competitive compensation, good staff will look elsewhere. Beyond bigger paychecks, restaurant employees also value benefits, like health insurance, paid time off, or even retirement benefits.  

Solutions: Offering competitive compensation and benefits can help employees feel more dedicated to your restaurant.  

• Use salary benchmarking to pay people fairly for their hard work. 
• Offer benefits that show you care about their well-being, considering options like retirement benefits and comprehensive health plans.  
• Provide rewards, incentives, and perks to supplement their pay. 

Poor Restaurant Leadership 

Wages aren't the only factor contributing to restaurant retention rates. Poor management often pushes people out. Nobody wants to work for a boss who is unfair, unsupportive, or shows a poor work ethic themselves. 

A lack of clear communication from leadership can be very frustrating for employees. Micromanagement also makes employees feel untrusted and disengaged, especially if employees work hard and don't feel recognized for their efforts. It's vital to strike a balance between thoughtful communication that keeps employees engaged and the freedom and flexibility that lets your team know you trust them. 

Solutions: Employees thrive under leaders who trust and empower them.   

• Hire and train managers who are good communicators and coaches to create a positive restaurant culture.  
• Encourage management to set clear expectations and provide constructive feedback to employees. 
• Empower leaders with the tools they need to communicate with employees, including receiving and acting upon team feedback, to show their commitment to improvement. 

Feeling Stuck 

Speaking of flexibility, feeling stuck can contribute to restaurant turnover. Inflexible schedules that don't allow for any work-life balance or the impression that employees are at a dead-end job can make them feel restless and ready to leave.  

If employees see no path for growth, they won't stick around. TalentLMS reports that 62% of restaurant employees said a lack of training would make them leave their company. People want to learn new skills and advance their careers; restaurants that don't offer these opportunities will lose ambitious staff and see an increase in the total number of employees who quit. 

If their contributions go unnoticed, they'll feel unappreciated and are more likely to leave their jobs for employers who appreciate their employees' time. 

Solutions: Employees who work hard want to be recognized for their efforts. 

• Reward hardworking, loyal employees with more flexible schedule options. 
• Offer training and development opportunities, as promoting from within is a great way to retain talent, including part-time workers who may seek full-time roles and long-term careers. 
• Provide clear compensation and promotion structures for employees. 

Restaurant Culture 

All these factors are compounded by your overall work environment, which can be a big issue in itself. Restaurant work is often stressful and physically demanding, with many employees required to work long hours. If the workplace culture is toxic or unsupportive on top of that, it's a recipe for high turnover rates and a difficult experience restaurant-wide. 

Solutions: Simple gestures can go a long way in making staff feel valued, building loyalty, and strengthening their commitment to your restaurant. 

• Create a safe, supportive workplace free from harassment.  
• Encourage employees to mentor and help each other through tough situations, like dealing with difficult customers or high-pressure scenarios. 
• Respect employees' time off by ensuring proper staffing and allowing breaks. 
• Regularly acknowledge good work and thank your employees for their efforts, both privately and publicly, when appropriate. 

Actionable Strategies for Better Restaurant Retention 

Okay, so you understand why people leave and why they stay. Now, let's take a strategic approach to improving your restaurant retention.  

Improving your employee retention in the restaurant industry requires a proactive approach. It's about creating a place where people genuinely want to work. 

Hire Right from the Start 

Efforts to reduce restaurant employee turnover begin before an employee even walks in for their first shift. Getting your hiring process right is critical. You want to find people who are not just skilled, but also a good fit for your team and your restaurant culture. 

Start by clearly defining your job roles.  

• What exactly does this position entail?  
• What skills, experience, and personality traits are truly necessary? 
• What is the career progression for people in this role? 

Write job descriptions that accurately reflect the job, the compensation, and your restaurant's culture. Being upfront about expectations helps attract suitable candidates for your restaurant jobs – and improves the longevity of your new hires. 

Effectory found that employees who experience role clarity are 53% more efficient and 27% more effective at work than employees who have role ambiguity, leading to an overall 25% increase in work performance. 

Use behavioral interviewing techniques.  

Instead of just asking what candidates would do, ask what they did. "Tell me about a time you handled a difficult customer," or "Describe a situation where you had to adapt to a sudden change during a busy shift," gives you more insight than hypothetical questions. This helps you understand their past behavior, a good predictor of future performance. 

Consider what candidates can add to your restaurant culture. 

Skills can be taught, but attitude and personality are harder to change.  

• Does the candidate share your restaurant's core values?  
• Will they get along with the existing team and contribute positively to the workplace culture?  

Look for candidates who align with your current team but also bring something to the table, like leadership, social, or conflict-resolution skills that improve your restaurant culture. Diverse perspectives and different-but-complementary approaches will produce a well-rounded company culture.

A strong culture fit can significantly improve long-term employee satisfaction and your overall restaurant retention success, helping to reduce restaurant employee departures. 

Onboarding That Actually Works 

The first few weeks are crucial for a new employee. 30% of restaurant workers leave their job within the first 90 days. A good onboarding experience can make a huge difference in their employee engagement and long-term commitment. It sets the tone for their entire employment journey with your restaurant. 

Don’t just throw them into the fire on day one. 

Instead, build a solid training program that actually sets them up for success. Go beyond the basics and make sure it includes things like: 

• The nuances of your specific service style. 
• Any upselling techniques you encourage. 
• Health and safety protocols.  
• Detailed menu knowledge (ingredients, allergens, and pairings).  
• Precise service standards for every step of the guest interaction. 
• Proficient point-of-sale (POS) system operation to avoid errors during busy periods. 
• Necessary local, state, and federal compliance requirements. 

Well-trained employees are more confident and effective from the start. 

Consider implementing a mentorship or buddy system.  

Teaming new hires with a seasoned, upbeat team member gives them someone to lean on, ask questions, and learn the ropes during those crucial first weeks. 

The buddy can:  

• Answer questions 
• Offer tips 
• Help the new person find their way in the workplace, both socially and operationally.  
• Demonstrate their leadership skills on the path to management or shift leadership. 

This helps them feel welcome, supported, and integrated more quickly into the team.  

Make new hires feel truly welcome from day one. 

69% of employees are more likely to stay with a company for three years if they experienced great onboarding, according to SHRM. A positive first impression can set them up for long-term success with you and help with your restaurant retention. 

There are a few ways you can add personal touches to your onboarding.  

• Introduce them to the entire team and show them around all areas of the restaurant.  
• Host a team lunch during their orientation to get them acquainted with the menu. 
• Send a welcome note, including why you're excited for them to join the team.  
• Ask them for their feedback on the onboarding process to show that you value their input. 

Small gestures can make a big impact in those critical few weeks where you and your new hire are judging if they fit your restaurant culture.