The Restaurant Sector in Crisis

October 04, 2021|By Ryan Ashton
The Restaurant Sector in Crisis

Within the hospitality industry, recruitment and retention have always been significant pain points, due to the typical cyclical and transient nature of the workforce. More recently, however, hiring and keeping talent have become particularly challenging, as businesses started reopening and restaffing after the slowdown incurred by the dreaded ‘p-word’. In fact, this year, restaurant employment is down 12% from pre-pandemic levels.

Why is this an issue? Such a labor shortage greatly affects the restaurants’ ability to operate at full capacity and provide best customer service – the absence of these can be devastating to business success and profitability.

And now what we’re seeing is that due to worker deficit, many restaurant owners are being forced to stay closed or work at reduced capacity during the hours when they used to operate. The staff that they have managed to retain often feel overwhelmed with excessive workload and stressed out as there is no flexibility in their schedules. This, of course, has a trickledown effect on the quality of customer service and overall experience, which can be damaging to business reputation in the community and affect customer loyalty.

In today’s environment, restaurant operators must work harder than ever to set themselves apart from the competition. They need to clearly define and communicate to the workforce why their business is a great place to work and why it is better than the neighboring restaurants and even businesses in other industries, such as retail and delivery.

To help restaurants in their hiring and retention efforts, we developed this 3-page ebook that talks about earned wage access as a solution that has already helped thousands of businesses improve recruitment and retention, decrease absenteeism, and increase employee loyalty and engagement. All of which are critically important considering the environment described above.

Download the ebook here or get in touch with a member of our team to talk about how Instant’s no-cost earned wage access solutions can help your business.