The restaurant industry experiences some of the highest rates of employee turnover across industries. According to the National Restaurant Association, 77% of restaurant businesses still find hiring and retaining staff to be one of their biggest challenges.
Not only does a high rate of staff turnover lower the average level of service in the restaurant, but it also brings along tremendous costs linked to the whole process of training new employees. Although the reasons behind this problem are many and varied (from the large ratio of students working in the industry to high levels of seasonality), it is also true that many operators in the industry could do more to retain talent.
Here are five ideas to help you keep your staff happy to work in your restaurant.
1. Build a positive environment
In a restaurant, teamwork is vital to keep service running smoothly. When the team is disconnected, mistakes, bottlenecks, and finger-pointing can quickly arise. As a result. service suffers, customers get irritated, and staff members leave for places with a more relaxed atmosphere. To prevent this very common chain of events, focus on fostering team spirit in your company.
What you can do
- Address the work-life balance. Long, irregular hours are a major reason restaurant staff burn out. Make schedules predictable when possible, avoid last-minute changes, and respect time off. Even small adjustments like rotating weekends off or limiting double shifts can go a long way in helping staff feel more in control of their time and less overwhelmed.
- Show that in your restaurant all employees work hard by having managers routinely perform different jobs, from clearing the tables to preparing drinks. Fair division of tasks improves relationships in the workplace; plus, a manager who has direct experience of what each task requires will gain more trust from their employees.
- Celebrate milestones. When one of your employees has a birthday, graduates, or gets a promotion; when an employee has a work anniversary: organize an outing for the whole team, or at least bring in a cake and some drinks, and take an hour aside to get together to unwind. Create traditions that make your employees feel rewarded for their work, and the workplace more personal.
2. Equip employees with the right tools
If you think you are saving money by not replacing outdated equipment, you are sorely mistaken. There’s nothing more frustrating than trying to perform a great job – as quickly as possible! - while having to work with non-functional tools. An old fryer that the kitchen staff can’t rely on may ruin the lunch rush; an old Point of Sale system that gets stuck, or is slow to create tickets, will decrease table turns, while at the same time upsetting customers who are in a rush.
What you can do
- Check with your team regularly to see if any of the tools they are using are inadequate or obsolete, both in the back, and in the front of house, and make an investment in the latest technology. Just remember: what you spend on technology to support your staff, such as self-service kiosks, tableside tablets, or Kitchen Display Systems, should be seen as an investment in improving customer service.
- Involve staff in the selection process. When evaluating new tools — whether it’s kitchen equipment, scheduling software, or POS systems — get input from the people who use them daily. Their feedback will help you choose tools that actually solve problems and boost efficiency. Provide proper training for new tools. A modern system is only helpful if your team knows how to use it confidently.
- Offer hands-on training when new technology is introduced and make it easy for staff to ask questions or revisit training when needed.
3. Show appreciation for a job well done
Employees want to feel seen and appreciated by their employers, and to have their work recognized when the situation presents itself. A study from the American Psychological Association even found that workers who receive consistent feedback and recognition often experience higher levels of psychological well-being and productivity.
What you can do
- Make it a habit to compliment your staff for their good work, for example when a busy shift has gone particularly well, when sales goals have been reached, or when an employee has handled a difficult situation in a professional manner.
- “Thank-yous” matter. Has a server agreed to a last-minute change of shift to accommodate your business’s needs? Did someone skip a break to help during the rush? Make sure to acknowledge their effort and thank them for going above and beyond.
- Give your employees time and space to relax. Create a break room with a coffee machine, where they can access a free lunch or snacks, and a water dispenser: having the flexibility to decompress and get their energy back will help your staff maintain motivation once they return to work.
4. Offer ongoing training
Thorough training can provide your restaurant staff with a sense of purpose and give them a clear idea of what is expected of them. Make sure to teach new team members about your values, rules, and policies alongside all they need to know to properly serve your customers.
What you can do
- Provide your staff with access to professional courses. Although the onboarding stage is of great importance, don’t let your employees’ learning stop after that. Training should be a continuous practice, helping your employees feel like a valued member of the team. This shows them you care about their growth and, as a bonus, will bring extra competencies back into your business.
- Make clear career pathways within your restaurant so staff can see how they can grow and take on new roles over time. According to data from the National Restaurant Association, 9 out of 10 restaurant managers and 8 out of 10 restaurant owners started at entry-level positions. When you invest in your employees’ professional future, you are also investing in your business’s future success.
- Encourage peer-to-peer learning. Create opportunities for experienced staff to mentor newer employees. This not only builds team cohesion but also empowers your most skilled workers by recognizing their expertise and leadership potential.
5. Give staff a channel for official communication
Unclear communication and misunderstandings can quickly ruin work relationships and sour the atmosphere in the workplace. “Why does he always get all the overtime?” “Wait – I asked for my holiday with two weeks’ advance, and it got rejected, why did she get time off when she just asked yesterday?” Limit the risk of grudges and complaints of preferential treatment by implementing tools that enable clear, straightforward communication between employees and management.
What you can do
- Use workforce management tools that cut the confusion out of scheduling and planning. The staff management add-on in LS Central, our unified platform for restaurant businesses, can give you a complete overview of your employees’ schedules from one central place. You can directly communicate with staff members through the Employee Portal, where they can see upcoming shifts, comment on their hours, request to work certain days, ask for shift changes or time off, receive messages, accept or decline work requests, and see their manager’s responses.
- Hold regular check-ins or team huddles. A brief weekly or bi-weekly meeting gives staff a predictable opportunity to raise concerns, ask questions, or clarify expectations. Document takeaways so nothing gets lost or forgotten and follow up individually if certain issues need deeper attention.
- Establish a clear grievance process. Whether staff feel overlooked, unfairly treated, or want to discuss a shift assignment, there should be a transparent, confidential way to do so. A formal policy, whether posted in staff areas or the employee portal, can help ensure issues are addressed fairly and consistently.
There’s no one-size-fits-all solution for employee retention, only smarter steps forward
When your employees feel valued, they show up with energy, stay committed, and create the kind of service experience that keeps guests coming back. You’ll save on recruitment and training, reduce turnover headaches, and build a workplace culture people want to be part of.
Ready to make life better for your staff and smoother for your managers? Get in touch with us, we’ll help you find the right technology to support your team and strengthen your operations across every location.
