Article
The Revolving Door - Managing Employee Turnover
Jason Smith, executive chef and owner of 18 Restaurant Group in Raleigh, North Carolina, has been a part of the restaurant industry since he graduated high school, falling in love with cooking while working at Raleigh's popular 42nd Street Oyster Bar and training under two James Beard Award-winning chefs at Durham's former Magnolia Grill.
Smith says he soaked up everything he could while working with Danny Meyer at New York's Union Square Café and Gramercy Tavern before taking a year-long gig in Antarctica, where he cooked for 650 to 1,300 people per day at a research station at the National Science Foundation.
Cooking finally lead him back to his hometown of Raleigh, where he found an investor and opened his contemporary American grill, 18 Seaboard, in 2006. His business grew from there, and Smith went on to open Cantina 18 in 2010, Durham's Harvest 18 in 2014 and a second Cantina 18, in Morrisville in 2017. Earlier this year, Smith sold the lease to his first restaurant, 18 Seaboard, with plans to focus efforts on his remaining three.
If keeping one store staffed is keeping you up at night, imagine three stores. These insights from a seasoned restaurateur will shed some light on single and multiunit staffing. Chef and owner Jason Smith shares how he manages turnover inside three restaurants.
The turnover rate of the hospitality sector in 2018 ranked above 70 percent for the fourth consecutive year, according to the Bureau of Labor Statistics' Job Openings and Labor Turnover (JOLTS) program. As employee turnover continues to be an issue, operators like Smith, who own multiple units, are working diligently to keep positions filled. Here, Smith shares how he's handling common staffing issues.
RS&G: Have you seen the turnover rate growing in recent years?
JS: I think that the turnover rate is growing, especially if you open a new location. That's always been the trickiest time because you don't have a core crew, you don't know who you're hiring, you're scrambling to finish the restaurant and open and train at the same time.
I think that in Raleigh, and most cities right now, every restaurant is so understaffed that the staff knows that they can move and get another job within an hour. When you haven't had a chance to build up a camaraderie and a culture and a sense of ownership, then the turnover rate is much higher.
RS&G: Do you find that having multiple units make staffing easier or harder?
JS: I think it's easier in some ways, because you're providing an environment that has opportunity for growth. The staff can see that there's an opportunity to move up in the ranks.
If it's a no call, no show, and you can't provide a note and something catastrophic didn't happen, you're gone. It sets a standard; you can't just come and go as you please.
Having a company that's growing also attracts more people who treat hospitality as a career, which is great for the culture.We promote from within 90 percent of the time.
RS&G: What has helped you the most with managing multiple schedules over multiple locations?
JS: About 10 years ago, we tried some new scheduling that really helped. All of our salaried managers--kitchen and front of the house--take one day shift. So, they have two long days that are doubles from 10 to 10, and then one day that's like 10 to 3, so they're only working four nights per week. I think that's helped with retention and with maintaining a quality of life. Otherwise, it's really hard to work ?ve nights a week, especially if you're a parent.
RS&G: What is the "magic sauce" that keeps staff members from leaving a restaurant?
JS: You can keep more staff by communicating expectation levels; reporting results; setting goals; creating a sense of camaraderie; creating an environment with teamwork; keeping the restaurant running with the proper equipment; and giving them the proper tools to do their job.
I think that the turnover rate is growing, especially if you open a new location. That's always been the trickiest time, because you don't have a core crew, you don't know who you're hiring, you're scrambling to finish the restaurant and open and train at the same time.
I think the retention of hourly employees really comes down to having the right managers who are making their job easier and helping them succeed.
Those types of managers always have the longest retention rates. It's hard, but you have to hold everybody to a certain standard and push them to do a better job.
Our managers get their hands dirty. I know that at some restaurants it doesn't work to see a chef bussing tables, but at Cantina 18, I'll get out there and bus tables with the staff when we get busy.
I think that retention and continuity is key. I don't create competition among each other, because I want them all working together. I create competitions such as whoever sells five specials gets one for lunch. I want to be a part of something, and I think the staff wants to be a part of something.
RS&G: Regardless of turnover, is there any scheduling behavior that you won't tolerate?
JS: If it's a no call, no show, and you can't provide a note and something catastrophic didn't happen, you're gone. It sets a standard; you can't just come and go as you please. I'm not going to say there's never been a time that we kept someone who was really good after they didn't show up, but that guy usually ended up burning me again, and it's not worth it.
Most managers would rather put on an apron or bus tables than have someone treating us that way. As for a person who calls in late three times a week, we'll say, hey, everyone else is here setting up, you've got to be here setting up. It costs about $1,000 to hire a new person, so you have to decide if it's worth your time to retrain the person you have or find someone new.
