How to deal with the labour shortage in the restaurant industry in 2020-2021

by | Sep 3, 2020 | Labor Shortage

The restaurant industry is in an unprecedented state of transformation. Labor shortages and new regulations are pushing restaurants to make drastic changes in the way they work and manage their staff. 

The rising cost of living combined with the low wages offered by entry level service industry positions has applicants less interested than ever before in hospitality jobs.

Labor has become a major portion of restaurants operating costs due to many factors including the recent labor shortage in the industry.

This shortage and the after effects of the global pandemic has caused many restaurants to shut down or reduce their staff.

This effect is seen particularly in markets like North America and Europe where the price of labor is higher than average. 

How to survive the labor shortage in the restaurant industry ?

Get Creative with Recruitment

Employee recruitment and retention are two of the restaurant industry’s biggest challenges, and has been for many years.

In today’s state, being able to find and keep employees has become even more critical.

The days of people rushing to your office to bring resumes and ask for jobs are gone. Nowadays many job markets are saturated, and people apply online mostly. To find good candidates these days, you must promote job ads online on sites like Facebook, Indeed etc. Hiring a staffing agency can also be of great help to help you attract the right people.

Job descriptions tend to be really basic and not so attractive. Take time to make yours stand out, and position your business properly on online job boards.

Automating repetitive administration tasks

Restaurant staff are known to work longer hours than average, all while getting lower pay than average.

Better working conditions are known to make staff happier, and therefre more productive. Investing in tech solutions that can automate some of the more time-consuming administrative tasks your staff are currently responsible for is a great way to save time and money on the long run.

Everyday tasks like keeping track of the inventory, billing clients and setting up reservations can be automated without a huge investment, but will help your skilled staff save much time.

Technology as a solution to reduce the need for labor

Many restaurants across Europe and North America are struggling to keep their doors open. On the other hand, many restaurants found ways to increase the efficiency of their limited staff under these new restrictions and limitations.

New management techniques, enhanced by new technology are helping businesses stay afloat with less employees than usual.

As the general cost of labor goes up, the cost of technology relative to the cost of labor goes down. In today’s marketplace, it, makes more and more sense to invest in digital solutions rather than hire more employees. Restaurant Technology like BillMaster is especially appealing to restaurants who want to expand their stores, but are struggling to find enough staff for their existing locations. 

BillMaster can make make your restaurant run smoother, with less employees: By automating the billing process, it reduces the number of waitresses needed per section and significantly reduces the amount of time wasted preparing and paying bills for both your workers and your clients.

The future of the restaurant industry

Most restaurants rely on healthy consumer spending to grow and stay afloat.

Technological solutions that enhances marketing and overall client experience are key to competing in the actual state of the industry. 

Loyalty systems like BillMaster’s or any digital solution that increases user engagement are of great value to restaurant owners since they give a good reason for customers to come back in a hyper competitive and ever changing market like today’s.

Digital marketing, and placing your business on third party apps like Uber Eats or DoorDash are essential to being seen by potential customers these days.

To Conclude

Labor shortages and COVID-19 related regulations are a big challenge for restaurant owners these days. Especially for those who are new to the business.

Our word of advice is to trust in your brand/concept, focus on digital marketing solutions and technological advancements. To thrive nowadays, restaurants have to stay creative and keep exploring ways to adapt to the ever changing labor and business landscape. 

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