Operations | By Mashaun D. Simon
As government leaders work to crunch interest rates and stimulate the economy, quick-service industry experts have come up with their own solutions to surviving the tough times, and it starts from within.
Despite the economy, 50 percent of all meals are still prepared outside the home, according to Zagat’s 2009 America’s Top Restaurants report, released in October 2008.
And while they are eating out more, consumers are also making smarter choices, says T.J. Schier, director of operations for the 13-state sandwich concept Which Wich. In other words, they are trading down, which is why Schier believes a quick-serve overhaul is necessary. According to him, operators must begin focusing on a return to the basics like suggested selling and faster, more accurate service—both of which start with employees.
Now is the perfect time for the industry to do a complete overhaul, says Schier. A veteran of the industry for more than 20 years, Schier says today’s revamp should most importantly include an upgrade in staff.
“The time is ideal,” he says. “Unemployment is up, which means access to a different kind of employee. Now, people who would not normally be looking at our jobs during a booming economic time are available.”
By removing the people “on the bottom rung of the employee ladder,” and allowing them to go someplace else, Schier says companies can bring in higher caliber employees.
Nathan Gilder, director of Restaurant Revolution, a Web site and blog focused on the restaurant industry and successful business strategies, agrees.
As long as there is more business, there will be more hiring opportunities, Gilder says. He believes the best way to attract better employees is through testimonials.
“It is something you do not see frequently,” he says, “And companies would benefit greatly from them.”
Having employees give specifics on why they think it is a great place to work and presenting an emphasis on job stability are crucial.
Once top-notch employees are recruited, however, the trick is keeping them. One way is to challenge them by encouraging them to go out and bring in more sales. “This way there is a benefit for everyone,” Gilder says. Employees can be challenged to find community events to cater or neighborhood groups to host at the store.
It is important to also focus on properly training crew members once they are hired. Experts agree that during the down economy, customers will be looking for increased value during their quick-service visits. According to Senior Vice President of Research for the National Restaurant Association (NRA), Hudson Riehle, effective staff training could result in boosted sales.
Which Wich’s Schier says operators overlooked training issues recently since the economy and quick-serve business were good. “Because dealing with these issues is not sexy stuff, they are often ignored or put off,” he says. “Now is the time to deal with those issues.”
Savvy operators should take advantage of the tough economic times by recruiting high-quality crew members and instilling regular incentive programs within their stores to keep employees engaged in the brand.
But the challenge of hiring and keeping good employees is not likely to end once the economy recovers. Looking ahead, the NRA reports restaurant industry job growth will not only outpace that of other industries, but its workforce will actually grow faster than the U.S. population, particularly in the key demographics of teens and young adults.
running contrary to trends.”
While employment opportunities within the industry are set to grow, Gilder suggests focusing on current employees during the recession. “Restaurants need to focus on the employees they have, through recognition, reward, and support,” Gilder says. “It is financially intelligent for employers so that their current employees are not looking for something better.”
Schier agrees that maintaining a consistent, reliable staff saves turnover dollars and is worth the investment.
“Any incentive, like giving the bonuses from the sales growth to employees, can do,” he says. “At this point, whether a good or bad economy, more can be done to reward employees.”
One company following that advice closely is McDonald’s (NYSE:MCD), which in October 2008, saw U.S. sales increase by 5.3 percent. Danya Proud, spokeswoman for the company, credits the brand’s commitment to its employees, not its infamous dollar menu.
“Our employees are our biggest brand,” she says. “Therefore we work to make sure they know that we value them, every time we get the chance. We have significant focus on training and are certainly focused on keeping them happy.”



