Employees | KRG Hospitality

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October 11, 2021by David Klemt David Klemt No Comments

What’s a Marketing Fund?

What’s a Marketing Fund?

by David Klemt

Do you know what a “marketing fund” is?

Moreover, if you know what I’m talking about, do your managers and staff have access to it?

A marketing fund—not your marketing budget—is a useful tool that can solve guest experience issues quickly.

What it Is

Both Doug Radkey and I mentioned marketing funds last week.

First, I brought it up in my article about communication and staff empowerment. Next, Doug included the marketing fund on last week’s Bar Hacks bonus episode, titled “Empowerment.” There, he shared the story that inspired my article.

Simply put, a marketing fund is a bit of cash kept on hand for use in a variety of situations.

Some people call it petty cash. Others refer to it as an “emergency” fund. We call it a marketing fund.

Whatever you choose to call it, it’s a small amount of cash most accessible by a manager or, often times, a bartender.

How to Use It

Operators will have to decide on the amount set aside; how often to replenish it; and who has access to the marketing fund.

For some, $40 may be feasible. Others may find that setting aside $200 for the week may work best.

In most cases, a register behind the bar serves as the marketing fund’s home. A manager or bartender knows where it is and can find it quickly.

Now, you’re likely noticing the word “quickly” is coming up a lot in reference to the marketing fund. That’s the point—quick, smooth problem solving.

So, come up with your rules and expectations regarding the marketing fund. Communicate those expectations. Then empower specific team members each shift to access it.

Of course, this requires trust in the team, their integrity, and their sense of what is and isn’t reasonable.

When to Use It

Again, this is about what’s reasonable and acceptable to an individual operation.

Will buying a round ease tensions and put a guest’s experience back on a positive track? Use the marketing fund.

Is there a promo that’s going wrong for a guest that a manager can solve with cash (a gift card problem, for example)? Access the marketing fund.

Will running across the street to grab an item solve a guest problem? The marketing fund can help.

This works for several reasons:

Staff can solve a guest’s issue quickly. This eases tensions and improves the guest experience.
Guest-facing or other issues can be solved smoothly. In some instances, the guest won’t even catch on that there’s really a problem.
Marketing fund transactions are traceable.
The marketing fund holds the operator and staff accountable. Are issues consistently arising during certain shifts or with specific team members? Something needs addressing.

The marketing fund is a practical, useful tool. Its use is trackable and ensures accountability. Consider implementing this fund today.

Image: Evergreens and Dandelions on Unsplash

October 6, 2021by David Klemt David Klemt No Comments

10 Words that Exemplify Leadership

10 Words that Exemplify Leadership

by David Klemt

During episode 50 of the Bar Hacks podcast, Travis Tober sums up restaurant and bar leadership in just ten words.

In fact, this seemingly “small” sentence explains leadership and buy-in for essentially every type of business.

Let’s take a look at what Tober, co-owner of Nickel City and owner Old Pal, says that resonates with me.

10 Important Words

So, what does Tober say during his first appearance on Bar Hacks that embodies leadership?

The following, about his general manager:

“He knows the brand just as good as I do.”

How do those words exemplify leadership and buy-in? For several reasons:

They illustrate transparency from the owners.
Those words show trust.
The ten words put buy-in and mentorship on display.
They show that the GM possesses a sense of ownership of the brand.
The brand is obviously defined clearly.

Buy-in is Crucial

As an entrepreneur, consider what you’re asking of the people who work for you. You’re expecting others to help you achieve your dream.

So, why would they take their role in your business seriously rather than only seeing it as a paycheck? The answer is simple: buy-in.

Staff want to feel as though they’re a part of something—they don’t want to work just to pay bills.

As difficult as it may be, an operator needs to trust the people they hire.

Why would you want them on your team—and you need to build a team, not just have employees—if you don’t trust them? Filling roles just to have bodies in the building is a losing strategy, labor shortage or not.

In addition to trust, there needs to be brand indoctrination. Every employee should be a brand evangelist for you and your business.

One of the most powerful recruiting and marketing resources at your disposal is your team. People they encounter should want to spend time and money at your business because of your team. They should want to work for you after observing your team at work and out and about.

If that’s not happening, something is wrong. Your team doesn’t trust you; doesn’t feel as though you trust them; doesn’t feel empowered; or doesn’t believe they’re really a part of your brand and business.

So, ask yourself a simple question: Can my GM, management team, and staff say they know my brand as well as I do?

Listen to episode 50 of Bar Hacks with Travis Tober on Spotify, Apple Podcasts, or wherever you listen to podcasts.

Image: Damir Kopezhanov on Unsplash

October 5, 2021by David Klemt David Klemt No Comments

Why Communication and Empowerment Matter

Why Communication and Empowerment Matter

by David Klemt

To truly embody the spirit of hospitality, internal communication and empowering staff must be part of your operation’s culture.

A situation KRG Hospitality president Doug Radkey found himself in recently could have been resolved quickly and smoothly.

However, it’s clear the staff lacked communication from the top. Nor did they have the ability to solve problems as they arose.

Let’s dive in.

Guest Experience

First, I’m not going to reveal where this incident took place. In fact, I’m not even going to provide the location.

Second, the problem arose at the front desk of a hotel. A well-staffed front desk—there were four team members working.

The issue was fairly minor but impacted the guest experience.

So, Doug and Jennifer Radkey booked a hotel over the weekend. They made their decision in part because of an available package. Among the perks of the package was a $50 gift card for a nearby restaurant.

Stopping by the desk on the way up to their room, Doug asked for the gift card. The desk clerk he asked had no idea what he was talking about.

In fact, none of the four front desk clerks knew about the promotion. Doug pulled up the hotel’s website and promotion on his phone, and showed the clerks.

Doing so jogged one clerk’s memory. However, details were still mostly unknown. There was no manager on duty and the staff searched through drawers looking for the restaurant gift cards.

After about ten minutes of searching, Doug said he and Jennifer were headed up to their room to get ready for dinner. They’d be down in an hour for the card (hopefully).

A Resolution, Kind Of

True to their word, Doug and Jennifer returned to the front desk for the gift card.

Miraculously, the front desk clerks had found one. (However, Doug thinks one of the team members ran over to the restaurant, bought a card, and brought it back to the hotel.)

One more note: A housekeeping team member had overheard the incident at the front desk as it was unraveling. She chimed in to suggest the front desk just knock $50 off the hotel stay or give Doug and Jennifer $50 cash to take to dinner.

Instead, as I just explained, the front desk clerks got their hands on a gift card.

But let’s look at what wrong here:

The guest encountered a service issue and waited more than ten minutes for any sort of resolution.
That resolution didn’t come for more than an hour.
It’s clear the staff received insufficient notice and details about the promotion.
The staff was also most likely not empowered to provide quick resolutions to guest problems.

Doug’s incident could have been resolved quickly and smoothly through communication and staff empowerment.

Communication

Clearly, communication is key for any business to operate smoothly. That’s not limited in any way to hotels or hospitality—all businesses in all industries need to value communication.

In fact, clear communication is a foundational value. Communicating clearly needs to be part of every operator’s core values and ingrained in their brand’s culture.

If there’s a promotion, if there’s a special, if there’s anything “unique” happening at a hotel, restaurant, bar, entertainment venue, etc., the staff needs to know.

Operators should email the details to staff members. Managers should share the details of a promotion or special during shift meetings. Staff should know how to enter promotions into the POS.

It’s doubtful that Doug would’ve encountered this gift card issue if clear communication was an important element of the hotel’s culture.

The front desk clerks would’ve known about it, and likely would’ve handed over the gift card upon check-in. Barring that, they would’ve known where to find the cards quickly and easily so they could’ve handed one out upon request for those guests who booked a room via the promotion.

Empowerment

There’s a second element of this particular guest experience equation: empowerment.

Had the front desk staff been empowered to correct mistakes as quickly as they may arise, it’s possible Doug would never have noticed there was an issue.

As difficult as it may be, operators and managers need to trust their staff. If that’s not happening, there are deeper issues at play that must be addressed and corrected.

If this hotel staff—remember, four clerks deep—were accustomed to adapting and resolving problems on the fly, that would’ve been evident.

This article wouldn’t exist because Doug wouldn’t have had a memorable negative guest experience to share with me.

Up to a reasonable point, guest-facing staff need to be empowered to solve problems quickly. It’s up to individual operators to decide what’s reasonable.

Upset guests don’t like encountering issues, obviously. Do you know what they really don’t like? Having to repeat themselves or watch staff flounder to reach a satisfactory resolution.

An empowered staff can assess a situation, target the problem, and resolve it without involving anyone else. And they can do so quickly and smoothly.

A Better Resolution

How could this issue have been resolved faster, accounting for the poor communication regarding the promotion? A daily or weekly “marketing fund.”

Some operators set aside an amount of cash for bartenders or other front-of-house staff to use at their discretion to solve problems. When that marketing fund is accessed, it’s reported and management can review the who, how much, and why at the end of the night.

In this case, $50 could have been handed over and accounted for with a, “I’m so sorry, we seem to be out of gift cards at the moment, this offer has been so popular,” and Doug would’ve only had a slight inkling of an issue.

Again, there were four front desk clerks present when this happened. Three didn’t know about the promotion. One clerk had a foggy idea about the promotion.

This wasn’t a staffing issue, nor was it a pandemic issue. And 19 months in, as harsh as this may seem, the pandemic can’t be the fallback excuse for every issue that comes up.

The following day, a manager learned of the incident upon Doug and Jennifer checking out the next day. He apologized and knocked $50 off their stay.

That wouldn’t have been necessary had leadership communicated about the promotion clearly. It certainly wouldn’t have been a painful incident had the staff felt empowered to make impactful guest experience decisions.

Today, commit to reviewing your operation’s communication. In all honesty, is it clear? Can it be improved? Have there been issues lately that could’ve been avoided if clear communication was part of your brand’s culture?

Once you’ve reviewed communication, as yourself if your staff feels empowered to solve guest issues quickly and reasonably. If not, that must change as soon as possible.

Image: Rodrigo Salomón Cañas from Pixabay

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September 27, 2021by krghospitality krghospitality No Comments

Why You Should Hire for Grit

Why You Should Hire for Grit

by Jennifer Radkey

It’s no secret that the hospitality industry is currently struggling to fill empty positions.

In an industry that suffered immensely throughout the pandemic with closures and restrictions, the desire for workers to return is low. Add in underlying issues such as low wages, unappealing hours, and sometimes undesirable work culture, and it makes the hunt for great employees seem even more daunting.

But what do you do when the resumes do come in? How do you select team members who will make your business stronger and help you strive towards success?

I’m going to suggest that you start by looking for one key characteristic: Grit.

What is Grit?

Psychologist and grit specialist Angela Duckworth states that, “Grit is sustained passion and perseverance for long term goals.” Grit is showing stamina in order to achieve success. It is often a better predictor of success than talent or skill alone.

If you want to do a deep dive into the benefits of grit to learn how and why grit is a better predictor of success than talent or intelligence, I highly suggest reading Duckworth’s book Grit: The Power of Passion and Perseverance. You can also check out her Ted Talks.

Why Grit?

Gritty individuals are more likely to deal with adversity better. These are the people you want on your team, especially in leadership roles. They are individuals who see success as a marathon and do not quit.

In an industry known for high turnover, the number one quality you should be scouting for is perseverance. Who is going to stick with you when times are stressful? Who is going to push for personal and professional growth? These are the individuals you need to look for.

Hiring for Skill

Many restaurant and bar owners will look at skill first when hiring new staff. I get it. If someone has previous experience and has demonstrated job specific skills, then it means less training on your part. If they “know what they’re doing,” that individual should be a good hire, right?

While finding someone with skill may prove that they can do the day-to-day tasks, it says nothing about how dedicated they will be to your business, what their growth potential is, or what their values may be. Skill can be easily taught; values, grit, and a growth mindset, however, can not.

Hiring for Grit

It starts with your job ad. An individual with grit is on the search for growth opportunities and for challenges.

What are you offering your team members? Are you offering learning opportunities, tuition assistance, training experiences? Are you making this clear from the very start that these opportunities are available?

If you want dedicated employees who are of a growth mindset you need to attract them to you with what they are searching for.

The Resume

Resumes may not be plentiful, and you may need to fill a position ASAP, but you still need to take the time to carefully analyze a resume if you want to hire for long-term success.

When reading a resume there are clues to indicate if the candidate has grit. Firstly, check to see how long they have stuck with previous jobs, teams, hobbies, volunteer positions, etc. Do they have a lot of experience but have switched jobs every one to two years? Have they done a lot of volunteer work but only for very brief stints?

Secondly, what level of achievement did they receive in these? For example, an individual who was on a varsity basketball team for four years, was made captain, and won a championship shows more grit than someone who played recreational basketball for a year and didn’t win any major awards.

One more example: An individual who started off as host, stayed with the restaurant for several years, and during that time made his way to the management team shows more grit than an individual who has more years of experience but it is spread over various establishments and each stint is less than a year in length.

The Hiring Process

A person with grit will not make you hunt them down. If anything, they will hunt you down!

The individuals who go out of their way to research your establishment before an interview, who follow up in a timely way for setting up interviews, and who follow up after their resume is sent and after they have an interview are the type of people you want on your team.

Do not overlook these individuals (even if they don’t have a ton of experience) because they are demonstrating respect, a keen interest in working for you, and dedication. Remember, skill can easily be taught but key qualities such as grit and growth mindset can not.

The Interview

There are some key questions you can ask during the interview process to determine if a candidate has grit:

“Tell me about a big goal you had and how you went about achieving that goal.” Look for specific details about how they reached their goal.
“Tell me about a time when you gave up on a goal, and why.” People give up on goals all the time. Perhaps it turned out to just not be feasible. Maybe a major life-changing event happened. A person with grit will typically only give up on a goal for a significant reason.
“Tell me about a major obstacle or challenge that you recently had to overcome, and how you did so.” The hospitality industry is full of obstacles and daily challenges both big and small. You need an idea of if and how your team members can overcome these obstacles.
“Who is a successful person that you admire, and why?” Does the candidate admire someone successful because of work ethic, grit, perseverance, bravery, etc.? Or do they admire the person for talent, success, material wealth, and popularity? What we admire in others is often what we try to achieve for ourselves.

These are all questions that will give you an idea of someone’s level of grit.

The Bottom Line

Turnover hurts everyone, and it hurts our bottom line. In our industry it is inevitable, but it doesn’t need to be a continuous revolving door of employees.

Start by attracting the right people, look for signs of grit during the hiring process, and then do your part by creating a rewarding and positive work environment to create longevity.

Is hiring stressful? You bet. But if you do it right, hopefully you won’t have to do it often! Here’s to personal and professional well-being. Cheers!

Image: Johnson Wang on Unsplash

August 20, 2021by David Klemt David Klemt No Comments

Leadership: The Other 10-second Rule

Leadership: The Other 10-second Rule

by David Klemt

Those who remember last week’s Friday post will recall that there’s more than one 10-second rule.

Interestingly, this “other” rule also relates to communication.

As we all know, communication is paramount to leading teams and building relationships with others.

Last Week’s Rule

Deceptively simple, last week’s 10-second rule focuses on easing tensions.

If a situation is about to boil over or is already out of control, going silent for 10 seconds can cool things off.

First, shutting up for ten seconds stops the argument cold. Second, it provides time for the person leveraging this tactic to respond rationally.

Third, it humanizes the other person. Rather than seeing an opponent, the person going quiet for ten seconds remembers that this is a team member they’re engaging.

Finally, people who use this rule say going silent tends to snap the other party out of their hostility.

Treating others with respect and dignity, along with encouraging open communication and a free flow of ideas, are hallmarks of a healthy workplace culture.

This Week’s Rule

There are, of course, similarities between this week’s rule and last week’s. Obviously, they both call for a ten-second “timeout” to talking.

Also, they both focus on humanizing the other person in the conversation.

I came across the other 10-second rule on the Accounting Today website. Accountant and author Kyle Walters writes that his rule is also simple: If Walters talks for ten consecutive seconds during a client meeting, he stops to ask an open-ended question. Crucial to the process is that Walters then gives the person answering time to talk.

Now, while Walters applies this to client meetings, it’s useful for conversation in general. As he points out, it breaks the bad habits of dominating conversations; giving off the impression that you’re selfish and don’t care about the others in conversations; and not listening to others.

Anyone who leads a team; needs to develop relationships with suppliers, distributors, contractors, investors, banks, inspectors, etc.; and wants to build relationships with guests knows that listening is crucial.

Sure, ten seconds doesn’t seem like a lot of time. However, take the time to actually see how many thoughts you can fire off in ten seconds. You’ll see how much talking for that “small” amount of time can quickly seem domineering if you don’t stop to include others in the conversation.

There’s also the “small” detail that you’re not having a conversation if you’re not listening—you’re just delivering a speech…and it’s probably not a good one.

It takes work to break bad habits. However, the benefit to your personal growth, leadership abilities, and business are worth the effort.

Image: Agê Barros on Unsplash

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August 13, 2021by David Klemt David Klemt No Comments

Leadership: What is the 10 Second Rule?

Leadership: What is the 10 Second Rule?

by David Klemt

Anyone who spends any time reading publications that focus on business will come across the “10 Second Rule.”

So, what is this rule? And why should you care?

After all, many entrepreneurs who enter hospitality do so partially to reject “corporate life.”

Adapt Rather than Reject

First, let me say that we understand the allure of eschewing the traditional business world. KRG Hospitality is itself a rebellion against corporate life.

However, we believe that some proven business strategies absolutely have a place in independent restaurant and bar operations.

Indeed, there are lessons independent and boutique operators can learn from their chain and corporate counterparts.

Conversely, independent and boutique entrepreneurs can teach chains quite a few things.

In fact, there are chain operations out there that go to great lengths to appear independent. They strive to leverage the perception that they’re local and small.

So, rather than outright reject corporate strategies and tactics, operators should adapt them to streamline operations, reduce costs, maximize profits, and thrive long-term.

Ten Seconds

Hospitality and foodservice are fast-paced—that’s not news. When front and back of house find themselves in the weeds, passions rise quickly. Often, a blow-up is on the menu.

The same can be true during shift and staff meetings. Perhaps one or two employees aren’t engaging, or maybe there’s a long-simmering issue that’s close to boiling over.

Or, perhaps a change to operations and expectations—the reason for the meeting—immediately ruffles feathers. This rule also applies to one-on-one discussions between ownership, management, and staff.

Engaging in a dust-up can be tempting. Not many people appreciate having their authority questioned or perceived slight left unaddressed.

The 10 Second Rule I’m addressing pertains to communication. Of course, we all know communication is often two things: crucial and difficult.

Simply put, the 10 Second Rule tells us to be quiet for ten seconds. If tensions are rising (often accompanied by volume), put an end to the situation by shutting up and counting to ten.

According to people who champion this rule, a few things happen: the person who implements stops feeding the tension; that same person can now respond without emotion; it provides time to remember that the other party isn’t just an opponent; and the other party tends to also cool off.

It’s a simple rule that can have a huge impact on workplace culture. A healthier, more positive culture leads to happier staff, which improves recruiting and retention. That’s a huge payoff for just ten seconds.

Image: Jason Leung on Unsplash

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May 31, 2021by David Klemt David Klemt No Comments

EEOC Clarifies Vaccine Stance

EEOC Clarifies Vaccine Stance

by David Klemt

American employers have the right to require Covid-19 vaccination as a condition of employment.

This is according to recent clarifications from the Equal Employment Opportunity Commission (EEOC).

Perhaps learning from yet more missteps from the Centers for Disease Control and Prevention, the EEOC is making their position clearer.

Requirements

Per the EEOC, requiring workers to get a Covid-19 vaccine doesn’t violate federal law.

However, an employer failing to provide “reasonable accommodation” in accordance with the Americans with Disabilities Act would be illegal.

According to the EEOC’s guidance update:

“Federal EEO laws do not prevent an employer from requiring all employees physically entering the workplace to be vaccinated for COVID-19, so long as employers comply with the reasonable accommodation provisions of the ADA and Title VII of the Civil Rights Act of 1964 and other EEO considerations. Other laws, not in EEOC’s jurisdiction, may place additional restrictions on employers.”

Additionally, employers who offer on-site vaccinations take on an additional responsibility. They must keep confidential any personal medical information gleaned during employee pre-vaccination screenings.

Of course, the agency’s guidance isn’t only for employers. Employees can access a fact sheet explaining pandemic-specific protections that are in place.

Incentives

The EEOC’s update also addresses the right for employers to offer employees vaccine incentives.

In short, the agency says incentives are legal as long as they’re not coercive. Of course, legal experts will argue that one person’s perception of coercion will differ from another’s.

Really, the only example the EEOC provides for what may constitute a coercive incentive is “a very large incentive” that may make an employee “feel pressured to disclose protected medical information.”

Per a survey by Arizona State University and the Rockefeller Foundation, two-thirds of employers plan to offer vaccination incentives rather than mandates. However, nearly half say they’ll implement mandates if incentives don’t work. Only one-third of survey respondents don’t plan to impose vaccination requirements on employees.

Challenges

Look, we all know America is a litigious society. Given that, it shouldn’t come as a surprise that some states have already banned vaccine requirements and passports.

Nor should it be a shock that lawsuits have been filed by employees challenging the legality of vaccine requirements. At least half of US states have introduced bills seeking to seek to limit COVID-19 vaccine mandates.

Operators have a lot to consider when it comes to vaccine requirements and incentives. For example, offering the incentive that fully vaccinated employees can go maskless at work while non-vaccinated workers must wear masks can be a form of discrimination.

Beyond legal challenges, operators must also contend with public perception and backlash. With the divisions plaguing America currently, operators have a lot to think about before requiring Covid-19 vaccines for employees. While some guests will view such requirements as a responsible move that protects employees, guests and the public, others will see it as a massive violation of personal freedoms and a form of tyranny.

Truly, this is a time when operators must seriously draw on their leadership abilities, empathy, and emotional intelligence.

Clearly, the topics of vaccine requirements and vaccine incentives necessitate careful consideration. This is an important leadership moment that hinges on an operator’s understanding of their team, their guests, and the market in which they operate.

Do not make vaccine decisions lightly.

Disclaimer

This content is for informational purposes only, and should not be used as legal or other advice. This article does not constitute legal advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law. This information is of a general nature and does not address the circumstances of a specific individual or entity. The reader of this information alone assumes the sole responsibility of evaluating the merits and risks associated with the use of any information before making any decisions based on such information.

Image: Daniel Schludi on Unsplash

April 23, 2021by David Klemt David Klemt No Comments

The Reality of Hiring Right Now

The Reality of Hiring Right Now

by David Klemt

Operators can add recruitment, hiring and retention among to the growing list of challenges they’re facing due to the pandemic.

Labor struggles aren’t exactly a shock to the hospitality industry.

However, the speed with which the many stark predictions of labor shortages and challenges across North America has caught some by surprise.

Outlook: Brutal

Fast-casual to fine dining. Independent to chain. Regional hospitality group to multi-national powerhouse.

No operator, no concept, no market appears immune to today’s recruitment, hiring or retention challenges.

It’s not the only reason but the federal boost to unemployment is exacerbating the situation. Restaurant operators across America have been reporting that their workers are making more on unemployment than they would make returning to their jobs.

It’s likely the hiring situation won’t improve until the end of August or start of September; the federal boost to unemployment is set to expire on September 6.

Of course, that points to another glaring industry issue: livable wages and benefits.

The pandemic didn’t cause the labor shortage and hiring problem on its own, but it certainly hasn’t helped anything. Some operators throughout North America say they’ve been hunting for workers for all positions for months.

Incentives & Bonuses

Operators are fighting for workers. To many reading this, that’s not a surprise. However, many operators report fighting to even get candidates to show up for interviews.

Famously, one McDonald’s franchisee in Tampa, Florida, is using a $50 incentive for interviews. If a candidate manages to follow through and show up for their interview, they walk away with $50.

During a recent conversation with Chef Brian Duffy (which we’ll be releasing as episode 33 of the Bar Hacks podcast), interview incentives came up. While it’s no $50 bonus just for showing, Chef Duffy has offered candidates free lunch for appearing for their interviews. And yes, he still struggles.

Interestingly, appearance incentives don’t appear to be working. What does appear to be working? Increasing starting wages, referral programs, apply-via-text functionality, and all manner of signing and performance-based bonuses.

The bonuses run the gamut. Show up for all your shifts for three or four months and earn a $500 bonus. Paying down student loans. Fronting the bill for culinary school. One restaurant in Alabama is offering an SUV to their top-performing worker later this year.

In addition to bonuses, wages are seeing a boost. Jobs that would normally start at $12 to $15 per hour are now offering starting wages of $16 to $18 dollars per hour.

No matter how one slices it, the situation leads to cost hikes across the board for operators. When costs increase for operators, prices increase for consumers. Margins shrink, the old cycle continues, the industry struggles.

Reality Check

Now, it’s simple to blame the pandemic for the current situation. To say it’s not a major factor would be incredibly disingenuous.

That said, the struggle to find and keep workers is also a culmination of decades-long, industry-wide problems.

Lack of diversity, inclusion, equality, living wages, opportunities, and transparency; failure to address social issues; inexcusable, threatening, and outright illegal behavior… All of this and much more contributes to the industry’s hiring and retention challenges.

That’s a criminally shallow summary of the situation—I’m well aware. Doug Radkey, president of KRG Hospitality, addresses the need to review and reset the industry in his book Hacking the New Normal. He takes a deep dive into rejecting the status quo in this industry.

My point is that operators can’t blame their woes solely on the pandemic, absolving themselves of responsibility.

Operators must take a hard look at themselves and their operations, and ask difficult questions. Doing so can be uncomfortable. But neither positive change nor growth come from resting in the comfort zone.

Image: Tim Mossholder on Unsplash

March 18, 2021by David Klemt David Klemt No Comments

Is Gen Z the Workforce Solution?

Is Gen Z the Workforce Solution?

by David Klemt

Is Gen Z the solution to the industry’s workforce problem?

That’s one big question posed during the 2021 Restaurants Canada Show.

A panel consisting of Philip Mondor, president and CEO of Tourism HR Canada; Adam Morrison, president and CEO of Ontario Tourism Education Corporation; Jody Palubiski, CEO of the Charcoal Group; and Lori Wilson, manager of people and change at BDO Consulting have answers.

The Problem

Canada’s hospitality industry is facing a labour shortage. In fact, that has been the case since before the pandemic.

According to several sources, the hospitality industry is Canada’s fourth-largest private-sector employer. And yet, there’s a labour crisis.

This is partially due to Baby Boomers retiring. As they leave the workforce, there’s a disparity in the number of people in Canada working or seeking work.

According to a January 2020 report from The Globe and Mail, there were at least 60,000 empty positions in foodservice before Covid-19 lockdowns.

Mondor concurs with that article’s sentiment. He expects “a very large shortfall” over the next year that could force the industry into a four-year recovery.

The Solution?

Neither Wilson, Mondor, Morrison or Palubiski see Gen Z as the solution to Canada’s labour shortage problem.

Now, that isn’t to suggest that operators and managers should dismiss Gen Z. Rather, Mondor suggests including this generation as they enter the workforce without viewing them as the only solution.

“Relying on youth alone is not going to meet the demand,” says Mondor.

Instead, Mondor posits that new Canadians—immigrants—will play a significant role in the hospitality industry moving forward. In fact, Mondor expects immigrants to make up 50 percent of Canada’s workforce.

Recruitment and Training

Palubiski says that what separates Gen Z from other generations is how connected and informed they are. Screen time provides Gen Zers plenty of information about social, regional and global issues.

To recruit Gen Z, Palubiski suggests brands and businesses be transparent about their stances on issues such as sustainability and the climate.

However, that approach to recruiting isn’t just effective when it comes to Gen Z—employees and guests alike want to know where a brand stands.

Morrison says that it’s important to be cognizant of the employment market. Knowing what people are being paid, even if an operator can’t match or beat that rate, is helpful. It’s also part of an effective strategy, says Morrison, to understand the ambitions of candidates to see if available roles will match their motivations.

Retention

Once an operator has built a team, the next step—training—is key to staff retention. And not just training for the specifics of one particular role in a restaurant or bar.

Rather, the panel agrees that this industry does a poor job of documenting transferrable skills. For example, operators can help develop employees’ leadership and conflict resolution skills (among many others) that they can take into other careers. Operators must explain that benefit to employees and help nurture it.

Additionally, the panel suggests looking at training and retention in the following ways to adapt and make businesses in this industry stronger:

Invest in people, don’t just hire them. That means training and developing their skills and careers.
View hiring and training as investments, not costs.
Everyone makes mistakes. True leaders admit their mistakes, fix them, and move forward.
Ask this question: Do your employees feel a greater affinity for this industry and your business after they’ve started working with you?

In parting, operators and managers should consider this: Palubiski had to furlough 950 employees due to the pandemic. A staggering 95 percent returned when they were called back. That is effective hiring, training, development and retention to emulate.

Image: Jason Leung on Unsplash