How Quick Service Restaurants Can Respond to the Labor Shortage

Quick service restaurants (QSRs) in the United States know something about managing through a crisis. In 2020, the QSR industry was rocked by the COVID-19 pandemic, and QSRs worked through it by capitalizing on drive-through lanes, curbside pickup, delivery, and other no-contact options while their dining rooms were closed. Now QSRs are grappling with a new problem: finding and keeping employees.

What’s the Nature of the QSR Labor Shortage?

QSRs cannot find enough people to work in non-management positions such as cashiers and grill cooks. More U.S. workers are quitting their jobs than at any time in recent history, and in a recent survey, 40 percent of QSRs reported that they’re struggling to hire workers. As a result, even as the U.S. economic engine picks up steam, many QSRs are operating at reduced capacity at a time when they should be ramping back up.

The QSR industry has always experienced higher turnover rates compared to other industries. The challenge of hiring people to is one more headache for franchise managers. Why are QSRs struggling? Generally the reasons cited come down extended unemployment benefits acting as a disincentive for people to seek a job at a QSR; and a lingering reluctance to return to work in a physical environment that requires contact with other people. Those factors may subside later in 2021, as unemployment stimulus programs lapse and more people are vaccinated. But that’s small comfort to QSRs now.

How Are QSRs Responding?

QSRs are responding mostly by offering more material incentives such as higher wages, signing bonuses, and more flexible hours. A McDonald’s in Florida recently paid people $50 just to show up for a job interview. In addition, QSRs are getting more generous about offering referral bonuses to employees. Other QSRs are looking at ways to fill open positions with automation. For instance,  Cracker Barrel has launched a mobile app that lets customers pay for meals, and  McDonald’s is testing automated drive-through ordering at 10 Chicago locations.

But QSRs have other options.

What Are Some Other Ways QSRs Might Address the Labor Shortage?

QSRs are some of the most brilliant marketers in the world. At this point, many could offer a master class on marketing tactics such as social media branding and paid search. More QSRs need to apply those tactics to recruitment. For instance:

• Build a detailed persona of your typical hire. Who are they? What are their emotional wants and needs, including but not limited to compensation and a need for personal safety? Are there unstated wants and needs that you wouldn’t know unless you did some field testing, such as training?

• Align your recruitment with the new hire’s journey. It’s not enough to understand who they are. You also need to know more about where they spend their time, online and offline. What digital sites and apps consume their time? (Hint: they’re likely spend an inordinate amount of time on Twitch). We know that QSRs know how to rock mobile apps to entice diners with new menu ideas and promotions. They can do the same by reaching potential employees the same way.

• Create empathetic content. Being empathetic means creating messaging that resonates with their emotional wants and needs. “Work for us and make more than the restaurant down the street” may not be a sufficient message to fill a server job if potential employees are concerned about their health. Instead, it might be more prudent to emphasize a commitment to health and safety, backed by statistics demonstrating just how safe your QSR is to work at. Empathy also means connecting with their values. Increasingly, potential hires across all industries are responding to businesses whose values align with theirs. Especially for younger employees, this means playing up your commitment to making society better and addressing issues such as racial injustice. How does your business give back to the community, and how can your employees participate in what you’re doing? The most successful local franchises are typically well connected to their communities and in a position to offer interesting and meaningful ways for employees to give back.

• Improve your brand from the outside in. Do constant pulse checks with your employees. What are their values? Do your stated values align with theirs? What gaps exist between what they want and what you offer? It’s essential to motivate your team to stay and to grow because it’s both the right and sensible thing to do. They’ll become more enthusiastic brand ambassadors, including an increased willingness to participate in formal recruitment through your and their socials. Studies show that referrals are more profitable; so make sure your employee culture is sound.

• Tell Your Story. Don’t be shy about discussing publicly your commitment to your own people, as Raising Cane’s did during the height of the pandemic. When people visit your site, will they hear about your commitment to your people in your own words?

For More Information

IDX has deep experience helping QSRs build all aspects of their brands, ranging from recruitment to marketing. We recently published a guide to help QSRs, The 2021 Digital Marketing Guide for Restaurant Chains, which contains practical tips for how restaurants can thrive in the digital space in disruptive times and beyond. Download it here. To improve the way your business attracts and keeps people, contact IDX. Our HR & Talent Acquisition solution helps businesses succeed with creative outreach that transforms brand perceptions with job seekers and employees.