With HR intervention, restaurants seek to retain talent

Industry leaders say restaurants need to follow what the tech industry did: offer innovative perks and handsome salary packages.

Food outlets are revamping their human resource (HR) policies, providing employees more career opportunities and cash rewards, seeking to arrest attrition and retain talent as they return to normal in the aftermath of the coronavirus pandemic.

After losing 2 million employees at the height of Covid-19, the restaurant and food services industry is expected to reach a 10-million-strong workforce by 2025.

Frequent job hopping has deprived the food services market of much-needed white- and blue-collar workers. That’s painful for an industry that depends on employee references to fill positions. And once an employee leaves, the people he or she referred leave as well.

Job-hopping is not limited to moving from one food outlet to another. Employees are also switching sectors in search of better career opportunities.

“After Covid, there is a visible change in people’s lives, goals and approaches. Also with lower work opportunities, people from another sector are rushing into sectors they haven’t excelled in,” said Debaditya Chaudhury, Managing Director and Chief Executive Officer of Chowman, a Chinese restaurant chain.

Additionally, both skilled and unskilled workers aspire to eventually work in hotels with high brand value or seek an immediate promotion, adding to the motivation for job hopping.

Increasing competition among employers to hire talent from the food and beverage sector is “creating a spike with manifold repercussions,” said Devansh Nahata, Chief Operating Officer of Justbe Resto Café, a Bengaluru-based vegan and vegetarian outlet.

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The real change is that the best and brightest talent is looking at real and available opportunities outside of India — on cruise ships, working at Amaya, the Michelin star Indian restaurant in London, or moving to Toronto, Canada, for example, said Harry Hakuei Kosato, founder of Sushi and More and Japanese Cuisine Goodwill Ambassador.

HR intervention

Kolkata-based Chowman implemented a series of upskilling programmes for its employees and eventually promoted almost 100 to new roles between November 2022 and February 2023. Promotions ranged from captain to fleet member.

As employees, especially those below the mid-level, usually think they are unrecognized and unappreciated, the restaurant chain has opted for a Speak to MD initiative. A phone number has been provided to each employee on which they can directly get in touch with Chaudhury and voice their thoughts in confidence.

Bengaluru-based Justbe Resto Café said it provides opportunities for employees irrespective of the department to move up the ladder in their field or through inter-departmental transfers based on performance and motivation.

During the initial days, a career advancement path is charted and achievable goals are set for their promotion.

As the competition lured experienced candidates by offering extra perks, some restaurants opted for a holistic retention policy. In their feedback to management, workers usually complain about poor amenities and inconsistency that hurt service quality.

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Mumbai-based Shiv Sagar started by organising regular workshops on skilling and quality-control processes and improved staff amenities.

“An average hike for the employees at our restaurants is between 2 percent and 10 percent. Every year we hire about 20 percent more employees than the previous year. With our rapid expansion plans in place over the next couple of months, this number is going to go up significantly, as we continue to grow our Shiv Sagar family,” said Nikita Poojari, Director of Shiv Sagar Group.

The future

Despite HR interventions, some food and beverage industry leaders are concerned the attrition rate will only rise. They say restaurants need to follow what the tech industry did: offer innovative perks and handsome salary packages.

For Chowman’s Chaudhury, the key factor shaping the talent market is the changing expectations of workers. Many employees laid off during the pandemic have had time to reflect on their careers and what they want from their work.

“There is likely to be increased demand for flexibility, work-life balance and job security,” he said.

Some are hopeful of a turn for the better. With newer customer segments opening in the hospitality and restaurant industry, supporting job supply, Nahata of Justbe predicts a talent surplus with stable demand since the industry’s recovery in 2022.

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“On the other hand, there might be a gap in the market for unskilled workers to upgrade their skill levels and search for relatively higher paying jobs – that is a longer-time horizon eventuality, yet not spiking the demand significantly,” he said.