In the face of inflation, quick service restaurants (QSRs) are feeling the pinch, especially when it comes to rising food costs. Staples like eggs and dairy have seen significant price increases, putting pressure on operators to find ways to protect their already thin profit margins. While some restaurants may be tempted to cut costs by reducing employee training and development budgets, this short-term strategy can have long-term negative consequences. Instead, investing in structured training programs, including microlearning and leadership development, can lead to better retention rates, reduced waste, and improved operational efficiency.
Employee turnover is a major financial burden for QSRs, with the average cost of turnover for a frontline employee exceeding $6,000 per year. For a QSR with 100 employees and a 75% turnover rate, this can amount to nearly $439,800 annually. By prioritizing employee training and development, QSRs can improve productivity, minimize waste, and strengthen overall operations, ultimately helping to mitigate the impact of inflation.
By focusing on upskilling and leadership development, QSRs can see improvements in service speed, order accuracy, and waste reduction. This not only helps retain top talent but also creates a more efficient workforce that can counteract the pressures of inflation. Operators that invest in employee development are better positioned to weather economic challenges and maintain a competitive edge in the market.
Training and development should be viewed as a cost-reduction strategy rather than an expense. Only one in four QSRs currently offer career development opportunities, despite their proven ability to improve retention rates. Implementing practical, on-the-job training programs, such as microlearning and cohort-based learning, can equip employees with the skills they need while keeping operations running smoothly.
Cross-training employees to perform multiple roles can enhance scheduling flexibility and reduce disruptions caused by unexpected absences. Leadership development is also crucial, as strong, capable leaders can maintain consistency, resolve challenges, and support employee growth. Investing in shift supervisors and future managers can help create a more stable workforce and reduce costly turnover.
To implement an effective employee development program, QSRs should start by analyzing performance data, customer feedback, and employee input to identify skill gaps. Online learning platforms, microlearning modules, and workforce education partnerships can provide employees with the necessary tools to succeed. Tracking the effectiveness of these programs through key performance indicators and direct feedback is essential to ensuring they deliver real value.
In a challenging economic climate, cutting training budgets may seem like a quick fix, but it often leads to higher costs in the long run. With turnover costing QSRs up to $150,000 annually, investing in employee education and training is not just a smart business decision—it’s a necessary one. QSRs that prioritize employee development will retain talent, control costs, and thrive in the face of rising food prices.
About the Author:
Patrick Donovan, Chief Operating Officer at InStride, is an experienced executive with a track record of leading mission-driven organizations. With a background in leveraging technology and services to drive impact, Patrick oversees customer success, implementations, and internal client marketing at InStride. His expertise in operations and leadership development positions him as a thought leader in the industry.
In conclusion, investing in employee training and development is a strategic approach for QSRs to navigate the challenges of inflation and rising food costs. By prioritizing upskilling, leadership development, and practical training strategies, QSRs can improve efficiency, reduce turnover, and ultimately thrive in a competitive market.