There’s abundant anecdotal evidence to suggest that restaurant turnover is one of the most difficult problems faced by owners and management.
And unfortunately, the statistics confirm the stories.
Figures produced by the National Restaurant Association suggest that the current restaurant staff turnover rate is around 75 percent. Worse, the cost of hiring and training an entry-level replacement staff can be as much as $3,500.
In a business of fierce competition and notoriously low margins, the retention of experienced and well-motivated staff must, therefore, be a key priority.
Why is Restaurant Turnover So High
While head chefs in fine dining establishments may command substantial salaries, the hospitality industry generally is known for offering relatively low basic rates of pay.
And to the extent that a good restaurant POS system helps to make your restaurant more profitable, this will increase your scope to increase pay rates
Surprisingly, though, low pay isn’t one of the factors most often cited by quitting employees. More common complaints are that staff felt inadequately trained or qualified, were under-appreciated or neglected, or generally found the work less enjoyable than they had expected.
Good management practice in trying to make staff feel a valued part of the business and giving them appropriate responsibility may go a long way towards addressing these issues, but the right restaurant POS can also help.
How NorthStar POS Can Help
Reward your most productive staff
The NorthStar POS system allows for the production of numerous customizable reports, which enable you to see at-a-glance which members of your team are performing exceptionally well in terms of general productivity, table turns, upsells or loyalty program sign-ups.
Armed with this information, it’s then a simple matter to reward them with cash bonuses or extra vacation days. Announcing these kinds of rewards at team meetings is a powerful motivator, not just for the recipients but for all staff members
Increase tipping levels
Tips are a major element of remuneration for most restaurant industry staff and therefore a major factor in keeping staff happy and reducing turnover.
With that in mind, modern POS systems like the NorthStar are specifically designed to facilitate and encourage tipping.
The touchpads allow customers to select instantly from one of several suggested amounts, all while chatting happily to their server. The psychological phenomenon known as “anchoring” means that customers naturally tend to go for the middle option, and knowing this can enable you subtly to increase average tipping levels.
There is also an element of social pressure at work here; as probably few customers will be brave enough to hit the “no tip” button, especially in the presence of their server.
So it’s perhaps not surprising that a 2014 study by researchers at Iowa State University found that modern restaurant POS systems could help increase tipping by as much as 38 percent.
Improve rostering efficiency
In addition to improving direct staff rewards, NorthStar POS reports can also help identify those sessions that staff members have found particularly difficult and stressful; those which, for example, saw an unusually large number of dishes being returned or customer walkouts and complaints.
These kinds of problems are often related to understaffing during busy periods, in which case the POS system can help identify and remedy this by suggesting simple changes in rostering.
Conversely, overstaffing during slack periods can be just as bad for morale. Few servers really enjoy standing around with little or nothing to do, and in quiet periods there is of course much less opportunity to earn tips.
Generally, the opportunity to work flexible shift patterns is one of the key attractions of working in restaurants, particularly for students and seasonal workers. The NorthStar POS system can help facilitate this by empowering staff to request and trade their own shifts, input their availabilities and make requests for time off.
Naturally, this efficient rostering also makes life much easier for management.
Reduce job Stress
Restaurant workers commonly cite slow, cumbersome or buggy technology as one of the main irritations in their job.
Dealing with demanding customers in a crowded, noisy space is stressful enough without having to battle with unreliable technology. So having a modern efficient pos system which makes staff members’ jobs as easy as possible is in itself a great aid to retention.
The NorthStar POS makes it a breeze for staff to place orders and upsells with kitchen and bar and to receive an immediate notification of any changes to the menu. Customer payments and tips can be accepted right at the table helping to maximize table turns and make staff feel a vital part of an efficient and successful operation.
Find Out More
In all these ways, a modern restaurant POS system can be a powerful tool for increasing both staff engagement and customer satisfaction.
CBS NorthStar has been a leading provider of innovative restaurant technology for more than 25 years, and our current systems include a wide variety of features to help both management and staff achieve optimum productivity in their businesses.
To find out more, call us on 800-551-7674 or visit us online here to request a live demo.