Over three-quarters of restaurant owners in America – that’s 78% – are grappling with the problem of insufficient staff. In November of 2021, one million restaurant and hotel workers quit their jobs. In mid-2021 restaurant sector sales were down $110 billion. Currently a majority of restaurants – close to two-thirds – are operating at under 50% of their regular capacity with over 80% having had to shut off a section at the end of last year. The figures spell doom and gloom. The restaurant sector is facing a nightmare triggered by the prolonged labor crisis.
Rather than easing up, as many industry players had hoped, the problem seemed to have become more aggravated over the latter half of last year. This has made a huge dent on restaurant profits which have been steadily declining. Labor now accounts for a jaw-dropping 35% of restaurant costs. No wonder so many restaurants are teetering on the edge of loss – with some having already fallen over that cliff. This is where a food ordering apps could salvage your restaurant!
A Problem That Is Bigger Than The Pandemic
Of course, a shortage of labor is not something new to the American F&B industry – restaurant operators have consistently been challenged by inadequate staff. The Coronavirus pandemic exacerbated this situation, catapulting the labor situation from shortage to a crisis. In this context it is tempting to view the labor problem as one that will resolve itself once the pandemic eases. That kind of optimism is misguided.
In pre-pandemic times, restaurant workers were paid a very low wage. The regular influx of immigrants meant that, despite the high turnover, there was always someone who needed a job (and would be willing to work for cheap!). The revisions to minimum wage legislation and tougher immigration policies have put a spanner in the works for restaurateurs.
Compounding this is America’s ageing population and a declining birth rate. This is already a reality in Japan: more than 28% of the population is over the age of 65 causing a scarcity of restaurant employees. As a result, more and more restaurants have had to either reduce operating hours or close down altogether. Given the current population figures (there are over 50 million senior citizens in the US, making 16.5% of the population), America seems to be headed in the same direction as Japan.
A Matter Of Perspective
Given all this – the pandemic, the increase in minimum wage, the restrictions relating to immigration, the low birthrate and the silver population – scrambling to hire more staff is not an apt solution to the labor shortage. A more realistic and viable way forward would be to reframe the matter.
As a restaurant operator, you most likely view yourself as being short-staffed, but what if you were to be shown that you are, in fact, overstaffed? Before you raise your eyebrows, take a listen to this: all this time restaurants have been calculating staffing requirements on the premise that most of the work needs to be executed by humans. This figure can be dramatically reduced if technology is included into the equation. In other words, by factoring in the role technology can play in your restaurant, you can reduce the number of employees you need to successfully run your restaurant.
A Simple Solution
A fundamental and potent technological tool is the food ordering app. People love to order online – survey after survey have revealed that over three-quarters of people who order takeout prefer to do so through an app. When you have a food ordering app for your restaurant, the number of phone orders will reduce to a point where you will no longer need a designated phone operator. In fact, you will not need anyone to process remote orders because the entire chain, from placing the order to payment, can be completed via the app. Because the order can be relayed directly to the kitchen, no one has to physically carry the message across from the POS to the chef. With a food ordering app you can delete the column for order processing in your staffing sheet and the number of people you thought you had to hire will drop significantly!
A food ordering app is handy even in dine-in situations. Once a customer is seated, they can place their order and make payment through the food ordering app. Your wait staff need not spend time accepting orders and conveying them to the kitchen. This means you can either assign fewer staff to each service zone or increase the size of the zones. Whatever you choose to do, you will notice a reduction in the number of service staff required per shift.
If you want your restaurant to be successful in the midst of the raging labor crisis, you need to bring in technology. The best way to start is to create your very own, custom-branded food ordering app. Applova’s apps are cost-effective, easy to set-up and straightforward to use. End your frantic search for staff right here and now with an Applova app!
