How to Solve the 3 Most Common Restaurant Leadership Challenges

As a restaurant owner, your responsibilities run a mile long. You have a lot on your plate, from managing daily operations to planning ways to expand and create new growth. One of the most taxing parts of your job also includes managing your employees. Leadership in the restaurant industry is challenging, with the environment being fast-paced, at times high-stress, and with a high turnover rate.

While this is a pain point you likely feel, there is a solution – an investment in yourself and your leadership skills. By prioritizing your own development, you can overcome these hurdles to run a smoother, more successful business. 

Leadership Challenges in the Restaurant Industry

Challenge #1: High Turnover Rates

The restaurant industry has one of the highest turnover rates of any industry, reaching nearly 75%. There are many causes, but much of it stems from the poor culture in many restaurants. With the constant turnover, it makes regular hiring necessary, which has challenges in itself. Once you do hire new employees then you have to train them as well. This turnover and hiring cycle is costly and time-consuming for you and any managers on your team. 

Solution: Develop a Strong Company Culture

When people love where they work, they stick around. By becoming the kind of leader employees want to follow, your turnover rate will decrease while their loyalty increases. Some simple ways to get started include:

  • Create a positive and welcoming environment
  • Show that you value teamwork and employee input by rewarding it
  • Encourage employee engagement by involving them in decision-making processes where appropriate
  • Provide opportunities for growth and advancement

Another way to continue building that strong culture that will set you apart is to help employees take ownership of their own careers, even within your establishment by doing great work and moving up the ladder. Show them what that takes. Train them on what they need to do to make that happen. 

Consistent training and education are a massive part of creating a strong culture. If your team only receives training at the beginning of their employment and never again, they will not feel invested in and they will not stick around – adding to your turnover challenge.

Challenge #2: Managing Multiple Personalities

Your team is likely a diverse group of employees with varying personalities, backgrounds, and work styles. Managing all of these aspects can be challenging, especially while attempting to maintain a positive and productive work environment.

Solution: Take the Time to Understand Your Employees

One of the hallmarks of great leadership is the deep understanding that a leader has of their followers. If you want to be able to manage people that come from all walks of life, you have to take the time to understand them – their individual strengths, weaknesses, and specific abilities. Use this deep dive on your team to create a work environment that:

  • Puts the right people in the right positions based on their strengths.
  • Motivates them to work towards both shared and personal goals.
  • Provides precise feedback along the way to help them grow.

Challenge #3: Meeting High Customer Expectations

Your customers have high expectations when it comes to food quality, service, and ambiance. As a restaurant owner, it is your responsibility to ensure that all of these expectations are met or exceeded. This is nearly impossible to achieve when your staff isn’t prepared to deliver on those expectations. 

Solution: Train and Empower Your Staff

The proper training of your staff extends beyond the obvious elements – such as how to handle general operations daily, manage payments after a meal, understand and talk about the menu, etc.

This training improves your team’s people skills and customer service, empowers them to take great care of your guests, and connects those soft skills to their tips and job performance. 

Invest in Your Leadership Skills to Invest in Your Restaurant

While these are just a few leadership challenges you likely face as a restaurant owner, they are excellent starting points to determine changes you can make to get the maximum value from your team and lead your restaurant into a successful future. 

Total Touch POS is an easy-to-use restaurant management system designed by restaurant owners to meet bar and restaurant owners' distinct management and operational needs. Total Touch is the only hybrid POS that can help bar and restaurant owners and managers reduce costs and increase profitability when staff shortages and rising prices make hospitality operations challenging.

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