Jonathan Doughty is a global thought leader, consultant, speaker, moderator and C-suite executive in the foodservice and leisure sectors working around the world in retail transit and leisure. In this issue of RLI, he discusses the F&B industry after a turbulent few years.
The restaurant industry has always been built on people. Whether they are chefs crafting dishes, servers delivering memorable experiences or managers keeping everything running smoothly, staff are the greatest asset a restaurant can have. But since COVID-19, employing people in this sector has changed dramatically. Finding the right quality of candidates, recruiting them effectively, training them to standard and – perhaps hardest of all – retaining them – has become a serious challenge.
Below are the five key changes in the industry since COVID, each with its impact and a practical suggestion for how restaurants can respond:
1. Shrinking Talent Pool
What’s Changed: Many experienced hospitality workers left the industry during the pandemic when restaurants shut down or drastically reduced operations. The result is a smaller pool of skilled and experienced candidates.
Impact: Restaurants are competing for fewer qualified applicants, which drives up wage demands and lengthens recruitment timelines. Businesses may be forced to hire less experienced staff, which can affect service quality and customer satisfaction.
Suggested Solution: Build a long-term pipeline rather than relying solely on reactive hiring. Partner with hospitality schools, offer internships and develop “earn while you learn” schemes to attract newcomers. A structured training program that turns entry-level hires into skilled employees over time can help fill the experience gap while fostering loyalty from day one.
2. Higher Wage Expectations
What’s Changed: With inflation, rising living costs and a competitive hiring environment, wage expectations have surged. Candidates who might have accepted minimum wage pre-COVID now expect significantly more – not just in base pay but in benefits, flexibility and work-life balance.
Impact: Tighter profit margins are putting pressure on operators. Wage increases can’t always be matched by equivalent price rises without alienating customers. This forces restaurants to reconsider their staffing models and operating hours.
Suggested Solution: If matching top-tier pay isn’t possible, offer other tangible benefits: flexible scheduling, professional development, staff meals, wellness support or performance bonuses. Making the job more appealing through a holistic package can offset lower base pay while improving retention.
3. Shift in Employee Priorities
What’s Changed: Pre-pandemic, long hours and late nights were widely accepted as part of the hospitality lifestyle. Now, many employees – especially younger workers – prioritise flexibility, predictable schedules and mental health.
Impact: If restaurants cannot meet these new lifestyle expectations, they risk losing staff to other sectors that can. This can cause instability in teams, higher turnover costs and inconsistent service quality.
Suggested Solution: Adopt smarter rota planning. Use scheduling software to balance business needs with staff preferences. Introduce split-shift swaps, predictable scheduling and optional overtime rather than enforced long hours. A culture that respects personal time helps staff feel valued and reduces burnout.
4. Increased Training Demands
What’s Changed: With more new hires entering without prior hospitality experience, restaurants must invest heavily in training – not just in service skills but also in food safety, customer communication and teamwork.
Impact: Training takes time and money and when turnover is high, it can feel like pouring resources into a leaky bucket! Poorly trained staff can damage the guest experience, harm the brand and increase operational risks.
Suggested Solution: Standardise and streamline onboarding. Use a mix of in-person shadowing and digital training modules so staff can learn faster and retain knowledge. Create clear competency checklists so new hires understand expectations.
5. Retention as the New Battleground
What’s Changed: Even after successfully hiring and training staff, keeping them is harder than ever. A more mobile workforce, constant external job offers and the lingering effects of pandemic uncertainty mean employees are more willing to move on if their needs aren’t met.
Impact: High turnover costs restaurants far more than recruitment ads – lost knowledge, disruption to service and the need to retrain replacements add up quickly. Constant churn also damages team morale.
Suggested Solution: Shift from “keeping staff happy” to “keeping staff engaged”. Conduct regular check-ins to understand career goals, frustrations and ideas. Offer clear progression paths – such as stepping from server to shift leader within a year.
The Bigger Picture: People Are Still the Heart of Hospitality
The post-COVID restaurant industry faces a paradox: people are more vital than ever to delivering exceptional dining experiences, yet attracting and retaining them is increasingly complex. Each of the five changes above – shrinking talent pool, higher wage expectations, shifting priorities, increased training needs and tougher retention – interconnects. For example, a smaller talent pool drives up wages; higher wages strain budgets for training; poor training leads to turnover; turnover shrinks the talent pool even further.
While menus, interiors and marketing campaigns can evolve, the heart of a restaurant will always be its people – and the businesses that keep that heart beating strong will be the ones still serving satisfied customers in the years to come. #WELOVEOURPEOPLE
