Winning the Talent Battle: How to Attract and Retain Top Restaurant Employees

In the fast-paced restaurant industry, talent is everything. Whether you run a fine-dining establishment in Manhattan, a boutique hotel in Chicago, or a fast casual concept in Los Angeles, your ability to attract and retain top-tier talent is directly tied to your success. With razor-thin margins, demanding customers, and an ever-evolving labor landscape, staffing the right people is one of the most significant challenges restaurant groups face. 

The High Stakes of Hiring and Retention

Hiring and retaining the best talent isn’t just a priority—it’s a business necessity. A recent survey of hospitality executives found that hiring top talent remains one of their most pressing concerns year after year. In major cities like New York, where the labor market is both competitive and volatile, the cost of employee turnover can cripple a business. Research suggests that losing a single frontline employee can cost an employer thousands of dollars, while replacing a manager or executive can run into the tens of thousands. Beyond the direct costs, high turnover affects team morale, service quality, and ultimately, customer satisfaction. 

So, what can restaurant groups do to ensure they are attracting and retaining the best employees in highly competitive markets?

1. Build a Strong Employer Brand

In a city filled with opportunities, why should top talent choose your restaurant over the competition? Your employer brand—how you convey your business’ ethos and culture to current and potential employees—is key. A strong employer brand communicates a clear mission, values, and workplace culture that, most importantly, aligns with the reality your employees experience day-to-day. Here are a few ways to boost your employer brand and improve your odds of attracting top talent:

• Talk about your values: More than ever, employees (particularly our favorite Gen-Z’ers) are looking for purpose-driven work. Emphasizing the north star that guides your business will attract employees whose personal motivation is aligned with yours. And those employees tend to be more loyal, more motivated, and to bring more positive vibes to your workplace.
• Highlight career growth: Many hospitality workers leave jobs due to a lack of upward mobility. Offering structured career pathways and mentorship programs can set your business apart – and spotlighting examples of employees who have grown internally will demonstrate that the growth actually happens!
• Showcase a strong workplace culture through employee testimonials: Restaurants that emphasize teamwork, respect, and inclusion tend to attract and retain employees more successfully, and who better to describe your culture than your own team! By leveraging testimonials from happy employees, you’ll let your culture speak for itself.
• Drive positive reviews: Online employee and guest reviews play a significant role in shaping your reputation in the industry. Be aware of what candidates see when they Google your business – both the guest experience and the employee experience matter.

2. Offer Competitive Compensation and Benefits

Pay remains a top driver for job seekers, especially in high-cost cities like New York and San Francisco. While many independent restaurants struggle to afford the robust offerings of corporate chains, there are creative ways to enhance compensation and benefits offerings:

• Conduct market research to ensure your wages are competitive: While research shows above-average wages do not necessarily boost employee satisfaction, meeting the market from a compensation perspective should be something all businesses strive for.
• Offer performance-based incentives: Profit-sharing, bonuses, and other incentives structures can motivate employees to perform at their best. Independent operators can be particularly well-suited to these types of incentives, as they have more flexibility to get creative with compensation.
• Provide meaningful benefits: Health insurance, paid time off, transportation stipends, and wellness programs can make a significant difference in attracting and retaining staff. Our best advice? Listen to what your employees value – it may surprise you. Enrollment in traditional medical insurance is typically low in the restaurant industry and other benefits – like pet insurance – may be more compelling to your employees.

3. Foster Transparency and Psychological Safety

When kitchen staff, servers, and management feel safe sharing concerns about everything from scheduling conflicts to workplace tensions, they’re far more likely to work through challenges rather than simply quitting. This is especially crucial in restaurants, where the fast-paced environment and customer service pressures can create significant stress. Approaches might include using regular pre-shift meetings to welcome staff feedback without repercussion, establishing clear protocols for reporting harassment or safety concerns, and creating opportunities for anonymous feedback. Having an experienced HR resource available to field and handle employee complaints sensitively is another key to boosting employee confidence and a sense of safety and security.

4. Set Clear Expectations and Lead Consistently

Great employees appreciate having structure and clear expectations. Every restaurant business should have a set of clear policies, service standards, and operational guidelines, including an Employee Handbook. This provides the framework for consistent execution and avoids the turbulence (and legal risk) that results from different leaders doing things in different ways. What’s worse than having no structure? Having a structure that isn’t followed. Managers need to be held accountable for being consistent and clear with their teams – they’re your ambassadors who create culture on the unit level.

5. Create a Culture of Recognition and Appreciation

Feeling valued is a major factor in employee retention. A culture that celebrates hard work, commitment, and excellence fosters loyalty and encourages long-term retention.

• Regularly celebrate achievements: Employee-of-the-month programs, bonuses for exceptional service, and daily praise from leadership can go a long way.
• Solicit and act on employee feedback: A two-way feedback system ensures employees feel heard and respected.
• Invest in team-building activities: Social events, staff meals, and wellness initiatives help create a sense of belonging and strengthen team cohesion.

6. Focus on Balance

The demanding nature of the restaurant industry often leads to burnout. In major cities where employees have countless job opportunities, businesses that prioritize work-life balance gain a competitive edge.

• Fair and flexible scheduling: Giving employees some control over their schedules reduces stress and improves retention.
• Manage workloads effectively: Avoid chronic understaffing, as it places undue pressure on employees and leads to turnover.
• Support mental health: Providing access to wellness resources, stress management training, and paid mental health days can boost morale and productivity.