By Lauren Bocage|Aug 23, 2024|10:56 am CDT

The war on talent is real and never ending in the restaurant industry. This article on Restaurant Business Online captures a great example of how Fourth customer, Cheesecake Factory leverages employee retention to drive traffic in tough market conditions.

Here’s how: 

Cheesecake Factory has seen steady traffic despite a tough environment for full-service restaurants as American consumers tighten their belts admits inflation. 

As many QSRs and full-service restaurants opt for a value approach to drive traffic, Cheesecake Factory is choosing a different recipe, and the secret ingredient is retention.  

Retention is a fundamental part of Cheesecake Factory’s success story and executives continue to zero in on execution and staffing. Latest reports show that improved retention among managers and hourly employees continues to grow, and it’s mirrored in record highs in guest satisfaction scores. Translation: happier and more seasoned staff yields better traffic and check averages even as prices rise.  

The ROI on improving retention can be tough to quantify but its impact ripples into every element of operations. Cheesecake Factory understands that retention is vital to the profitability equation for restaurants. The proof is pudding in an environment where diners are increasingly selective with their dollars.  

Cheesecake Factory aims to drive value in the guest experience rather than on price alone, reporting steady traffic despite a 4% price increase. Affirming that restaurant operators must incorporate retention into their profitability equation, especially if they want to be able to navigate challenging market conditions.  

So, what strategies should you deploy to strengthen retention at your restaurant?

Invest in professional development 

Create opportunities for advancement within your business. The Cheesecake Factory invests heavily in training and continuous development opportunities to keep employees engaged long-term. By providing your team with a clear pathway to skill development and growth your employees are more likely to stay long-term.  

Benefits, benefits, benefits 

Competitive benefits are non-negotiable for employee retention. Don’t stagnate with the standard offerings, do your research and stay up to date with the latest trends, like earned wage access. For example, SSP, a leading operator of food & beverage outlets in airports saw talent attraction and retention rise for 35,000 employees by implementing Fuego.  

If you’re a smaller restaurant concerned about getting crushed the costs of providing baseline benefits, consider a PEO provider for cost savings without sacrificing on offerings.  

Sophisticated tools that support their workload  

Don’t skimp on tools that ease the day-to-day of your team. Whether it’s as simple as a smart scheduling solution that gives employees more agency to manage their schedule or AI forecasting to save managers time and headaches. Investment in software that simplifies your team’s workload will repel burnout and reverberate into your retention rate and sales. See how Chili’s reduced manager turnover below industry average by saving them 30 mins per week with AI forecasting.  

Promote a positive culture  

Foster a supportive and inclusive environment where employees feel respected and appreciated. The recommendations above in tandem with initiatives that value employee feedback, recognize hard work and celebrate team achievements bolstering your team moral and loyalty.    

As the restaurant industry continues to navigate inflation and shifting consumer behavior, focusing on retaining skilled and motivated staff can be the difference between merely surviving and truly thriving. For other operators looking to replicate The Cheesecake Factory’s success, prioritizing employee satisfaction and retention will undoubtedly lead to stronger performance, even in the toughest of times.