Employee Retention Starts with the Manager

By Philip Moricone | PDM Hospitality Consulting

One of today's biggest challenges in the restaurant industry is employee retention. Restaurant owners and managers constantly talk about how difficult it is to find good people and, more importantly, keep them.

But throughout my 14–15 years in restaurant management, hiring and retaining good employees was almost never a problem for me.

I learned early in my career that employee retention doesn't begin with wages, benefits, or incentives. It begins with management.

Three Types of Restaurant Employees

In my experience, there are generally three types of people looking for work in the restaurant industry.

The first is simply looking for a paycheck. They aren't particularly interested in the restaurant, the team, or building a future. They're looking for a decent wage, and if someone down the street offers another quarter an hour, they're gone.

The second isn't quite sure what they want to do in life. They need to earn a living, and the restaurant industry provides an opportunity. They may not initially see restaurant work as a career, but they can become excellent employees with the right guidance.

The third may not necessarily be passionate about the restaurant industry, but they take pride in their work. They want to succeed, learn new skills, accept responsibility, and get ahead.

I always believed the second and third groups were excellent candidates. With the right leadership, encouragement, and training, they could develop into outstanding team members.

You don't always hire great employees. Sometimes you develop them.

The Lunch Meeting I'll Never Forget

Back in the early 1980s, I was managing a very busy restaurant doing approximately $125,000 a week in sales. I had about 45 employees.

One day, the president of the company called and told me he wanted to meet for lunch.

I had absolutely no idea what was on his mind.

When we sat down, he asked me a question I wasn't expecting.

"How have you gone almost two years without losing a single employee?"

He told me this was practically unheard of in the restaurant industry.

What puzzled him even more was that a huge, beautiful new restaurant had opened within walking distance of ours. Despite the competition, not one of my employees had left.

He wanted to know why.

I told him, "We have something they don't have."

He asked, "What's that?"

I laughed and said, "You're eating lunch with him."

I was joking.

But I wasn't.

Retention Starts with the Manager

I had one tremendous advantage. I was the opening head manager, and I personally selected the employees who worked for me.

I wasn't simply filling positions. I was building a team.

Almost two years after opening, the restaurant was still impeccably clean, organized, and operating with the same high standards we established on opening day.

That didn't happen by accident.

Everyone understood what was expected. We followed company standards, maintained discipline, and created an environment employees were proud to be part of.

Most importantly, employees knew management was working with them, not simply giving orders.

I should mention that during this period, I did replace two managers. Leadership positions are no exception to maintaining standards.

Don't Manage Everyone Exactly the Same

One of the biggest mistakes managers make is believing that treating employees fairly means treating everyone exactly the same.

It doesn't.

People are different.

One employee may need encouragement. Another may thrive when given additional responsibility. One may respond well to direct criticism, while another may need a quiet, private conversation.

A good manager recognizes these differences.

This doesn't mean playing favorites or lowering standards. Everyone must meet the same expectations.

The difference is how you help each person reach those expectations.

Management is about understanding people, not just enforcing rules.

Make People Feel They're Part of Something

We operated a clean, organized restaurant with high expectations. Our employees took pride in where they worked.

That pride was contagious.

I believed every employee should understand that their contribution mattered, regardless of their position.

I had a dishwasher named Larry.

Larry actually followed me to three different restaurants during my career.

One day, he told me something I've never forgotten.

"You're the first manager who ever treated me like a human being."

Think about that for a moment.

Here was someone working one of the most physically demanding, least glamorous jobs in the restaurant, and he was happy to come to work.

He felt respected.

He felt appreciated.

He knew he mattered.

And he was loyal because of it.

If you want loyalty from your employees, you have to give them a reason to be loyal.

Before Blaming the Labor Market, Look at Your Management

Nearly 50 years later, I'm still friends and in contact with some of the people who worked for me.

That tells me we built something more meaningful than just a place to earn a paycheck.

When I hear restaurant operators complain that nobody wants to work anymore, I believe they should first take a serious look at their own operation.

Ask yourself:

• Is your restaurant clean, organized, and professionally managed?
• Do employees understand what is expected of them?
• Do you recognize good performance, or only point out mistakes?
• Do you accommodate reasonable scheduling requests when possible?
• Are your managers setting the example they expect employees to follow?
• Do employees feel respected regardless of their position?
• Are you addressing negative attitudes before they affect the entire team?
• Are you firm and fair, or are you simply a hard-ass?

That last question is important.

You can maintain high standards without intimidating people. You can demand excellent performance without embarrassing employees. And you can be respected without being feared.

I've always believed that one or two negative employees can affect an entire operation. Like bad apples in a basket, poor attitudes can spread if management allows them to.

But the same is true of good attitudes.

Pride, enthusiasm, teamwork, and professionalism can be just as contagious.

Employee Retention Is a Result, Not a Program

Too many restaurant operators look for complicated solutions to employee turnover.

They introduce incentive programs, hiring bonuses, and other temporary fixes. Competitive wages and benefits certainly matter, but money alone won't fix a poorly managed restaurant.

Employees also want stability, fairness, respect, and a workplace they can be proud of.

They want managers who listen, communicate, recognize effort, and lead by example.

During my management career, I didn't have a special employee retention program.

I simply believed in hiring carefully, training properly, maintaining high standards, and treating people with respect.

And it worked.

My philosophy is simple:

Take care of your employees, give them the tools to succeed, and create a restaurant they are proud to work in.

When employees respect their manager and take pride in their workplace, they have far fewer reasons to leave.

Before asking why your employees keep leaving, ask yourself what you're doing to make them want to stay.

PDM Hospitality Consulting

Practical restaurant solutions built on real-world management experience.

Philip Moricone

Phone: 978-766-6842

Email: PDMHospitality@gmail.com