Strategic Workforce Planning: Optimizing talent for quick-service restaurants
Hiring trends are posing challenges for quick-service restaurants (QSRs)
Hiring trends are posing challenges for quick-service restaurants (QSRs)
Navigating today's dynamic and fast-paced hiring landscape is becoming an increasing challenge for quick-service restaurants (QSRs). Top strategic workforce planning (SWP) related priorities in this sector include:
Preventing and addressing high turnover
Responding to state-by-state workforce requirements
Filling open roles proactively and at a faster pace
Upskilling employees to retain them for long-term careers.
By simplifying the application process and removing the barrier of account creation, we’ve seen a 20% increase in applicant volume. This allows us the flexibility to interview and hire talent in the same day.
Nicki Tafolla
Talent Acquisition Leader, Whataburger
California’s quick-service restaurant landscape: A bellwether of nationwide challenges
Strategic workforce planning can be a major challenge for QSRs in California, specifically due to the state’s higher than national average minimum wage laws that specifically target fast-food restaurants.2 The current $20 minimum wage for fast-food restaurant employees has led to increased labor costs that can significantly impact businesses' profitability.
In addition, the predictive scheduling laws enforced in the state make it harder for restaurants to rapidly adjust staffing levels to cater to fluctuating customer traffic.3 These combined factors put a strain on employers, limiting their short-term flexibility in managing their workforce and ultimately requiring stronger, longer-term, predictive workforce planning.
CA turnover and tenure
California experiences a higher turnover rate in this industry compared to other states. However, further analysis shows that as CA employees advance to more senior roles, their average tenure also increases.1 This suggests that CA employers can potentially address high turnover issues by focusing workforce planning efforts on employees at the more junior levels.
1 Source: Data sourced from Revelio, focusing on major United States Consumer and Retail organizations, accessed March 2024.
2 CNBC, Kate Rogers and Amelia Lucas, "California fast-food workers are now making $20 an hour. Other businesses might have to catch up" (April 1, 2024).
3 LA Times, Rebecca Plevin, "L.A. law aims to make retail workers’ schedules more predictable. Is it working?" (February 17, 2024).
Success is highly dependent on the alignment of talent to an organization's strategic imperatives-hiring the right individuals, with the requisite skills, at an optimal cost, precisely positioned, and at the exact moment needed. Workday's robust suite of tools are designed to tackle the unique industry challenges for Quick Service Restaurants.
Valerie Winkler
KPMG Principal, Workday
Foundational inputs critical to enabling strategic workforce planning
To confront difficult talent and business headwinds, consumer products and retail organizations have an opportunity to better align their workforce strategy to their business strategy. Selecting an SWP technology solution alone won’t solve your workforce needs. Rather, here are some suggestions for areas to focus on to build an efficient future-ready workforce within program budgets:
Key SWP Inputs
Job classification framework defines job families, titles, and levels for better understanding of the workforce.
Skills-based workforce strategy enables detailed planning, identifies gaps, and supports upskilling.
Data-driven workforce strategy evaluates workforce alignment with business objectives and informs future workforce planning.
The frontline worker and consumer experiences are essential in achieving and maintaining brand loyalty. Workday, together with KPMG, directly empowers frontline workers by aligning with their values, providing continuous opportunities to learn new skills, and enabling them to have their desired work-life balance without sacrificing the needs of the business
Keith Pickens
Global Managing Director, Retail & Hospitality, Transportation, Workday
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Strategic Workforce Planning: Optimizing talent for quick- service restaurants
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