Attracting and Retaining Recent Grads

Restaurant operators have an opportunity to take advantage of a challenging post-grad job market by matching culture, offering robust benefit packages with potential career mobility, and tapping into technology as a tool for efficiency. By attracting recent graduates, who may be seeking flexible work, career development, and meaningful experiences, restaurants can cultivate a new talent pool.

“One of the most critical aspects of being a successful franchise restaurant operator is having a culture that promotes employee retention across all aspects of the labor pool,” said Mark Wasilefsky, Head of Restaurant and Franchise Finance at TD Bank. “From a hiring perspective it's important to recruit and retain those that best match your culture and who are most likely to benefit from it.”

Given the current economic climate where restaurants, especially in QSR, fast casual, and casual dining, are struggling with shrinking customer traffic, increased competition, inflation, and a softened lower-income bracket, hiring new graduates presents a strategic opportunity, Wasilefsky noted. 

Added Benefits

Operators are discovering that benefits such as health insurance, 401K programs, group life insurance, and disability insurance are often worthwhile investments that can significantly boost retention, particularly for long-term, brand-committed employees, Wasilefsky said.

“They can effectively reduce turnover, which can be very costly for a restaurant franchisee in terms of training new people, lost productivity, lost efficiencies and customer satisfaction.”

Internal training and communication are also crucial.

“There is also a trend toward promoting internal talent, with operators offering specialized training programs to convert service staff into managerial roles, creating long term, dedicated employees that can improve internal operations and provide better customer service by feeling a ‘part’ of the business.”

Beyond Conpensation

Beyond competitive compensation, programs that emphasize work-life balance, such as flexible scheduling, career development, mentorship, and wellness initiatives, are strong incentives. Fostering an inclusive culture where new graduates feel a sense of belonging can also significantly improve retention, according to Wasilefsky. Additonally, employers demonstrating a commitment to sustainability and community engagement are highly valued by many graduates.

Leveraging technology to improve efficiency and address labor shortages such as utilizing tracking systems for streamlined hiring and scheduling software to manage shifts effectively can also be a way to retain top talent. 

“AI-driven tools for training, onboarding processes and especially scheduling are materially improving labor efficiency, which is especially critical given the rise in the statutory minimum wage over the past four years.”

Career Opportunities

Recent grads should consider opportunities in the restaurant landscape because the industry provides valuable soft skills such as customer service, teamwork and problem-solving, which can be beneficial regardless of future career paths, Wasilefsky noted. Additionally, the industry is rich with networking potential, offering connections with diverse professionals.

“Many graduates may not realize the upward mobility available within the restaurant industry, with many leaders starting in entry-level positions and working their way up. Recent graduates tend to prioritize career growth opportunities, meaningful work experiences and alignment with personal values over just high salaries. They often seek roles that can provide flexibility, social engagement and opportunities to make an impact.”