Driving Engagement to Increase Retention in Restaurants

In Today at Work 2025, Issue 2, ADP Research crunched five years of ADP payroll data to identify turnover trends. Chief amongst the findings was that employee turnover jumps in the summer months between June and August. During this time, the turnover rate climbs to 3.56 percent from the 3.14-percent rate seen during the non-summer months. 

In the leisure and hospitality industry that includes restaurants, summer turnover is especially pronounced. Here, summer turnover sits at 5.04 percent, the highest amongst all industries analyzed by ADP Research. This rate is an increase of .76 percentage points compared to non-summer months, which is the second highest increase falling behind only the education industry. 

For restaurant business owners, what are some talent strategies to consider in order to increase retention not just during the summer months, but consistently?

One very specific area to hone in on is worker engagement. Previous research from ADP Research found engagement has a strong connection to a worker’s level of productivity and loyalty to their employer. 

In the restaurant business, guest experience begins with employee experience. A disengaged team member may still show up for their shift—but the lack of energy, attentiveness or urgency is quickly felt by customers. Worse, disengagement often leads to absenteeism, low morale and, eventually, resignation.

Employee engagement isn't about slogans or surveys. It’s about fostering a workplace where individuals feel connected, heard and valued. For restaurants, especially during the high-pressure summer season, engagement must be driven from the ground up—and the frontline is where it matters most.

Engagement doesn’t come from an app or an annual event. It comes from daily leadership—how managers show up, how they listen and how they connect. And in the restaurant industry, the team environment and how the team connects has a significant impact on the employee and in turn on the customer experience.

The Importance of Leaders and Teams

The latest research found that when a team leader is fully engaged, 65 percent of team members are fully engaged compared to when a team leader is not fully engaged and less than one percent of team members are fully engaged. 

Moreover, they found 55 percent of workers who feel they are on the best team also report full engagement, compared to 10 percent of workers who are not on the best team but also still report full engagement.

For restaurant businesses, optimizing your teams and ensuring leaders are engaged and fully committed to work is a great place to start when it comes to boosting employee engagement and ultimately increasing retention. 

For restaurant businesses, optimizing your teams and ensuring leaders are engaged and fully committed to work is a great place to start when it comes to boosting employee engagement and ultimately increasing retention. 

In the restaurant industry, shift leads, assistant managers and general managers are the faces of leadership for most employees. Their tone, availability and attitude set the cultural temperature. Leaders have dozens of ways to engage their staff—and these small behaviors can really add up.

For example:

• Greeting team members by name
• Asking how someone is doing—and listening to the answer
• Recognizing hard work in the moment
• Offering flexibility when life happens

These gestures communicate that the organization cares—and that the employee isn’t just another body on the floor.

Pre-shift meetings and team huddles are opportunities not only to review the day’s goals but also to build camaraderie. Recognizing yesterday’s wins, welcoming a new team member, or simply sharing a moment of humor can create a sense of belonging that improves performance and reduces turnover.

Providing Space for Feedback and Amplifying Voices

An engaged workforce is an involved workforce. When employees are invited to share ideas, raise concerns and offer feedback, they’re more likely to take ownership of their role. Restaurant leaders can foster this by:

• Asking for input on operational changes (e.g., shift flow, menu items, lobby layout)
• Conducting pulse checks or short feedback loops after busy weekends
• Including team members in small decisions that affect them

Employees feel engaged when they feel heard and because they’re the ones closest to the work, they often have some great ideas.

Small Perks, Big Gains

While engagement isn’t about incentives alone, thoughtful gestures go a long way. During peak periods, consider:

• Midweek morale boosters like staff raffles, recognition cards or company happy hours
• Flexible scheduling for standout performers
• Team appreciation lunches after high-traffic events

These are low-cost, high-impact ways to show appreciation and keep energy levels up.

The Power of Relationships

Restaurant managers who cultivate connection—by encouraging peer recognition, mentoring or team bonding—can see lower turnover and greater resilience during stressful periods.

Engagement is not a program. It’s a pattern of behaviors that build trust and belonging. Restaurants that prioritize engagement can not only retain staff longer—they create better service experiences for every guest. In an industry built on people, keeping employees connected is the ultimate competitive advantage.