There was a time when foodservice industry workers stayed in their positions for their whole (or close to whole) careers. They were deemed good jobs; steady, with benefits of helping consumers, having a chat at the bar, and a busy environment to keep them job satisfied. This generation was known as “Baby Boomers” (born from 1946 – 1964) and their values differed from the current crop of employees. Baby Boomers focused on working to ensure a better future for their families and were more career-focused. The next generation (and the largest current part of the workforce), known as “Millennials” (born 1981–2000), have different priorities. They look for a work-life balance, flexibility at work, and the opportunity for advancement.
Taco Bell Distinguished Professor Dogan Gursoy said, “Boomers live to work, while Millennials work to live.”
His findings also support prior research suggesting that Boomers respect authority and hierarchy, while Millennials tend to challenge authority.
“Boomers are willing to wait their turn for promotions and rewards, and they are very loyal. On the other hand, younger generations want immediate recognition through title, praise, promotion, and pay,” he said. “They also want a life outside of work; they are not likely to sacrifice theirs for the company.”
Nowadays, there is a huge turnover rate, particularly in serving and bar staff, and it is becoming harder and harder to find employees who will stick to their food service jobs for their whole careers. In fact, the dire situation of retaining staff has led to some commentators describing it as “in crisis.”
In 2024, the Restaurant Association of Ireland reported that 200 restaurants and other food-led businesses closed between February and April, with nearly 4,664 jobs lost as a result. The crisis in the food service industry rings true across the whole hospitality industry.
The goal of this article is not only to examine WHY there are high turnover rates but also to provide actionable strategies that food service businesses can implement to retain their top talent.
The turnover rate in the food service industry is a multi-faceted issue, with some of the problems being:
Wages in the hospitality industry are the lowest of any employment sector in Ireland. It has also been reported that many staff do not get adequate breaks and holidays.
Staff working in the accommodation and food service sector account for around 30% of all employees earning the national minimum wage. The Labour Force Survey estimated that some 40,400 workers in the sector were employed on the national minimum wage or less in 2022.
However, things are changing. For although in 2022 things were bleak for hospitality staff, the increase in minimum wage to €12.70 in 2024, as well as an increase in wages for receptionists (increase of 12% from €32,000 to €36,000), a wedding coordinator (up 6.7% from €37,500 to €40,000), and the highest increase being in the Chef position (up between 12-14% for varying roles), represents progress.
The balance between paying a living wage and supporting small businesses is a tricky one. On the one hand, workers can’t be expected to work for a less sufficient salary. On the other hand, businesses that are smaller may not be able to support said salary. Government intervention on how to handle this should, therefore, be more vigorous.
Specifically, migrant employees have been subject to exploitation, according to the Migrant Rights Centre in Ireland. There are many rights violations, including working in excess of 75-hour weeks, and there have even been cases of workers being paid as little as €2 an hour—with threats of deportation if they do not comply.
“There has been a surge in cases of migrant workers being exploited, forced to work without breaks or days off, and expected to put in weeks of 70 hours or more.”
The Migrant Rights Centre (MRCI) said its caseload of exploited workers has doubled in the space of a year. It was commenting after the Workplace Relations Commission found that a migrant restaurant employee went 48 days without a break in a Kerry food outlet. He was awarded €23,000 for gross breaches of his employment rights.
MRCI, which supported his case, said it has a further 25 similar cases in the pipeline—double the number of worker permit exploitation cases it worked on last year.
“Wage theft where they are not paid for work performed. Migrants may have poor language skills, be dependent on their employers for information, and immigration rules can weaken their economic power. Migrant workers can become normalized to poor working conditions and can fear reprisals if they complain. The unionisation rates of migrant workers are generally much lower than native workers. In 2023, the ESRI reported that 13% of non-Irish nationals were union members compared to 33% of Irish nationals.” Link to more.
This conflict arises when time devoted to one role makes it difficult to complete another role. It refers to not being able to maintain a good “work–family balance,” wherein workers do not have sufficient time at home with family due to work responsibilities.
The long and changing hours may make it difficult for workers with children, particularly if there is no childcare that they can avail of. Much of the sector is understaffed which, in turn, can lead to others overcompensating hours.
This leads to less productivity, higher stress, and thus higher turnover.
The long hours of food service workers can lead to burnt-out staff. Many are suffering from mental health problems because of this.
Stress and anxiety seem to be the most prominent symptoms, with the cost-of-living crisis (and financial instability) as well as the lack of time spent with families and unpredictable hours, being the culprits.
The high-adrenaline environment has resulted in many staff (for instance chefs, bar, and floor staff) having burnouts.
Suffering from mental illness leads to a lack of productivity and quality of work.
There is limited support within the workplace for employees that have poor mental health. There is little to no mental health training for the food service workers, even though it decreases the employee’s performance significantly.
Additionally, if we look at the mental illnesses of depression or anxiety, the general demeanor of the individual suffering is downcast, slower on their feet, and generally more unhappy when dealing with people. Since so much of the food service workers’ job is customer service, one would think that the general mood of employees would be important to the employers.
Studies show that dealing with rude customers leads to emotional exhaustion. There is a positive correlation between unpleasant experiences with customers and resigning from the employee’s position.
The lack of support from managers in dealing with such situations also affects the employees’ job satisfaction and increases turnover rates.
There are several reasons that employee retention in the food service industry is important:
If employees are better paid (to at least industry standard), they are more likely to stay in the job and perform better.
Employers provide average or above-average salaries for similar jobs in the market. Competitive pay can include bonus packages and other benefits, such as health insurance. Competitive pay is key to recruiting top talent and retaining staff. It also reduces turnover by encouraging loyalty. Workers paid fairly are more tolerant of higher-stress positions and longer hours.
Fair pay increases employees’ productivity, with 82% of surveyed workers reporting being more productive when paid fairly. A PayScale study found that employees are 50% more likely to leave a position if they believe they are being paid unfairly.
If employees hear that they are doing a good job, their motivation and engagement increase. This will boost morale in the workplace and build confidence in performing tasks. Constructive feedback given regularly fosters a healthy work environment and improves performance and behavior.
Employers should:
Stress leads to burn-out which in turn leads staff to perform poorly and leave. Training managers to provide better support can help. Also, promoting the use of sick leave when people are struggling and training people to build skills in stress management. Allowing things like a “mental health day” can go a long way with retaining employees as it shows the business cares about employee’s health and state of mind.
Normalizing the conversation around mental health encourages workers to speak up and confide in managers if they are having mental health issues. The goal is to avoid stigma around mental health and encourage employees to talk about issues with the manager as soon as they are experiencing symptoms. This early intervention can prevent burnouts and breakdowns.
Access to mental health resources such as fostering relationships with mental health charities that can provide support would also be helpful.
The promotion of physical activity and health and wellness programs (gym discounts etc.) contributes to mental health and therefore should be encouraged.
Flexible working hours may also help mental health. Part-time work, job sharing, and remote work can all help in this area.
Exit interviews when employees leave can give insight into the mental health challenges that employees face in their workplace.
Example questions may be:
Implementing consistent and meaningful recognition practices to show appreciation for hard work.
In a survey by SHRM on recognition in the workplace, they found that 68 per cent of respondents tested say that a recognition programme in their workplace positively affected retention. In other results, 56 per cent of respondents also experienced benefits in recruitment.
Bersin and Associates’ study found similar positive results; businesses that institute recognition programmes experience 31 per cent less voluntary turnover.
Rewards that are given such as bonuses or employee of the month programs, celebrating employees who go above and beyond in their work, can increase morale, happiness and ultimately retention in employees. Encouraging peer recognition where employees can nominate each other for awards, reinforces a culture of support and empowerment.
Guest feedback rewards is also a good way of showing appreciation for employees. For instance, if a guest mentions an employee by name, the employee may be rewarded with a small bonus, an extra day off etc.
Surprise rewards like days off or a free meal. Unexpected rewards boost morale and make an employee feel valued by the company.
In my own personal experience, when I worked in a non-profit organization, they had free meals once a month, bringing catering into the building with a variety of different food that suited the different cultures that worked there. They also celebrated the employee’s birthdays with two cakes and a small party for the department that was held at lunch time. This sparked conversations with colleagues that I didn’t know well, and the parties were also something to look forward to that would lift your spirits even if you had a trying day.
An increase in the use of technology is happening in every industry and the food service industry is no exception to this. In fact, to retain the younger generation of employees, investing in new technology could very well end up saving the company money as time goes on.
Investing in training programs (and learning platforms) where your employees can learn different skills relevant to the work they will be undertaking.
Smart Serve and different qualifications can be undertaken online with technology and a certificate can then be sent to prove the online course was successfully completed.
Technology also serves its purpose in staff rotation and allowing employees to book shifts or time off.
For temp staff, technology allows them to clock their hours on a timesheet and thus get paid accordingly in a quick, hassle-free way.
Automatic booking systems, AI generated customer service and the likes can reduce the burden on staff. Self-check in kiosks and mobile check-in also reduces the workload of staff so they can concentrate on other tasks, reduce stress and thus reduce burnout.
Task Management Apps allow employees to view and manage tasks which increase accountability and organization.
By implementing these technological solutions, the food service industry will reduce stress (and therefore burnout), improve efficiency and create a positive work environment.
If we take the above steps—offering competitive compensation, positive feedback, mental health support, establishing work-life balance, career advancement opportunities, employee empowerment, recognition and appreciation, and embracing technology—the food service industry will be able to retain staff and reduce turnover rates.
Staff retention is a multi-faceted problem that requires a multi-faceted solution. While these changes won’t happen overnight and may involve upfront costs, businesses will ultimately recover these investments many times over through improved staff retention, productivity, and morale.
Ultimately, while there are areas requiring reform by both the government and employers in the food service sector, the industry continues to attract job applicants. If we implement these changes and treat employees with the respect they deserve, we can improve their well-being, retain talent, and elevate the overall food service sector in Ireland.
Ciaran Kilbride is the CEO and Founder of Caterboss, Ireland's leading supplier of catering equipment. With years of experience in the food and hospitality industry, Ciaran established Caterboss in 2017 to provide high-quality, reliable equipment tailored to the needs of professional caterers. His commitment to innovation and customer service has helped Caterboss grow into a trusted name, known for anticipating industry trends and consistently meeting the needs of its clients.
