Managing a restaurant is a real test of your entrepreneurial, behavioral, and management skills. The day offers no time to rest for the owners, as they juggle multiple tasks from leading the human resources team to managing the finances, all while running a successful restaurant that attract customers on a daily basis.
The toughness can be illustrated best by the fact that 60% of restaurants fail or change ownership within the first year of business. Additionally, 80% of restaurants fail within the first five years. Why?
According to a Toast survey, 46% of all restaurant owners list hiring, training, and retaining restaurant staff as their #1 challenge. Training is undoubtedly a tiring process which makes use of manuals, shadowing, observing, and several other inefficient methods in order to train employees. This leads many to restaurateurs and management teams to scratch their heads, looking for an easier way.
Fortunately, software exists that puts all employees, from servers to hosts, on one single database, allowing managers to assign training, track progress, and administer corrective action. This software is known as restaurant LMS, which stands for learning management system. A restaurant LMS revolutionizes how employees are trained by ensuring that they are receiving the proper training needed for their job, and complete that training in an appropriate amount of time.
Types of training that can be assigned within a restaurant LMS include state-specific, accredited alcohol seller training, food handler training, food allergen training, food safety manager training, and much more.
Here, we list down the top 5 benefits that restaurant LMS solutions provide to establishments across the country.
- Trains Better Than Conventional Methods. Learning management software solutions are proven to be better training platforms than the traditional classroom. An article by Forbes highlights the fact that information retention rates with eLearning distributed through an LMS is anywhere from 25%-60%, while the information retention rate among traditional, face-to-face classroom training is between 8%-10%. With restaurants heavily dependent on the customers experience, and that experience dependent on a worker’s performance, it becomes increasingly important that restaurant employees retain the information they receive during their training. With a sophisticated LMS, restauranteurs can be assured their workers will not only take the training that’s required of them, but they also retain the information and practice it on their assigned customers.
- The Staff Is Up to Date with Every Change. An LMS is an excellent source of communication between the restaurant management team and their staff members. Workers can be automatically notified when new training is required of them, and their managers can track their progress without having to track them down in person. This is a direct contrast to restaurant life without an LMS, where managers have little to no visibility in a staff members progress towards completing different training courses. Workers are also kept in the dark when new training is made available, and have to rely on word of mouth to get the latest updates. The staff will always feel in the loop, and this will help garner loyalty in them.
- Control Over Consistency. Without a centralized LMS, restaurants rely on their employees to find, and usually pay for, their own training classes. For example, waiters would be required to research a food handlers course on their own time, and pay for the course on their own dime. This will lead to employees opting for the quickest, cheapest courses out there on the net, caring little for its quality or comprehensiveness. An LMS allows managers to choose a course they like, one that is accredited and thorough, and require that their employees take that course. This allows management to ensure that the training that their workers receive is of high quality, and will help develop a strong, trained, well rounded restaurant workforce.
- Maintain Your Budget. In this ever-changing world and ever-growing food industry, manuals represent an ancient method of training and education. Not only are manuals obsolete, but they are also cost ineffective. Pages upon pages of unnecessary details that usually don’t get the time of day. These books end up taking up space, collecting dust. They are hard on the wallet, and not to mention, they leave a damaging ecological footprint. A restaurant LMS can be a significant money saver. Rather than buying custom manuals for their workers, managers can simply provide electronic versions to employees as they come onboard. This not only eliminated the cost of printing, shipping, and storing the manuals, but it also makes life a lot easier for the new employee. The money saved in administering online training can be spent towards upgrading the restaurant, marketing, or hiring more staff.
- Reduced Turnover. On the topic of costs, one of the most significant costs associated with running a restaurant is the employees. Hiring, onboarding, and retaining workers is a constant money vacuum for owners around the country.
Fortunately, a restaurant LMS is a powerful tool for reducing the employee turnover rate. As per a study by Cornell University’s Center for Hospitality Research, turnover in the hospitality industry costs more than $5,800 per employee. While, the cost at each restaurant may vary, it’s clear that recruiting and loss of productivity are both expensive and time-consuming.
Fortunately, the simplicity, ease of use, and quality of the courses offered through an LMS can significantly increase restaurant retention rates. According to an article of the HR Exchange Network, “Training that seeks to improve employee investment and helps the employee identify with the organization will enhance the overall employee’s commitment to the company and, in turn, reduce an employee’s turnover intent.” Implementing solutions that take stress away from workers will likely earn their respect and their tenure.
A restaurant LMS provides countless benefits to owners, managers, and workers. For owners, LMS saves money. For managers, LMS improves visibility. For workers, LMS saves time and effort. When looking for a restaurant LMS that is right for your establishment, it is important to do the research and find a solution that works best for you and your team.