How Restaurants Can Support Employees Through a Possible Recession
More in this Series
- Empowering the Restaurant and QSR Industry to Rise Above Current Challenges
- How Restaurants and QSRs Can Motivate Their Employees to Return to Work and Improve Diners’ Experiences
- Restaurants and QSRs Can Attract More Customers With New Technology
- How Restaurants and QSRs May Help Employees During Supply Chain Disruptions
As talks of a potential recession increase, restaurants and quick service restaurants (QSRs) can work to improve benefits to support employees through potential financial hardships.
According to a March 2022 survey, 81% of adults are worried about a recession at some point in 2022.1 However, this recession may not be as bad as previous recessions. Some experts predict a potential recession will be more like a ‘correction’ after a year of outsized spending throughout the economy.2
Improve Employee Benefits with On-Demand Pay
While nothing can truly recession-proof your business, restaurants and QSRs should consider focusing on their employees.
An on-demand pay benefit may potentially improve financial well-being for employees and give them more control over their finances.3
Regardless of the potential recession impacts, nearly half of restaurant operators cited recruitment and retention as top challenges for 2022.4 To address this issue, 74% of restaurant operators plan to devote more resources to recruiting and retention.5
Part of this effort may include an investment in more flexible working conditions and better benefits. These additions may make employees feel more supported through the uncertainties of a possible recession and improve morale, which, in turn, may lead to better service and a positive customer experience.6
An investment in on-demand pay may prove valuable for restaurants and QSRs. According to a Mercator Advisory Group report in association with DailyPay, on-demand pay may decrease turnover by up to 73%.7
According to a March 2020 DailyPay survey8, additional potential benefits of on-demand pay include:
- 74% said DailyPay helped reduce their financial stress
- 59% said DailyPay motivates them to go to work
- 56% said DailyPay motivates them to pick up more shifts or work longer hours
Learn about the possible benefits of on-demand pay for restaurants and QSRs.
In addition to adding on-demand pay, the industry may consider improving wages, workplace conditions, professional standards, and benefits packages to help keep employees happy.9
With a happier staff, restaurants and QSRs may also see an improvement in overall customer service, potentially leading to higher profits.10
To learn about the benefits of on-demand pay for restaurants and QSRs, schedule a demo today.
This post is part of a larger series, so check back soon for more insights into Restaurants and QSRs.
1 https://www.cnbc.com/2022/04/05/most-americans-are-worried-about-a-recession-hitting-the-us-in-2022.html:DailyPay, 2020
2 https://www.businessinsider.com/next-recession-outlook-mild-inflation-cooldown-federal-reserve-economic-recovery-2022-5:DailyPay, 2020
3 https://www.toolbox.com/hr/employee-wellness/guest-article/on-demand-pay-an-employee-wellness-tool-growing-in-popularity/:DailyPay, 2020
4 https://www.foodbusinessnews.net/articles/20583-finding-workers-ranks-as-top-foodservice-challenge:DailyPay, 2020
5 https://www.foodbusinessnews.net/articles/20583-finding-workers-ranks-as-top-foodservice-challenge:DailyPay, 2020
6 https://hbr.org/2019/08/the-key-to-happy-customers-happy-employees:DailyPay, 2020
7 https://www.dailypay.com/mercator-report-2021/:DailyPay, 2020
8 https://www.dailypay.com/insights/our-survey-says-dailypay-saves-employees/:DailyPay, 2020
9 https://equitablegrowth.org/more-resilient-small-u-s-restaurants-and-their-workers-can-exit-the-coronavirus-recession-and-sustain-an-equitable-economic-recovery/:DailyPay, 2020
10 https://www.dailypay.com/resource-center/ebooks/cfos-guide-on-demand-pay-5-top-tips/:DailyPay, 2020
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