Essay about Reducing Turnover in The Restaurant Business

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The Bubba Gump Shrimp Company, a national chain of franchised seafood restaurants, prides itself on great customer service and affordable high-quality food, and knows that to meet their goals, they need a culture that attracts and retains the best employees (Bubba Gump Shrimp Company, 2011). In an industry notorious for high employee turnover and low job satisfaction (Prewitt, 2000), the Bubba Gump Shrimp Company reduced “management turnover from 36% to 16% in 2 years” (Aamodt, 2010, p. 397). What intervention opportunities exist for restaurant operators to reduce turnover of both managers and restaurant staff and more importantly, what resulting performance improvements can operators expect? While openly competitive pay and benefits …show more content…
In addition, in their study, Kacmar, Andrews, Van Rooy, Steilberg, and Cerrone (2006) found that management turnover was positively and significantly related to crew turnover, and that crew turnover was negatively related to unit efficiency. The study was able to “illustrate that turnover does indeed impact unit-level performance in terms of both sales and profit” (Kacmar, et al., 2006, p. 141). While the Bubba Gump Shrimp Company case study does not specifically describe the positive impact of improved management retention on business performance, it is reasonable to assume that both staff retention and restaurant performance were positively impacted. Accordingly, faced with 36% management turnover, the need to intervene is clear, but how? In order to determine appropriate interventions to reduce management turnover, an understanding of the underlying causes is required, in addition to an understanding of theoretical perspectives that relate to job satisfaction and organizational commitment. While the case study does not specifically describe the causes of turnover at Bubba Gump Shrimp Company, we can infer the possible causes. Employees typically leave their jobs for one of five reasons: unavoidable reasons, advancement, unmet needs, escape, and unmet expectations” (Aamodt, 2010, p. 394). Specific to the foodservice industry, poor
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