Podcast Summary: RESTAURANT STRATEGY

Episode: "We Suck at Training, But This is How to Do It Better (ENCORE)"

Host: Chip Klose

Date: November 24, 2025

Main Theme & Purpose

This episode centers on the persistent issue of poor employee training within the restaurant industry. Host Chip Klose unpacks why high staff turnover is so prevalent, how costly it is, and provides a practical, actionable three-level framework for radically improving staff training. The ultimate goal: help restaurant operators develop a more consistent, empowered team, increase retention, and set their business on the path toward sustainable, 20% profit margins.

Key Discussion Points & Insights

The Plague of Poor Training and High Turnover

• Industry Turnover Rates:
  • 76% annual staff churn is the norm.
  • Cost to replace an employee: $30,000–$45,000 per person.
• Root Cause:
  • High turnover is largely attributed to neglectful onboarding and inadequate training.
  • "We suck at training in this industry. We have sucked for a long time." — Chip (09:20)
  • Most restaurants only do “level one” training, which is insufficient.

Three-Tiered Approach to Training

1. Level One: Onboarding & Initial Competency (First 7 Days)

• Goal: Get new hires able to independently operate a station within a week.
• Best Practices:
  • New Hire Packet:
    • Prepare a manila folder, including handbook, service manual, menu descriptions, floor plan, philosophy, and onboarding paperwork.
    • “Set pars for those things, just like you set pars in the kitchen.” — Chip (14:04)
  • Greeting:
    • Personally greet new hires; show preparedness and value.
  • First Shift:
    • Tour the premises.
    • Set expectations for day one and who will train them.
  • Daily Quizzes & Feedback:
    • At the end of each training shift, administer a short quiz covering practical info (menu items, table numbers, team names, etc.).
      • “Eight questions, ten questions...for back of house and front of house. And then you should sit down with them, take the temperature of the water.” — Chip (17:40)
    • Follow up with a candid discussion: What confused you? What was good/bad?
    • Early detection of issues avoids wasted investment in the wrong hires.

2. Level Two: Continuous Skill Development (First 90 Days)

• Goal: New staff reach the competency of your "best person" within three months.
• Extended Learning:
  • Cites his early experience at a massive NYC restaurant:
    • “For the first 12 weeks, they basically took 12 food classes every Monday, 12 wine classes every Wednesday, 12 spirit classes every Friday.” — Chip (21:12)
    • Grueling, but cultivated greater competence, salesmanship, and passion.
• Practical Tips:
  • Not every program needs three classes a week, but build a regular learning cadence (e.g., weekly or bi-weekly classes).
  • Use punch cards, cycle through class topics to ensure everyone completes the curriculum, regardless of start date.
    • “Where there’s a will, there’s a way... There’s probably things you can teach them that will help them be better salespeople, better at their job, and better for you.” — Chip (23:04)

3. Level Three: Ongoing Development & Career Pathing (Ongoing, Quarterly/Monthly)

• Goal: Keep staff engaged for years by aligning work with their evolving personal goals.
• Regular Check-Ins:
  • Monthly for managers, at least quarterly for line staff.
  • “Our professional lives exist to serve our personal lives...so understand where [your people] are and what they care about.” — Chip (26:45)
• Case Study:
  • Example from Chip’s early NYC workplace:
    • Staff with wine interest were given extra opportunities to work as assistant wine directors on slower nights.
    • They gained valuable experience (including inventory and ordering), and the business benefitted from increased wine sales.
      • “Just somebody speaking passionately, intelligently about wine sold more wine. It was a win-win.” — Chip (28:29)
    • Allowed exploration of new roles before committing long-term; those who fit were promoted, those who didn’t found out quickly.
• Big Takeaway:
  • Find out what your team wants. Create small, low-risk opportunities for them to try new roles.
  • “If we do this, we can make a better industry. We can hold on to more people.” — Chip (34:38)

Notable Quotes & Memorable Moments

• On the state of training:
  • “We suck at training and we've sucked at training in this industry for a very long time.” — Chip (00:01)
• On the real cost of turnover:
  • “It costs us anywhere between $30–45,000 per employee to replace that employee.” — Chip (01:05)
• On onboarding:
  • “You literally will wait at the podium or set at a chair at the bar. And you wait for them to walk in and you greet them.” — Chip (15:25)
• On daily quizzes:
  • “Not as a pop quiz, not as a gotcha. You're gonna tell them: ‘Hey, these are the things I need you to learn by the end of the shift. We're gonna give you a quiz at the end to make sure you've internalized those things.’” — Chip (16:32)
• On extended training:
  • “It drove me crazy. It was just—it felt like such a waste of time. But at the end of it...I understand. There was a method to the madness. And I’m so much better off.” — Chip (22:16)
• On staff development:
  • “Our professional life is in service of our personal life...and you have to keep tabs, keep your finger on the pulse of where your people are.” — Chip (26:50)
• On next steps for owners:
  • “I started off by saying we suck at training. And I'll finish by saying we don't have to suck at training.” — Chip (34:20)

Timestamps for Key Segments

• 00:01: Opening thoughts on poor industry training
• 09:10: Introduction to three-tiered approach
• 14:04: How to create and use New Hire Packets
• 15:25: The importance of a genuine welcome
• 17:40: Daily quizzes and review
• 21:12: Story—rigorous onboarding in a 400-seat NYC restaurant
• 23:04: How to adapt extended training to your operation
• 26:45: Why and how to conduct regular employee check-ins
• 28:29: Wine director opportunity story
• 34:20: Final challenge to raise training standards

Summary & Action Steps

Chip Klose delivers a clear message: Most restaurants underinvest in training, directly fueling the high cost and chaos of staff turnover. By embracing a three-tiered training model—focusing on effective onboarding, ongoing education, and individualized development—operators can boost retention, morale, and ultimately, their bottom line. Simple, consistent attention to staff growth at every stage is key to building a resilient, profitable restaurant.

Challenge for listeners:
Review your current training. Add or improve level two and three initiatives. Be intentional, not just with onboarding, but with regular education and professional growth. “If we do this, we make a better industry.”