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

Restaurant Strategy Episode released on November 11, 2024, hosted by industry expert Chip Klose, delves deep into the prevalent issue of inadequate training in the restaurant industry and offers a structured, three-tiered approach to enhance employee development and retention.

1. The Training Crisis in the Restaurant Industry

Chip Klose opens the episode by highlighting a critical problem: the restaurant industry's struggle with effective training.

Chip Klose [00:01]: "We suck at training and we've sucked at training in this industry for a very long time. And that's a problem because most employees want to stay put. But they churn. We churn at roughly about a 76% rate industry-wide."

This high turnover rate not only disrupts operations but also incurs significant costs, estimated between $30,000 to $45,000 per employee to replace staff, as supported by various industry research studies.

2. Understanding the Impact of High Employee Turnover

The conversation underscores the financial and operational strains caused by such high churn rates. Chip emphasizes that the root cause lies in the initial interactions with new hires and the lack of structured support systems to set them up for success.

Chip Klose [00:47]: "The bottom line is it goes back to the way that we first greet new hires when they walk in the door and the way we set them up for success. We're really bad at it, but we don't have to be."

3. Introducing the Three-Tiered Training Approach

To address this issue, Chip proposes a comprehensive training framework divided into three levels:

• Level One: Rapid onboarding to get new employees operational within seven days.
• Level Two: Developing employees to match the proficiency of top performers by 90 days.
• Level Three: Ongoing development to retain employees for the long term, ideally a decade.

Chip Klose [06:00]: "Level one training says, how can we get a new person ready to take a station on their own by the end of seven days? Level two training says, how can we get that person to be as good as our best person by the end of 90 days?"

4. Enhancing Level One Training

Level One focuses on effectively welcoming and equipping new hires. Chip outlines actionable steps:

• Preparation: Create standardized new hire packets containing employee handbooks, service manuals, menu descriptions, and necessary paperwork.

  Chip Klose [09:03]: "You set pars on those things. I used to do this all the time, set pars for those things, just like you set pars in the kitchen."

• Welcoming: Personally greet new employees, provide them with their packets, and offer a comprehensive tour of the restaurant to make them feel valued.

• Assessment: Implement daily quizzes to ensure new hires have absorbed essential information, such as phone numbers, menu items, and key personnel.

  Chip Klose [10:15]: "You need to see their skills. You need to see that they have, that they've taken on, that they've internalized all the things that they've been taught."

5. Advancing to Level Two Training

Level Two emphasizes deeper knowledge and skill enhancement over the first 90 days. Chip shares his experience from a New York City restaurant group that excelled in this area by offering specialized classes:

• Structured Learning: Regular food, wine, and spirit classes to deepen employees' product knowledge.

  Chip Klose [12:30]: "There was a method to the madness. And I'm so much better off. I'm such a better salesperson."

• Continuous Improvement: Encouraging employees to engage in ongoing education to enhance their sales techniques and service quality.

6. Sustaining Growth with Level Three Training

Level Three is about long-term development and retention. Chip advises regular interactions to understand employees' evolving personal and professional goals:

• Regular Check-ins: Monthly or quarterly meetings with both managers and hourly staff to discuss career aspirations and provide growth opportunities.

  Chip Klose [15:45]: "Understand where they are and what they care about, and then make sure you're supporting them."

• Pathways for Advancement: Creating roles like wine directors or assistant sommeliers to cater to employees' interests and strengths, thereby fostering loyalty and reducing turnover.

  Chip Klose [16:18]: "They had the level one, level two and level three training dialed in."

7. Practical Implementation Tips

Chip offers practical advice for restaurant owners to implement this training framework:

• Standardization: Use manila folders and set pars for training materials to ensure consistency.
• Engagement: Actively involve employees in their training journey with quizzes and feedback sessions.
• Flexibility: Adapt the frequency and structure of Level Two classes to fit your restaurant’s unique needs.

Chip Klose [14:01]: "I'm sure you could do one class... Where there's a will, there's a way."

8. Real-World Success Stories

Sharing his personal journey, Chip recounts how effective training transformed his roles and passion within the industry, illustrating the tangible benefits of a well-structured training program.

Chip Klose [17:10]: "This allowed me to do the very sexy part of the job... It sparked creativity and curiosity in me."

9. Conclusion: A Call to Action for Better Training

Chip wraps up by urging restaurant owners to commit to enhancing their training programs. By adopting the three-tiered approach, restaurants can significantly reduce turnover, foster employee loyalty, and ultimately improve profitability.

Chip Klose [19:00]: "If we do this, we can make a better industry. We can hold on to more people. Ultimately, that's going to breed loyalty between our customers and the people who serve them."

Additionally, Chip offers a free copy of his book, Restaurant Marketing Mindset, to listeners, encouraging them to leverage his insights for further growth.

Key Takeaways

• High Turnover is Costly: With a 76% churn rate, improving training can save significant costs.
• Structured Training Enhances Retention: Implementing Level One, Two, and Three training can transform employee experience and loyalty.
• Continuous Development is Essential: Regular check-ins and opportunities for growth keep employees engaged and committed.
• Practical Steps Lead to Success: Standardized materials, active engagement, and flexible training schedules are crucial for effective training programs.
• Real-World Examples Validate the Approach: Success stories from industry leaders demonstrate the effectiveness of comprehensive training.

By addressing the training shortcomings in the restaurant industry with a strategic, layered approach, Chip Klose provides actionable solutions aimed at building more profitable and sustainable restaurant businesses.