Optimize Hiring and Retention in Foodservice Using Cloud-Based HR Solutions

The hospitality industry faces an acute staffing shortage, with operators worldwide struggling to return to pre-pandemic employment levels.

According to the Labour shortages and surpluses in Europe 2023 report, published by EURES (European Employment Services) in 2024, 17 European countries are experiencing highly severe shortages of waiters, while 16 report shortages of cooks. In the US, the Bureau of Labor Statistics projects that the foodservice industry will experience its largest employment growth by 2031, yet staffing levels will still remain below pre-COVID figures.

The shortage of candidates combined with high employee turnover put operators in constant hiring mode, with increased costs in both time and money. Cloud-based HR management tools offer a solution by automating many manual steps, making the hiring process faster and more efficient. In this article, we’ll explore three specific areas where these tools are making a difference.

Hiring

The traditional recruitment workflow—collecting CVs, screening candidates, and calling them to schedule interviews—is often too inefficient for foodservice’s fast-paced environment, especially for operators managing multiple locations. The process often results in delays and inefficient back-and-forth communication between HR, hiring managers and candidates. It's particularly inefficient for younger digital native applicants under 25, who make up over 17% of the hospitality workforce (compared to 7.6% in the overall economy) and expect a digital-first agile hiring experience.

Here's how modern cloud-based recruiting apps can make the process more efficient:

• Screening applications. Instead of submitting CVs on job board websites, candidates fill out an application form with targeted questions. If they are at the restaurant, they scan a QR code linking to the restaurant’s website. Responses are automatically screened and organized for easier review by hiring managers.
• Engaging with applicants. After candidates apply, the system sends automatic SMS responses, while managers can send additional messages manually if needed.
• Setting up interviews: Instead of calling from unknown numbers, managers share interview scheduling links by text, allowing candidates to select convenient time slots directly from a calendar. This approach reduces no-shows and enhances the candidate experience.

For instance, Workstream is a hiring platform that automates much of the recruitment process. Using smart screening logic, it advances qualified applicants to the interview stage while blocking unqualified reapplicants. The platform sends candidates links to available calendar slots and automated reminders to minimize no-shows. Managers can customize workflows to adjust interview duration and format, and keep track of each candidate’s progress.

A Burger King franchisee using Workstream was able to simplify and streamline its hiring process. Previously, managers had to manually check applications, follow up, and arrange interviews. Now candidates can schedule interviews themselves, reducing back-and-forth. This automation has allowed managers to fill roles faster, improve the candidate experience, and engage more with new hires.

Shift scheduling

In foodservice, the shift schedule is the single most important element for a productive and positive workplace. Building it is a complex balancing act between business needs, employee preferences, and unexpected changes. It’s often a daunting task for managers, as it’s time-consuming and prone to errors, especially when using spreadsheets.

To create effective schedules, managers must consider for each shift:

• Employee availability: tracking minimum and maximum weekly hours, plus individual availability.
• Forecasted staffing needs: anticipating customer volume and workload.
• Legal compliance: adhering to regulations, such as maximum hours for minors.

The schedule also needs to be clear, have the right balance of staff experience, and be flexible enough for last-minute changes due to shift swaps or sick calls.

7shifts is an example of a cloud-based app that provides restaurant managers with a drag-and-drop shift builder. The updated schedule is published in real-time through a mobile app, where employees can view shifts, see who they’ll be working with, update their availability, request swaps, time off, or other changes.

Global bubble tea chain Chatime adopted 7shifts across its 75 Canadian locations to centralize scheduling data and improve sales forecasts. The results were more efficient schedules and team management, and lower labour costs.

One of the most challenging aspects of building the right schedule is forecasting customer volume for each shift. With too few staff, customer service suffers and employees face excessive workloads; too many, and costs rise unnecessarily. 7shifts, integrates with POS systems to forecast staffing needs based on historical sales data, while Fourth's AI-based tool also uses customer demand and other key factors. The tool also has a feedback loop that compares predicted outcomes with actual results to improve accuracy.

Lancaster Brewery, which uses Fourth’s Intelligent Scheduling to forecast demand and optimize labour deployment, has reduced labour costs despite wage increases and improved its sales/labour hour ratio.

Employee feedback

Organizations that actively ask for regular feedback from employees are three times more likely to meet or exceed their financial targets than those that don’t. Collecting feedback helps uncover issues, large and small, allowing managers to address them proactively. It also shows employees that their opinions and wellbeing matter, which strengthens engagement and retention.

Workstream, for example, automatically distributes various employee surveys to gather feedback, monitor employee sentiment, and gain insights from departing staff, while 7shifts has a messaging and feedback feature where employees and management can communicate through the app without using their personal phone number.

While the industry searches for structural solutions to staff shortages, cloud-based HR applications allow foodservice operators to hire and manage workers more efficiently. This, in turn, creates a better first impression on candidates and a more satisfying work experience for employees, increasing retention.