Third-party food delivery apps hurting small biz, plus no cook in the kitchen, and the secret to retention
Welcome to the Small Business Run Down. Each day, we bring you stories that impact small business owners and their workforce.
We’ve got food on the brain today so we’re focusing on the restaurant industry and how third-party apps are feeding on small establishments. Also: where are all the head chefs going? And if you didn’t know it already, now is a good time to learn how important it is to show employees you care. Good day!
Third-party delivery services take big bites out of mom-and-pop establishments
For small, mom-and-pop restaurants who earn a sizable portion of their revenue through take-out, third-party delivery apps can be a crucial way to expand their customer base. They can also take a sizable portion of their profits, however. Delivery app Grubhub is currently being investigated for charging restaurants excessive fees for phone call orders made through their app.
The Number: 30%. Third-party delivery services can charge restaurants anywhere between 15% and 30% of a customer’s order.
The Quote: “Many restaurant owners have said that the delivery services’ orders are cannibalizing their existing customer base.”
Study finds fewer (head) cooks in the kitchen
According to a review of Department of Labor statistics, hiring rates for chefs and head cooks has decreased for the second year in a row, even as the pay gap between these kitchen bosses and their underlings has continued to grow. Experts point to many causative factors behind the chef shortage, including restaurants economizing in the face of rising minimum wages, burnout and lack of comprehensive benefits packages within the industry.
The Number: 2.4 million. Despite a dip in the number of head chefs, the overall number of cooks in the country comes in at 2.4 million — an all-time high for the profession.
The Quote: “The emerging cannabis industry may also be poaching some chefs away from the restaurant space.”
Want to boost retention? Try a four-letter word that starts with “C”
The key to boosting employee retention might not be found in cold, hard cash (though it certainly can’t hurt!). A new study found that simply showing employees that you care can be a powerful way to keep them sticking around. In fact, having a company culture of organizational support for employees can even make up for not having fancy benefits perks like pet insurance.
The Number: 60%. According to The Science of Care Report, 60% of workers who believe their employer cares about them plan to stay with the company for 3+ years.
Quote: “Care is about those day-to-day human interactions. It’s about being flexible and understanding when an employee needs to leave work early to pick up a sick child or fostering positive manager-employee interactions over a cup of coffee.”