Staffing

Perks package, international employee sponsorship: 2 ways brands are meeting labor shortfall

A sign from a Mac's Hospitality Group store advising customers of some of the fallout of the current industry labor shortage. (Provided)

May 12, 2021

Worker-lacking restaurant brands across the nation are innovating approaches to attracting what has become the elusive restaurant employee to their stores. As this site explored earlier this week, the restaurant labor shortage is in full swing, despite the fact that there's no real consensus on the main cause behind the issue.

But at restaurant companies like Mac's Hospitality Group (operating Mac's Speed Shop, SouthBound, The Music Yard, The Studio and Backstage Lounge) and Russo's New York Pizzeria & Italian Kitchen, leaders are innovating new approaches to draw workers in, and accelerating programs in place that have proven effective in achieving that same goal, according to separate news releases.

At North Carolina-based Mac's Hospitality Group, all the companies brands just initiated an Employee Incentive Program that the company said is brimming with employee perks that impact core, long-term employees and new hires with benefits like:

• Paycheck bonus: All hourly employees get a one-time bonus in their next check, based on tenure.
• Referral bonus: Any employee who refers a kitchen candidate gets a $250 bonus, if that individual is hired.
• Profit-sharing every four weeks: For hourly employees, if the store qualifies.
• Health insurance perk: Anyone who works 25 hours a week now qualifies for health insurance, with benefits available after 60 days for all employees and managers.
• Hiring bonus: For all new managers.
• $1,000 bonus for new kitchen hires who stay until Sept. 1 (in select markets).
• Free daily meals for employees.

"We are totally committed to offering the absolute best places to eat, meet and work in a time when people are more than ready to rebound from the pandemic," Shang Skipper, president of Mac's Hospitality Group, said in the release. "Along with new menu items, robust carry-out options, and exceptional entertainment and social spaces, we are eager to demonstrate in a meaningful way just how much we value and care about those who are part of our team and entrust their livelihoods to us. Our people really do mean everything."

Meantime, at Russo's New York Pizzeria & Italian Kitchen, Founder and CEO Anthony Russo said the brand has also been tested by the shortage of willing and able workers. That's why he has turned to recruiting the company's international employees for U.S.-based jobs.

Russo's CEO Anthony Russo with some of his menu items. (Provided)

In fact, according to an email from the company, Russo's locations had more than 100 jobs open systemwide, but even after personally responding to 200 applicants for open positions, on two candidates ended up responding back. That prompted Russo to sponsor two employees from Dubai in the United Arab Emirates to come and work in the U.S. since they are already familiar with the restaurants operating protocols from their work at international stores.

Additionally, a brand spokeswoman explained that Russo's has also reduced the size of some of its stores, to also reduce labor costs and deployed various forms of technology to handle some tasks previously designated to employees.

"We have no choice but to adapt to the new change," Russo said in the email.

Russo's New York Pizzeria & Italian Kitchen has over 50 corporate and franchised locations in Texas, Oklahoma, Florida, Saudi Arabia and the United Arab Emirates. The chain expanded rapidly during the 2020 – in the middle of the pandemic – and is planning 10 new franchise openings by the end of 2021.

The adaptations at both Russo's and Mac's are emblematic of how brands are addressing the issue nationally, a topic which this website will further explore in the second half of its series on restaurant labor shortfalls publishing May 18.