4 P a g e 3 Though minimum wage is higher but due to low morale and social

4 p a g e 3 though minimum wage is higher but due to

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3. Though minimum wage is higher but due to low morale and social status fast food positions turn over four times a year on average. Higher turnover negatively impact the reputation and productivity of the organization. 4. Today’s restaurant owners must take an active role in searching for and training new talent. In this industry organizations have to provide versatile training ranging from customer services to hygiene and so on. So training cost is so high in this industry. 5. Technology has changed how customers order, pay, and are served. The use of mobile apps and self-order kiosks offer customers ease of ordering. So, restaurant chains are increasingly adopting these options to drive sales growth. Many restaurants use social media solely to advertise a new offer or menu item but you can’t just do the bare minimum if you intend to compete with the giants of your industry. Analysts foresee creative uses for Google Glass, such as glass-wearing servers using face recognition technology to quickly locate patrons in crowded bars. Data from Apple Pay and other electronic wallet solutions will also make it easier to personalize customer experience. 6. Restaurants that specialize in variety of cuisine likely have the more demand than the traditional restaurants. Inclination towards global cuisines — Increase in preferences for global/ethnic cuisines is prompting restaurants to diversify their businesses. — According to a survey by the NRA, 80 percent of consumers eat at least one ethnic cuisine per month. So now organizations are tending to hire diversified employees. Workforce diversity is one of the important strategies to gain the competitive advantages in the industry. 7. Home deliveries and takeout services have seen rapid growth in recent years. Delivery sales for the majority of restaurant operators across segments have risen since 2017. As a 5 | P a g e
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result, more operators are offering delivery options to capture this growth trend. As an example, McDonald’s ( MCD ) is expanding the number of outlets that offer food delivery. 8. For large players with international operations, the franchise model works best. Typically, the company owns the premises or secures a long-term lease for the location. The franchisee invests in the equipment, furniture, and fixtures. As an example, franchisees operate 93% of McDonald’s restaurants. Now organizations follow the geocentric or regiocentric approach of international HRM. 9. Preferences for healthier food options — Consumers prefer to eat at home and, if dining out, are inclined to consume healthier and less processed foods. — Restaurants have been making attempts to influence consumption patterns by deploying attractive pricing 10. Environment sustainability — Restaurants have been focusing on reducing food waste to manage rising costs and to “go green”. — Rising awareness of sustainability, especially among millennials, is forcing restaurants to implement environment 11. Focus on Generation Z
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  • Spring '12
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