How do you pay, reward, and retain your frontline employees?

Having a strong team of frontline employees is essential for any restaurant operation. They are the first people to interact with the customers, and their quality of service and hospitality can leave a lasting impression of the brand.

There is considerable turnover in the restaurant industry, which poses an additional challenge to retaining the best employees. Franchise Update asked several multi-unit franchisees how they pay, reward, and retain their frontline employees. Although they responded in several different ways, they all recognized the importance of these team members to their operations.

The surest way to keep top employees is through compensation and offering competitive wages. However, retaining employees and keeping them happy often goes beyond pay. The restaurant franchisees say it includes providing opportunities for growth and advancement, as well as incentives, bonuses, and rewards.

Another challenge for restaurant owners is having the financial resources to take care of their employees. In this week’s Franchisee Bytes section, we asked other multi-unit franchisees how they are handling rising employee costs, which include things like payroll, incentives, and healthcare. Several said they try to better manage staff hours and increase efficiency. Others felt they had to factor these increased expenses into their business model in order to retain the best employees. See the responses below to see how they are responding to rising employee costs.

Greg Costley

Company: Costley Enterprises Inc.
Brands: 14 Cicis Pizza
Years in Franchising: 28

Retention starts with respect, trust, and consistency. I’m fortunate to have many team members who have been with me for 30 years or more, and that doesn’t happen by accident. We operate as a team, and when a manager succeeds, the entire store succeeds. That mindset creates shared accountability and shared wins.

We’ve also made intentional investments in benefits and recognition. We recently introduced a PTO program that rewards long-term tenure with increased vacation time, and we’re in the process of rolling that out more broadly so every employee feels seen and valued. Beyond compensation, it’s about support, making sure our people know they’re not alone and that leadership is actively working alongside them to help them succeed.

Raj Patel

Company: The Hari Group
Brands: 101 Dunkin’, 22 Dave’s Hot Chicken, 6 McAlister’s Deli, 2 Tide Dry Cleaners, 1 Currito
Years in Franchising: 16

Our frontline team members are the face of our restaurants, so taking care of them is a top priority. We pay wages well above market to ensure team members feel valued from day one. Just as important, we focus on making sure they feel comfortable and confident in their roles. Investing in proper training systems and not rushing employees upfront goes a long way in improving morale across the board.

Stephen Anderson

Brands: 6 Ziggi’s Coffee
Years in Franchising: 10

We offer competitive pay and clear opportunities for growth, but culture is our strongest retention tool. We prioritize creating a positive, supportive environment where people enjoy coming to work and feel proud of the experience they deliver. When team members feel valued and connected, that energy naturally carries over to the guest experience.

Kelly Dunn Hart

Company: PB New Jersey LLC
Brands: 3 Wendy’s. Previous operating experience with Tijuana Flats, Wahlburgers, Guy Fiery's All American Restaurants, Honest John’s. Signed a new franchise agreement for 15 Potbelly shops.
Years in Franchising: 23

Frontline employees are the face of the brand to our guests. They take all the work done from the top of the brand down to delivering quality food and warm hospitality to our guests. They have the ability to build check and drive return visits; therefore, it is important to recognize and reward them. We do so through things like contests and bonuses that operate around achievable metrics. In this day and age, there are many things our teams value as a part of a brand. Swag and experiences are valuable incentives we provide aside from a monetary bonus.

Franchisee Bytes

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)?

Making the job more efficient and enjoyable through tech and streamlining. Any software that simplifies tedious tasks, such as inventory or scheduling, helps. That includes simple things, like automated safes to reduce the time and accuracy of counting cash. Installing automated equipment, such as beverage dispensers, allows employees to have a simplified experience while helping keep costs down.
-Chris Aslam, CEO & Principal, 59 Jack in the Box, 5 Golden Chick, 5 Hawaiian Bros Island Grill

We try to proactively plan and manage this increasing expense. It is part of our business modeling, and we understand that these expenses will continue to increase. We adjust pricing where needed and try to manage hourly wages appropriately.
-Nick Crouch, Co-CEO, Dyne Hospitality Group, 118 Tropical Smoothie Cafe

We’re managing increasing employee expenses with strategic scheduling, operational effectiveness, and performance-based incentives. Due to our mobile model, our overhead costs are lower than those of our brick-and-mortar competitors, enabling us to pay competitive wages and still achieve healthy profit margins. We also train our employees in crossover skills to make our team more flexible and productive, and fill each shift to capacity. We are also using data to predict high-demand locations so that we can optimize labor hours based on selling opportunities. This strategy manages expenses while engaging our staff and motivating them.
-Yunus Shahul, Franchise Owner, Smartfoods Group, 24 Cousins Maine Lobster, 1 German Doner Kebab

We are pushing digital and third-party sales as well as installing kiosks in our stores to reduce the number of staff per shift.
-Jerome Johnson, Multi-Unit Franchisee, John Cove Management and Jbar Inc., 4 Sonic Drive-In, 10 Dunkin', 4 Baskin-Robbins, 1 Jersey Mike's Subs

I absorb the rising employee costs because investing in people is nonnegotiable. We offer healthcare, PTO, and a retirement program. We want to have all the things in place to attract the best people.
-David Weeks, CEO, The Bean Team, 9 Barberitos, 8 Dunkin’, 4 Newk’s Eatery, 1 Dunkin’/Newk’s co-brand

Rising costs need to be managed carefully, using a combination of price increases and technology to increase efficiency.
-Sam Chand, CEO, Jasam Enterprises, 25 Checkers & Rally’s, 35 KFC