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Multi Unit Restaurant Franchises: Labor Shortages

MUF

Summary:

Restaurant groups and multi-unit franchisees are facing ongoing challenges with labor shortages, with over 80% of operators still reporting a lack of workers. To address this, some are turning to the EB-3 Green Card for hiring unskilled and low-skilled foreign workers. The average turnover rate for restaurant employees is over 20%, with onboarding and training costs exceeding $3k, impacting multi-unit franchisees who have to hire for multiple locations.

Listen the article:

Restaurant Groups and multi unit restaurant franchisees are facing difficult challenges with the well documented labor shortage. 

Gone are the days where restaurant owners and franchisees were viewing this issue as a short-term issue that they needed to survive. 

The labor shortage, particularly in the restaurant industry, is omnipresent and a plethora of micro and macro trends demonstrate that this issue will need to be addressed for decades to come. 

Now two years removed from the onset of the pandemic, still over 80% of restaurant operators cite they are short at least one worker.

A solution that more and more owners are turning to is the EB-3 Green Card for foreign national unskilled and low skilled workers.

Hiring challenges for Multi Unit Restaurant Franchises

The average turnover rate for restaurant employees is over 20% and is even higher for family owned restaurants according to Touch Bistro’s 2022 State of Restaurants report. 

The report also highlighted that onboarding and training for a new employee costs over $3k. These costs can be particularly impactful on multi unit restaurant franchisees who have to hire for multiple establishments. 

More and more, restaurants and businesses in all industries are viewing their employees as an investment similar to any other resource they need to turn a profit. 

If you as a multi unit restaurant franchisee have open roles, you need to be extremely conscientious of the costs you will incur and how long it will take to reap a return on that worker.

The Solution: EB-3 Visa Workers

It’s time to quit hiring in an ad hoc and sporadic way because it is time consuming and only a patch fix. 

Given the high turnover rates associated with the restaurant industry, you also must do everything in your power to find reliable candidates that will stay in their position long enough for you to benefit from the costs associated with their hiring process. 

Business owners are turning toward EB-3 visa workers more and more to fill their open roles and they are reaping the rewards.

EB-3 visa workers generally stay with their employer twice as long as domestic workers due to complications with their US status if they are not employed.

In the past, business owners would tend to shy away from hiring foreign workers as the paperwork, legalities, nuances, etc., can seem very daunting.

Fortunately, our team has decades of experience executing this process and will make it as low-lift as possible on your end. Especially if you are a multi unit restaurant franchisee it is important to start considering EB3 visa workers as it will be financially and emotionally exhausting to continue hiring with no process.

Fill out our form to learn more about how we can help and learn about past success stories with our clients.

Bad Customer Experiences Induced by Labor Shortage Issues

Being short staffed not only limits your businesses productivity, but it also impacts your ability to facilitate an enjoyable experience for your customers. 

Short staffing issues manifests itself in the form of longer wait times for tables, slower service, and inattentive staff. 

Being understaffed can also mean needing to raise prices in order to make up for the revenue you are missing out on by not being able to serve as many people as you could with a full staff. 

These factors often lead to customers having a negative experience and can cause them to never return. 

The restaurant industry is very competitive and if you are not able to provide an optimal experience for your customers, they will go somewhere that will.

The micro and macro economic trends indicate the current job market issues are here to stay. Don’t wait until it’s too late to start thinking about a long-term solution for your restaurant staffing needs.

What are you waiting for? If you are a multi unit restaurant franchisee or restaurant group owner, it is time to start considering EB-3 Visa workers as a long term solution to the labor shortage issue.

EB-3 Benefits

  • Efficient hiring process
  • Longer retention of employees
  • Less stress on the business owner
  • EB-3 workers are qualified for these positions making them reliable employees that can boost the productivity of your organization.

Positions that EB-3 workers can fill

  • Waiter / Waitress
  • Cook
  • Host / Hostess
  • Cleaning
  • General Laborer

EB-3 Timeline and Process

There are three main components to the EB-3 Green Card process. With the help of an experienced team, it can be very straight forward. All in all the entire hiring process takes between 12-18 months which is why it is important to reach out today.

PERM Labor Certification:

The PERM labor certification is the first step in the EB-three process. The restaurant will need to prove that there are not any able and willing US workers to fill the roles they are looking to fill with foreign national candidates.

I-140 Immigration Petition:

The I-140 immigration petition is filed next. This petition establishes that the restaurant has the ability to pay the salary of the foreign national worker they are looking to hire.

I-485 Adjustment of Status or Consular Processing:

After the I-140 immigration petition is approved, the foreign national worker can either adjust their status if they are already in the US or apply for a Green Card through consular processing if they are outside

FAQs

How long does everything take?

Generally speaking the entire process takes roughly 18 months.

What are some of the risks?

If not done correctly, there can be significant delays or even a denial of the petition. Rely on our team to ensure every step is executed seamlessly.

Are EB-3 Visa workers able to bring their families?

Yes, once the EB-3 workers are able to bring their spouse and children (under 21).

If you have any other questions or would like to learn more about how we can help you with your restaurant’s staffing needs, please reach out. We would be happy to chat!

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