Should I Stay or Should I Go? Why Are
Young Managers Leaving the Restaurant
Industry?
Rebecca Gordon
Student Research Paper
November 2014
Introduction
Anyone who has worked in the restaurant industry knows that employee turnover is high. For decades
now even people outside of the industry have had the perception that working in a restaurant is a shortterm option to make money. This belief is backed up by the average turnover rate being 33% for hourly
paid employees in Canada (Kiel, 2013). This restaurant turnover rate is in fact the highest rate out of all
industries in Canada. Why is it so high? One reason is because employees feel that there is no risk in
quitting a restaurant job because there will always be another restaurant that is hiring (Murphy, DiPietro
et al. 2009). Another reason could be because people do not want to work in the restaurant industry longterm because of its perception for unfavourable working conditions.
Many young managers who have spent years studying hospitality in post-secondary education end up
leaving the restaurant industry altogether after a few years of working in the industry. This is challenging
to the restaurant industry because it is losing knowledgeable leaders that have the potential to make a
difference to the restaurant industry. For that reason this paper was developed to explore why so many
recent hospitality graduates are leaving the restaurant industry. It is hoped that this paper will help the
industry to identify the problems and to make changes that will help retain employees and keep people in
the restaurant industry.
What We Know
Research conducted by hospitality professors David Pavesic and Robert Brymer from the United States
have shown that young managers leave the restaurant industry because of the stressful nature of the job,
unfavourable hours, low compensation and a generation gap between the young managers and the people
they report to. All of these reasons can decrease job satisfaction which in turn leads to an increase in
turnover intent (Kim and Jogaratnam 2010).
Stress and Burnout
Restaurant managers have a wide range of tasks that they are expected to accomplish and a lot of the
restaurant’s success is dependent on the manager. On a daily basis managers are challenged with
unexpected situations, meeting sales goals and reducing costs as well as having to lead staff. Trying to
generate sales and to continue to improve performance during hard economic times is another stressful
challenge that young managers have had to learn to cope with. Overall this is a large and time-consuming
workload that causes many managers a lot of stress. If stress is not handled appropriately, low
satisfaction, poor work performance and negative health effects could occur (Hayes 2007). In addition,
having to work long hours at work and having very little leisure time can easily cause job burnout.
Burnout causes employees to be dissatisfied with their jobs when they experience pressure and stress
(Kim and Jogaratnam 2010). Many people leave restaurant management and pursue a different career
that will provide them with a better work-life balance. For this reason, restaurant jobs have become a
young people business.
Compensation
According to North American research, salary is the most important determinant of restaurant employee
turnover (Kim and Jogaratnam 2010). Many managers believe that they are not getting paid enough for
the amount of work that they do (Pavesie 1990). Research conducted by the University of Guelph
Sustainable Restaurant Project has also shown that tips play a part. Restaurant managers can make less
money than servers because they do not receive tips (von Massow and McAdams, 2012). It seems unfair
for restaurant managers to have to take a pay cut from being a server in order to work longer hours and
have many more responsibilities as a manager. This is especially difficult to justify if an employee has
put the time, money and effort into getting a degree related to the restaurant industry and yet they could
be making the same amount of money as an entry level position. When an employee feels that they are
not being compensated fairly they are likely to decrease the amount of effort they put into their job or to
just quit it (Dipietro and Condly 2007).
Generation Gap
Most general managers are from the baby boomer generation while most young managers are from the
millennial generation. Each generation has different values and perceptions of the workforce and it can
be hard for both generations to see eye to eye. This tends to cause frustration and misunderstanding
between the two parties (State News Service, 2013). Research suggests that Baby Boomers respect
authority and hierarchy meanwhile Millenials tend to challenge authority and be more demanding
(Gursoy, Chi et al. 2013). When Baby Boomers were young managers they were loyal to the restaurant
they were working at and they were willing to wait their turn for promotions and rewards. For that reason
Baby Boomers expect Millenials to have to work their way up in the restaurant industry just like they did
when they were their age. Millenials however are not willing to wait and they believe that they deserve
immediate recognition through title, praise, promotion and pay (State News Service, 2013). Since
Millenials have different values and expectations than Baby Boomers it is easy for both groups to become
frustrated with each other and misunderstand what each group wants.
Many students who study hospitality before earning a manager position already know that with the job
comes stress, challenging hours and low compensation. For that reason it appeared that the current
research was not telling the full story. As a result, interviews were conducted with recent graduates from
the University of Guelph’s Hotel and Food Administration program.
Method
In order to get a better understanding of the industry from the perspective of young restaurant managers,
ten individual interviews were conducted with graduates of the Hotel and Food Administration program at
the University of Guelph. Everyone interviewed had graduated within 1 to 4 years previously. Of these
10 people interviewed, 7 were women and three were men. In addition, half of the people interviewed
had left restaurant management. When conducting the interviews each person was asked the same set of
10 open-ended questions. The questions asked were related to their experience as a restaurant manager
post-graduation and their opinion of the restaurant industry. As the answers from each interview were
compared and analyzed it appeared that there were some common issues that these young managers were
reporting.
Findings from Interviews
Intention and Passion for Restaurant Management
Everyone interviewed said that they love working in restaurants because they are able to meet people and
make connections with them through their dining experience. Most people chose to study hospitality in
school because they thought that they were a good fit for the restaurant industry because they love
interacting with people and they previously had great experiences working in restaurants. Working in a
restaurant was also seen as a favourable career choice because every day has different challenges and it is
unlike working a desk job.
Everyone interviewed mentioned how difficult and draining it is to try to always appear happy, genuine,
understanding and apologetic to customers. Repetitively dealing with guests’ complaints especially if it is
something the manager cannot control can be frustrating. In an environment where it has become normal
for customers to feel entitled to be able to make complaints and demands on their service, it has become
increasingly difficult for restaurant mangers to keep a positive attitude. Another thing that almost
everyone mentioned that they dislike about the restaurant industry is the tendency to have to work when
the rest of the working world has time off. This makes it difficult to keep friendships and relationships
with people who are not in the restaurant industry. In fact two people left restaurant management because
they were spending so much time at work that their relationships with their friends and family suffered.
They believed that it was not a healthy work-life balance and that they would prefer to step down from
restaurant management and try to mend their relationships.
Structure, Culture and Attitude at Restaurants
A common theme from every interview was that the structure and culture of the restaurant affects the
enjoyment and satisfaction of restaurant management. In addition, the attitude and the way the general
management gives feedback can make a huge difference.
Restaurant managers working for national restaurant chains seem to have more job satisfaction. This is
because these companies need to be more structured in order to have the same level of service at each
restaurant. These companies also have multiple managers hired and have well-established human
resource policies for the managers. This reduces the workload and stress of the job. In addition, chain
restaurants seem to be better at having set schedules so restaurant managers always have set days off and
tend to know their exact hours that they are working. This allows restaurant managers to have a better
work-life balance.
The experience at a privately owned restaurant can either be incredibly rewarding or very difficult. Most
small, privately owned restaurants only have one front of house manager. This gives that one manager an
enormous workload and amount of responsibility. This results in an increase in stress and the amount of
hours worked. One person interviewed mentioned that he practically worked every single hour the
restaurant was open because even if he was not at the restaurant he would constantly have people texting
or calling him with questions or he would feel the need to check in with the restaurant. He never had the
time to stop thinking about the restaurant he was working at. Having to work hours like this causes
burnout which explains why this manager does not work in a restaurant now. This is not the case for
every restaurant. One woman interviewed mentioned that the owner of the restaurant she works at makes
sure that she only works 40 hours a week and encourages her to take time off of work. It would appear
that each restaurant has a different approach as to their expectations and how they delegate the workload
to their managers.
Some managers are also deterred from working in restaurants because of how their general management
treats them. Seven out of ten people interviewed felt that they do not get enough recognition for the
amount and the quality of work that they do. Instead of general management letting their managers know
what they did a good job on they only focus on the negative aspects. This causes managers to feel like
they are bad at their job and that they should leave the industry and find a different job.
Long-Term Goals
Young managers are also taking into consideration their long-term goals. Some manager’s feel like their
work and personal goals cannot possibly be obtained in the restaurant industry.
Some young managers interviewed left the restaurant industry because they had lost hope that they would
ever get a promotion and become a general manager. Young managers do not want to have to wait ten
years to become the general manager. Some managers even feel like they have the same role and
responsibility as a general manager but they are not given the title so that they do not have to be paid
accordingly.
Young managers are also thinking about their personal life and whether their future personal goals would
be able to fit in with their career aspirations. Nine out of the ten people interviewed believe that it is not
possible to raise a family while working as a restaurant manager due to the hours of the job. It is very
difficult because the hours when family time traditionally takes place are the hours when managers are
most needed at the restaurant. What was surprising was that the men interviewed also shared this
opinion. As fathers they want to be present in their child’s life and they would be missing out on too
many important moments of their child’s life while they were at work. Another interesting thing that one
woman mentioned was that even if she was able to change her hours it would still be unrealistic to keep
her current job because it would cost more to put a child in day care in Toronto than her total salary. This
belief is what is causing so many managers to leave the restaurant industry and instead find jobs that are
better structured and accommodating. Most of the people interviewed also believed that this is why there
are fewer females in leadership positions at restaurants than males.
How do we deal with this?
Many recent graduates’ intentions are in the right place. They love working with people and enhancing
diner’s experiences. People like this should not be leaving the industry and the reason they are is just
because of how their job is structured and how they are treated. The one good thing about this is that it is
possible to make changes to stop this from happening.
Acknowledge Successes
First off, it is recommended that companies work on changing their attitude and how they motivate their
employees. As mentioned previously, Millenials value recognition and being awarded for their successes
(States News Service, 2013). Recognition will help let young managers know that they are doing things
well and they are less likely to get discouraged (Schumacher, 2012). When employees perceive that
management sincerely cares about their well-being and they are being treated as an asset, they experience
higher levels of job satisfaction and reduced turnover intent (Kim and Jogaratnam 2010). If restaurants
invested in their current managers, restaurants would actually save money through retaining their mangers
rather than having to spend additional money to hire and train a new manager every year.
A New Business Model
Secondly, restaurants should be more supportive of their employees having a better work-life balance. It
is unhealthy for employees to be working 60 hour work weeks which is the norm for most restaurant
managers. Some restaurants already see the value in this and they are doing a good job at scheduling and
encouraging managers to take time off. Studies have shown that if companies give their employees more
time off, it results in more productivity and decreases absenteeism and turnover (Kucukusta, Denizci
Guillet et al. 2014). In restaurant management it is necessary to work long hours and to have to work on
holidays and weekends. A good compromise for managers and restaurants would be to implement
different work schedules and programs such as compressed workweeks and sabbaticals.
Other industries have successfully implemented untraditional work schedules. For example, stressful and
time-consuming occupations such as policing and medicine have found compressed workweeks to be
helpful. Compressed work weeks are the type of schedules in which the work day is extended, but the
number of days worked is reduced (Amendola, Weisburd et al. 2011). Compressed work weeks are
favorable because they have been proven to increase job satisfaction and morale (Amendola, Weisburd et
al. 2011). There are many other companies in other industries that also encourage their employees to
take time off of work. For example, McKinsey, a global consulting company has a program called Take
Time. It is a program that employees can apply for which allows them to take 5-10 weeks per year off to
pursue personal interests and passions.
These flexible and unique schedules if implemented in the restaurant industry could change the quality of
life for its employees and it could also change many negative perceptions of the restaurant industry. With
a different type of schedule, employees could gain a better work-life balance because it gives them more
time to participate in leisure, personal and family time. In addition, it would be a better schedule to raise
a family because there would be a greater chance for synchronous leisure time (Brown, Bradley et al.
2011).
More Research
The goal of this paper was to investigate what is causing talented and passionate people to be leaving the
restaurant industry. It is recommended that further in-depth research be conducted to confirm the
conclusions from this paper. The next step is to survey a wide sample of recent graduates to confirm
these findings reported in this paper. If more information is gathered it will make all of the issues brought
up in the report more valid and apparent that the restaurant industry should change some of its practices.
Working in a restaurant is a challenging and exciting job that should be attracting many people rather than
having the highest turnover rate out of any industry. If the industry works on changing traditional
business models and attitudes, the perceptions of working in the restaurant industry will also change for
the better.
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