Hospitality L&D 360 Report: Part 2

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Hospitality Training 360 Report

Part 2: Training Benchmarks in Restaurants & Hospitality

Sponsored by

Introduction

Benchmark data reflects renewed enthusiasm for L&D in hospitality, but opportunities to improve persist In Part 1 of our Hospitality Training 360 Report, we shared data around sentiment and trends in learning and development (L&D) in the hospitality industry. Our survey of 100+ L&D leaders in hospitality businesses — primarily restaurants — revealed a field that was both benefitting from a post-pandemic influx in investment and feeling increasing pressure to deliver ROI. The second part of our report — which offers visibility into hospitality businesses’ real training budgets, hours, and priorities — largely reinforces these findings. Training hours have increased significantly in the last five years among both new hires and existing employees, especially for manager roles. And while onboarding remains critical, ongoing training is increasingly in the limelight. That said, it may still be underutilized. The following report contains data on all of the above, along with breakdowns among roles and business types to help readers more accurately benchmark against their own businesses. While reading through it, however, keep in mind that this data is not meant to be prescriptive. What works for one business doesn’t always work for another — and ultimately, the measure of a great training program is how well-tailored it is to its unique learners.

We hope this information can serve as a useful reference as you progress in L&D.

Your partners in training, CHART and Opus

Hospitality Training 360 Report - Part 2

1. Training budgets top $1,000 across all roles Businesses allocate between $1,200 (hourly roles) - $6,000 (general managers).

Key Findings

2. 3.

New hire role training sees significant increases Onboarding hours have increased by about 40% across roles post-pandemic. The training between QSR and Full-service restaurants differs by 50% (see Deep Dive). Upsurge in ongoing training reflects a need for adaptation Time spent training tenured staff has increased at a faster clip than it has for new hires — between 125% and 242%, depending on role — signaling the shift toward continuous learning. QSRs lead the way in ongoing training Full-service restaurants spend less than QSRs in ongoing training— revealing an opportunity to improve skills and knowledge retention among their workers.

4.

5. Investing in ongoing training can lower costs Although full-service restaurants may not be able to decrease their training costs to those of QSRs, employing ongoing training may help them get closer.

Hospitality Training 360 Report - Part 2

New hire training costs top $1,000 across all roles Budgets for new hire training seem to reflect the L&D investment increases reported in Part 1 of our report. Businesses spend roughly the same amount on training for front-of-house (FOH) and back-of-house (BOH) employees: $1,242 and $1,229, respectively. Assuming an average salary of $15 per hour, that’s equivalent to 80 hours or 10 eight-hour shifts. At the manager level, however, budgets increase significantly: $4,918 for unit-level managers and $6,241 for general managers. This is consistent with our findings in Part 1 of the Hospitality Training 360 report. While respondents reported that they expected investments in hourly training to decrease in the next year, they expected investments in manager training would increase. A full 28% expected a significant increase in manager training spend, leading us to declare 2024 the “Year of the frontline manager.” Later on, we’ll break down the differences in training investments between quick-service restaurants (QSRs) and full-service restaurants.

Average training cost per employee

Avg. Cost

FOH hourly employees

$1,242

BOH hourly employees

$1,229

Unit-level managers

$4,918

Unit-level trainers

$1,071

General managers

$6,241

# of Businesses: 30

What respondents said: “The workforce is coming in with little knowledge, ability, or skill in social settings. We need to teach the absolute basics like smiling, conversation skills, and looking up from handhelds.”

Source: Hospitality Training 360 Report, Part 1

Hospitality Training 360 Report - Part 2

New hire role training sees significant increases In Part 1 of our Hospitality 360 report, we identified several different factors behind the post-pandemic wave of enthusiasm for L&D in hospitality. Chief among them were an influx of younger, less experienced workers; heightened pressure to retain existing employees; and an executive desire to become employers of choice. Given this confluence of circumstances, it stands to reason that new hire training hours have significantly increased for all roles. Compared to 2019 — the last time a CHART survey was sent out — new hire training hours in 2024 have increased across the board, between 14% and 63%. There were healthy increases among both FOH (+57%) and BOH (+45%) hourly workers. The highest growth, though, was again among unit-level managers (+63%), who now spend an average of 196 hours — nearly five weeks — training in their new role.

Average number of training hours per employee on new hire role training

2019 2024 %difference

FOH hourly employees

22.3 35

57%

BOH hourly employees

25.6 37

45%

Unit-level managers

120

196 63%

Unit-level trainers

57

General managers

210.45 239 14%

# of Businesses: 55

Note: Figures from 2019 come from CHART’s 2019 Trends in Hospitality Training and Development Study. The study did not measure the average number of new-hire training hours for unit-level trainers.

💡 Pro tip: The earlier employees pitch in, the sooner they feel like part of the team. While new hires won’t be fully ramped up by day one, they can pitch in on simple tasks like cashier work.

Hospitality Training 360 Report - Part 2

Deep Dive

QSR & full-service new hire training break down QSR’s simpler operations mean their employees undergo less training than those at full-service restaurants. So, we’ve provided a breakdown between the two to offer more relevant benchmarking data. QSRs surveyed spent 25 hours on new hire training for both FOH and BOH employees — a decrease of 32% (FOH) and 34% (BOH) from their full-service counterparts, who onboard for a total of 37 (FOH) and 38 (BOH) hours. There is higher parity in new hire training hours for unit-level managers and general managers across restaurant types. General managers at QSRs spent 228 hours training, while those at full-service restaurants spent 281 hours training — a difference of 19%. And the difference in unit-level managers was even lower: 193 hours at QSRs vs. 214 hours at full-service restaurants, resulting in a 10% difference.

Average number of training hours per employee on new hire role training

QSR Restaurants

Full Service Restaurants

FOH hourly employees

25

37

BOH hourly employees

25

38

Unit-level managers

193

214

Unit-level trainers

41

37

General managers

228

281

# of Businesses: 35

Hospitality Training 360 Report - Part 2

Upsurge in ongoing training reflects a need for adaptation Ongoing training has seen an outsized increase recently, growing at a much faster clip over the last five years than new-hire training. In that time period, average ongoing training hours for employees increased between 125% and 242% (depending on role). FOH/BOH hourly employees spend roughly 30 minutes per week training, while unit-level managers and general managers spend closer to an hour per week.

Considering the skills gap that so many respondents cited, however — particularly when it came to management and leadership, customer service, and interpersonal skills — ongoing training may still be falling short. Average number of training hours per employee on ongoing role training

2019 2024 % Difference

FOH hourly employees

9

26

189%

BOH hourly employees

7.9

27

242%

Unit-level managers

18

47

161%

Unit-level trainers

27

The average cost of turnover for a restaurant worker is nearly $6,000. And with helpful training makes employees 76% more likely to stay, L&D investments are money well spent.

General managers

30.6 69

125%

# of Businesses: 39

This aligns with findings from Part 1 of our report, in which 92% of businesses surveyed stated that continuous learning would be a major focus in the next year. It's also worth noting that continuous learning is just one approach that is growing in popularity. Others include reinforcement learning and everboarding. Clarifying how each approach aligns with your business's requirements will optimize the efficiency of your ongoing training efforts

What respondents said: “We’re prioritizing training to become an employer of choice. Knowing that an employee will get top-of-the-line training and skill during their time at our company helps set us apart.” Source: Hospitality Training 360 Report, Part 1

Hospitality Training 360 Report - Part 2

Deep Dive

QSRs lead the way in ongoing training

Average number of training hours per employee

QSR Restaurants

Full Service Restaurants

% Difference

While QSRs' overall training hours are lower, tenured employees actually spend more time training at QSRs than at full-service restaurants. In fact, FOH/BOH hourly employees spend over 80% more time training than their full-service counterparts, 39 hours per year at QSRs vs. 21 hours at full-service restaurants. For unit-level managers and general managers, the difference is even more pronounced. Unit-level managers at QSRs train for 157% longer than their full-service counterparts — a figure that increases to 173% for general managers. While full-service restaurants’ more complex operations lead them to frontload training, those aiming to make onboarding more efficient may want to look to their QSR counterparts for inspiration. Reallocating hours from onboarding to ongoing training can result in faster starts, lower turnover rates, and better customer service.

FOH hourly employees

39

21

86%

BOH hourly employees

40

22

82%

Unit-level managers

77

30

157%

Unit-level trainers

45

15

200%

General managers

101

37

173%

# of Businesses: 28

💡 Pro tip: Some businesses are reframing onboarding to “everboarding” — an approach to training that emphasizes growth and development throughout the employee lifecycle.

Hospitality Training 360 Report - Part 2

Investing in ongoing training can lower costs, among other benefits QSR restaurants surveyed spent significantly less in training than their full-service peers — between 44% and 79% less, depending on the role. And the outsize rate at which QSRs utilize ongoing training over new hire training is likely a contributing factor. While it’s unlikely that full-service restaurants can lower their training spend to that of QSRs, continuous learning may help them offset the 40-50% difference. Slightly reducing your onboarding investment (say, by 10-20%) allows new hires to get on the floor faster. Then, you can redirect those resources toward ongoing training such as microlearning modules — which can often be completed quickly during shifts — to improve knowledge retention and skills.

Average training cost per employee

QSR Restaurants

Full Service Restaurants

% Difference

FOH hourly employees $778

$1,741

-55%

BOH hourly employees $795

$1,795

-56%

Unit-level managers

$3,748 $6,735

-44%

Unit-level trainers

$314

$1,468

-79%

General managers

$4,292 $8,581

-50%

# of Businesses: 25

Hospitality Training 360 Report - Part 2

While no two businesses’ training needs are identical, looking at benchmarking data can serve as a valuable reference point. What’s more, this data validates and quantifies the impact of many of the trends outlined in Part 1 of our report, particularly around: currently facing the hospitality industry — including a green workforce, high turnover, & rising labor costs — L&D serves as an essential bridge between addressing employee needs & achieving business goals. ● ● The imperative of L&D investments: With the multiple challenges Closing the gaps in manager training: While hourly workers are important, it’s ultimately frontline managers who set the stage for success. More businesses are recognizing that giving managers the training they need to succeed is the key to operational excellence, customer satisfaction, and same-store sales growth. ● The benefits of continuous learning: Onboarding may be the first step of an employee’s L&D journey, but it shouldn’t be the last. Continuous learning results in higher knowledge retention, improved skills, and lower overall training costs. By synthesizing real metrics and insights from other hospitality businesses into this report, we hope to help readers uplevel their own training programs and, more broadly, advocate for L&D at their respective organizations.

In Summary

Keep up-to-date by subscribing to Opus or CHART newsletters.

After all, what’s true for frontline workers is just as true for L&D leaders: Often, the best way to learn is from your peers.

Hospitality Training 360 Report - Part 2

Appendix

Training Budget & Hours Benchmark Data For those who want a more granular breakdown, we’ve provided detailed information on the relevant questions, responses, and demographics of our survey.

Hospitality Training 360 Report - Part 2

Appendix

Average yearly training cost per employee per role Per role, enter the estimated training cost per employee (cost of training) in the last year.

By Percentile

Overall Average

Role

Avg. training cost # of Businesses

FOH hourly

$1,242

32

BOH hourly

$1,229

33

Unit-level managers $4,918

29

Unit-level trainers $1,071

22

General managers $6,241

28

Note: The line denotes the minimum and maximum response, and the bar shows the 25-75% percentile.

Hospitality Training 360 Report - Part 2

Appendix

Average number of New Hire / Role training hours per employee per role Enter the estimated number of training hours per employee for new hire role training in the last year.

Overall Average

By Percentile

Avg. number of training hours

# of Businesses

Role

FOH hourly employees 35

50

BOH hourly employees 37

48

Unit-level managers

196

44

Unit-level trainers

57

35

General managers

239

43

Total response: 55

Note: The line denotes the minimum and maximum response, and the bar shows the 25-75% percentile.

Hospitality Training 360 Report - Part 2

Appendix

Average number of ongoing training hours per employee per role Enter the estimated number of training hours per employee for ongoing training in the last year.

Overall Average

By Percentile

Avg. number of training hours

# of Businesses

Role

FOH hourly employees 26

36

BOH hourly employees 27

36

Unit-level managers

47

34

Unit-level trainers

27

30

General managers

69

34

Note: The line denotes the minimum and maximum response, and the bar shows the 25-75% percentile.

Hospitality Training 360 Report - Part 2

About this survey This survey was run in January of 2024 and received responses from 138 businesses, representing 26K locations overall. Response rates varied by question, as each one was optional. For this report, each question garnered between responses from 30 and 60 businesses.

Firmographic data

What industry does your company operate in?

For restaurants, which segment best describes your company?

Which best describes your company?

# Businesses by Units

Hospitality Training 360 Report - Part 2

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