Anatomy of a Job Benefit: Employee Meals

In the past two weeks I have had lunch with two people who work in the restaurant industry – one is a CHART member from California, and one works for a local chain here in Seattle – and both told me the same thing: they do not offer a meal program for their staff. I was really surprised because it has been one of the more popular benefits we offer at Ivar’s. Our team members get a free meal during every shift they work and a 15% discount on any food they purchase when off-duty, and managers, directors, and office personnel receive a house account with a monthly balance that they can use to get free food at any of our locations.

It seemed so strange to hear this news from these colleagues because we are all part of the restaurant community, and our goal is to feed people – and shouldn’t that mission extend to our employees as well? Shouldn’t we be investing in their well-being so that they have the energy and stamina to work their long, challenging shifts and take care of the guests to the best of their abilities? So that they can they stay focused, stay alert, and stay safe within the workplace?

Advantages to Employee Meals

Beyond the immediate benefit of providing nourishment and sustenance to employees, there are several additional advantages that come with implementing such a program:

• Effective retention tool – Offering meals can not only differentiate yourself from other types of employers, but also boost employee satisfaction and loyalty, potentially reducing turnover rates in an industry known for high staff churn. According to a survey by EZ Cater in 2022, 65% of survey respondents said that employer-provided meals motivated them to want to continue working for that business.

• Relatively low-cost benefit – Working in a restaurant (or a hotel with a restaurant attached) means you already have all the equipment necessary to prepare food, so you don’t need to figure out how to add anything new. Plus the equipment will already be running since you need to prepare food for the guests, which means no extra electricity or gas expense. Your costs will be mostly limited to the ingredients in the menu item and the time to prep them.

• Enhanced menu knowledge – Allowing employees to regularly taste the food from your establishment will make them more familiar with the overall menu and help them to provide more authentic recommendations to guests who ask for guidance when ordering. You could also incorporate staff meals into pre-shift menu tastings, thereby serving a dual purpose of staff education and nourishment.

• Time efficiency – On-site meals eliminate the need for employees to leave the premises during lunch or dinner breaks, which will help to ensure their prompt return to work and reduce tardiness.

• Reduced food waste – Properly managed employee meal programs can help utilize ingredients that might otherwise go to waste and contribute to your company’s sustainability efforts.

How to Keep Employee Meals Within Budget

Now, I know what you’re thinking – all of this sounds great, but what about the cost? Even though I mentioned that it would be relatively inexpensive compared to other benefits, it’s still going take away from the bottom line. But fortunately, there are steps you could consider when investing in an employee meal program to keep it within the budget of your organization:

• Limited menu – Instead of allowing employees to pick an entrée from your entire menu, you could save money by creating a streamlined submenu for staff meals that include items with lower ingredient costs, or perhaps items that are easier and quicker to prepare.

• Scaled portions – Another option to lower the potential expense would be to provide smaller serving sizes for your employee meals compared to the amount given to the guests.

• Small co-pay – If necessary, you could ask employees to contribute a nominal amount for their meals to offset the costs, or you could cap the total meal benefit at a certain amount and ask the employee to pay anything over that limit. If you do offer smaller portions as mentioned in bullet point #2, you might also offer the employee the option to purchase the regular-sized portion at a discounted rate if they desire.

• Tiered benefit system – Offer different levels of meal benefits based on factors like tenure or position to allow for a more gradual scaling up of the program. New employees might receive a basic meal benefit, for example, while those with more years of service or in higher positions could receive enhanced meal options. This not only helps manage costs but also provides an incentive for staff members to stay with the company and advance in their roles.

• Family-style meals – Offer a single, large-batch meal for the staff instead of individual orders, which can be more cost-effective and efficient to prepare as you can take advantage of economies of scale and reduce food waste. Family-style meals also foster a sense of community and teamwork among employees, as they share a common meal experience, and you could rotate the menu to keep it interesting and ensure it meets various dietary needs.

Steps to Roll Out an Employee Meals Program

Implementing an employee meal program may seem daunting for those companies without one, but it's actually a straightforward process that can be tailored to fit your unique needs and resources. With a bit of planning and communication, you can follow these steps to roll out a program that benefits both your staff and your business:

• Assess your resources – Before diving into the specifics, it's crucial to establish guardrails that will keep your program sustainable and feasible. Start by working with your operations team, chefs, and purchasing department to take stock of your equipment capacity, storage space, prep space, prep times, refrigeration needs, ingredient availability, and budget to help you determine what type of meal program you can realistically offer within your restaurants. By setting clear boundaries and understanding your limitations upfront, you can design a program that won’t negatively impact your daily routines.

• Design your program – Decide on the specifics such as menu options, portion sizes, meal times, appropriate eating places, limitations (such as excluding alcohol and high-cost items) and any employee contributions or restrictions. You should seek input from your team members during this stage to understand their preferences so it both meets their needs and is perceived as a valuable benefit. Additionally, you could reach out to your industry colleagues, including your friends in CHART, to ask how they have set up their systems and if they have unique approaches that contributed to their success.

• Communicate the program – Inform your staff about the new benefit using the various communication tools at your disposal (emails, texts, flyers, pre-shift meeting topic, etc.). You might consider having an online meeting open to any interested individuals to explain how it works and address and questions or concerns they might have, and you should be transparent about the program's guidelines, the reasons behind any limitations, and how it aims to benefit the employees.

• Train your kitchen team – Ensure your culinary staff understands the new procedures for preparing employee meals, including any special menu items or portion sizes. Provide clear instructions on how to integrate meal preparation into their regular workflow without disrupting service to the paying guests. Training should also cover any health and safety standards specific to the food, such as handling allergens or catering to dietary restrictions.

• Launch and monitor – Start your program and closely observe its impact on metrics such as staff satisfaction, participation rates, overall costs, as well as any changes in staff retention or productivity. Be prepared to use this data to make adjustments as needed to improve the meal benefit over time. 

By thoughtfully constructing an employee meal program, hospitality businesses can create a win-win situation. Staff members receive a tangible, daily benefit that improves their work experience, while employers gain a more satisfied, knowledgeable, and loyal workforce. In an industry where the quality of service can make or break a business, investing in your team through something as fundamental as a good meal can pay dividends in the long run.