The Indian Food & Beverage industry is one of the most vibrant industries that has seen phenomenal growth over the past and continues to grow with a promising future. The restaurant industry is expected to contribute about 2.1% total GDP of India by 2021 due to various factors such as urbansation, increasing disposable incomes and a large share of young population (KPMG Report, 2016). These have contributed to changing trends, frequent eating outs, experimenting various cuisines and also seeking innovations in products, services and presentations in the food industry.
This change has eventually led to the demand of workforce requirements, which is expected to almost double in numbers by 2022 indicating strong potential and new employment opportunities. Though this proposal seems promising there is this huge gap of employability issue in this industry as the success in a food service venture depends heavily on the skill set of its workforce. According to a report released by KPMG (2016), constantly changing lifestyle, consumer demands and the rising cost of skilled staff due to high attrition rates have led to the broadening of the employment gap.
(Source: India’s food service industry: Growth recipe, KPMG, 2016)
There has been initiatives taken by the government to address the skill gap in this industry like the “Pradhan Mantri Kaushal Vikas Yojana 2.0, 2016” to skill over 10 million people from the period 2016 to 2020. The scheme offers INR 110 billion support to skill-based training for 577 different job roles, through 31 councils and for the hospitality industry, it covers training for 4 job roles: housekeeping, customer service, room attendant and food & beverage service (Pradhan Mantri Kaushal Vikas Yojana (PMKVY) Courses List & Job Roles, Sarkariyojna website, accessed October 2016). Apart from this the union budget of 16-17 has allocated INR 17 billion towards establishing 1500 multi-skill training institutes in the country (Press Information Bureau, Ministry of Finance (Government of India), 29/02/2016)
Here is our share of initiatives….
The attrition rates for a Quick Service Restaurants (QSR) and fast food segments hovers somewhere between 90% to 100% for semi-skilled workers while its 60% for skilled workforce (How to Start a Restaurant Business In India, Muvsi website, 18/07/2016; Human resource and skill requirements in the Travel, Tourism, and Hospitality sector, NSDC, April 2015). Such high attrition rates inhibit hire or retain cheap staffs, hence the retention costs get higher by paying competitive salaries and additional perks such as providing food, accommodation apart from the miscellaneous cost such as compliances, recruitment and training costs.
Hence in order to meet the ends, some of the QSR’s like us follow the concept of “Open Hiring” System with in-house training programmes and collaborative structured programs from institutions. This system accepts people from all walks of life and are trained hand’s on and equipped with necessary skills depending on the job role. To avail this benefit all they have to do is to approach their open doors with an open mind for a job and open to learning. This system is highly beneficial for people who posses no education, skill or prior work experience, or who would just love to work in the food industry.
In this system the restaurants have on-the-job training programmes in place wherein the new staff are introduced to standard operating procedures, quality-hygiene standards, rules & regulations by the crew trainers depending on their job responsibilities. Now-a-days most of the restaurants are working on improving other capabilities around management and communication skills to deliver additional value to customers rather than just food experience.
These solution seems to be a win-win solution for the employee and the employer as the former gets equipped with skills and job assured, whereas the latter get his workforce customised to his requirement and sometime better retention rate of the employee.
Over the past 15 years MIS had faced its share of high attrition rates and lack of access to skilled labour like the any other QSR’s in the region. over numerous hundreds of employees have walked in and out of our organisation. But one thing that makes restaurants like us happy and proud is that we have provided equal-opportunities, played a significant role in skill-development and a career launch-pad for thousands of people who have seeked our doors!!
Skill development doesn’t happen only in educational institutions, centres or schemes propelled by government/NGO’s. Even business play a crucial part in nurturing those who look towards them.