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Transforming Restaurant Recruitment: AI's Role in Hiring and Retention

In the era of technological transformation and shifting consumer preferences, the restaurant industry is standing at an intriguing juncture. Recognizing the pressing challenges faced by operators, the National Restaurant Association is actively exploring modern solutions that can redefine restaurant operations.


A standout solution gaining momentum is the integration of artificial intelligence (AI) in employee recruitment, hiring, and retention strategies. By embracing AI in these domains, restaurant owners can significantly enhance their managerial productivity, streamline back-end operations, and fortify their bottom line.


Josh Secrest, vice president of marketing and advocacy at Paradox, a conversational hiring platform, stated, “The restaurant industry's recruitment challenges are profound.” With numerous restaurants grappling with understaffing, AI is carving out a path to alleviate these issues.


Sharing insights from a recent webinar, Secrest emphasized the industry's current staffing dilemma, noting, "There's a massive person gap between labor demand and supply." Moreover, with platforms like Indeed suggesting that job-seekers typically apply for multiple jobs concurrently, the competition for employers is fierce.


Courtney Dempsey, the director of digital recruiting at Southern Rock Restaurants, revealed the recruitment challenges her company faced. The hiring process was sluggish and convoluted, leading to missed opportunities with potential hires. “Our annual expenditure for recruiting was approaching $900,000,” said Dempsey. Recognizing the need for change, Southern Rock Restaurants turned to Paradox's AI-driven applicant tracking system (ATS).


Named 'Savannah', this AI avatar interacted with applicants in a manner mimicking human conversation, making the application process more engaging. By simplifying the screening process, candidates could swiftly schedule interviews, with reminders and rescheduling options included. Recognizing that a vast majority of applicants accessed the system via mobile devices, features like geolocation made the application process even more user-friendly.


To cater to Gen Z applicants, Southern Rock shifted its recruitment messaging to be more culture-centric, emphasizing a fun and welcoming work environment. The company also capitalized on everyday items like napkins and cups by embedding QR codes, turning them into recruitment tools. An innovative 'text-to-apply' feature further simplified the application process.


The results? The hiring decision time was reduced drastically from 10 days to just 36 hours. Weekly applications skyrocketed, and the company built an impressive database of potential candidates. Moreover, the transition to a predominantly organic recruitment strategy resulted in an impressive savings of $840,000 for Southern Rock.


Eager to extend the system's capabilities, the company is now integrating payroll functionalities. Dempsey lauds the conversational ATS, but is particularly excited about potential retention features. She says, "That’s my next focus."


In this age of constant evolution, AI's integration provides a promising avenue to reshape the future of the restaurant industry. The goal should be to let AI complement human decision-making, optimizing processes and enriching the overall employee experience.

For a deeper dive into this transformative approach to recruitment, you can access the full webinar https://bit.ly/3tMiQT2.

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