How can F&Bs cope with the manpower drought?

F&B outlets will enjoy a surge of profits but only if they pump up productivity of their existing employees.

The F&B industry faces dire constraints in new manpower, predicts Mr Cheong Hai Poh. President of the F&B Managers' Association, and Singapore restaurants can look to the American service model for inspiration in driving up staff productivity.

"A visitor to Universal Studio told me that the restaurants there typically employ 1/3 the number of waiting staff as the same restaurants in Universal Studios in Sentosa. If we can raise our productivity fashioned after the American F&B outlets observed, by 10%, 15,000 of the 150,000 can be freed up to be redelopyed elsewhere. If we can raise it by 30%, it would mean 45,000 “new” workers available for reployment," he said.

"Economically speaking, the F&B industry is an important sector in terms of employment. It hires 150,000 people and contributes S$2.2 billion (or 10 per cent) of the overall tourism receipts for 2011. In the coming years, we will expect the F&B sector continue to grow. Based on MND’s projections, some 450,000 sqm of commercial Gross Floor Area will come on stream in three growth centres – Jurong Lake District, Paya Lebar Central and Kallang Riverside in the next 5 years," he added.

"If we also factor in possible increases in tourist arrivals for our IRs and other attractions, we can expect both qualitative (e.g. spending per diner) and quantitative (e.g. number of diners) increases for the F&B industry. However, F&B sector will need to cope with these welcomed increases with a restrained supply of (new) manpower," he said.

"Raising productivity requires efforts on all fronts. For business owners, productivity improvement means a fundamental mindset shift from long-held practices and potentially changing current business models. It is also important to share back gains from productivity improvements with their employees. Alignment of interests between employees and business owners is most logical and effective in motivating employees to excel," he said further.

"For managers and supervisors, it means process re-engineering and equipping staff with the right skills and product knowledge. It also calls for managers to effectively build teams of multi-skilled workers. As for the workers, it means accepting new ways of working and being proactive in undergoing continuous learning," he said.

"Companies should make use of technology to reap cost savings, reduce manual labour required and achieve greater efficiency in processes. For instance, using a procurement portal can help restaurants integrate better with their suppliers. Online procurement activities powered by IT can also improve supply chain efficiency and reduce human error," he added.

"Consider the example of Gayatri, an Indian restaurant. It recently integrated technology into its operations by implementing an e-menu ordering system. With the new system, customers’ can now place order real time to the kitchen. Subsequent payments are also settled through a wireless point-of-sales device at the table. The new system reduces the need for serving staff to walk back and forth. As a result, Gayatri saw a 20% increase in productivity and 15% in revenue. A number of front-line staff are now freed and could be re-deployed to their new outlets," he said further.