The surprising secret to managing rising food prices for QSRs

Operations

QSRs facing inflation should prioritize employee training and development as a cost-saving strategy, rather than cutting it, to reduce turnover and improve operational efficiency. Investing in structured training programs, including microlearning and leadership development, leads to better retention, reduced waste, and enhanced service,

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April 4, 2025 by Patrick Donovan — Chief Operating Officer, InStride

For quick service restaurants (QSRs), inflation is hitting where it hurts the most — food costs. Staples like eggs and dairy, have seen sharp price increases, forcing operators to find ways to protect already thin margins. In response, some restaurants have resorted to cost-cutting measures that, while practical in the short term, don’t create a competitive advantage and can be detrimental in the long run. Among the first budgets to get slashed? Employee training and development.

But cutting training budgets can backfire. Instead of saving money, it often leads to inefficiencies, higher turnover and service disruptions, all of which drive costs even higher. Meanwhile, turnover remains a massive financial burden for QSRs, with the average cost of turnover for a frontline employee exceeding $6,000 per year. For a QSR with 100 employees and a 75% turnover rate, this can amount to nearly $439,800 annually.

A more effective approach is to double down on employee training, which improves productivity, minimizes waste and strengthens overall operations. By focusing on upskilling and leadership development, QSRs can improve efficiency in ways that help mitigate rising expenses. Operators that invest in structured employee development see improved service speed, higher order accuracy, and reduced waste, directly counteracting the impact of inflation​.

The restaurants that commit to internal talent development not only retain top talent but also create a more efficient workforce that helps counteract the pressures of inflation.

Training and development as a cost-reduction strategy

Only one in four QSRs currently offer career development opportunities, despite them being a proven way to improve retention. Yet, providing employees with opportunities to grow doesn’t have to be complex or expensive. Restaurants can implement practical, on-the-job training that equips employees with the skills they need while keeping operations running efficiently. For example, microlearning — short, focused training sessions — can be integrated into daily shifts, allowing employees to absorb key concepts without stepping away from their roles for extended periods. Digital training platforms and mobile-based learning modules can also make it easier for employees to access training at their own pace, reducing the need for costly, time-consuming classroom sessions.

Cohort-based learning is another powerful tool for cost savings. When employees are trained in small groups, they develop stronger teamwork skills, reinforce each other’s learning, and build a sense of camaraderie that can improve retention. This approach allows team members to learn from each other’s experiences, reinforcing key concepts through discussion and real-world application. Cohort-based learning also helps build stronger team dynamics, increasing employee engagement and reducing the likelihood of turnover.

Cross training is another effective strategy. When employees are trained to perform multiple roles, restaurants gain more scheduling flexibility and can reduce the disruptions caused by unexpected absences. A cross-trained workforce also improves operational efficiency by allowing employees to step in where they’re needed most, minimizing bottlenecks and ensuring a smoother customer experience.

Leadership development should also be a priority. Investing in shift supervisors and future managers ensures that teams have strong, capable leaders who can maintain consistency, resolve challenges and support employee growth. The reality is that turnover in QSRs isn’t just about wages — employees stay when they feel themselves developing and see a clear path for growth. When workers see that clear path to advancement, they’re more likely to stay, reducing costly turnover and improving long-term stability.

Practical steps

The foundation of any effective employee development program is a clear understanding of the essential skills required and where current gaps exist. Start by analyzing performance data, customer feedback and employee input to identify recurring challenges, such as order accuracy, service speed or team communication. Employee surveys and manager evaluations can provide further insight into skill deficiencies, whether in technical expertise, customer service, or leadership development. Once these gaps are identified, QSRs can leverage structured, practical training strategies that integrate smoothly into daily operations.

For instance, online learning and microlearning modules offer an efficient way to upskill employees without taking them off the floor for extended periods. Start by selecting a digital learning platform that supports short, interactive lessons tailored to QSR-specific skills. Modules should focus on key operational areas like food safety, order accuracy and customer service —three of the most critical skills for ensuring consistency and minimizing waste. To encourage participation, integrate paid training sessions into the flow of work — allowing employees to complete modules during downtime or before shifts. Tracking completion rates and quiz scores can help managers ensure engagement and identify areas where additional support is needed.

Additionally, consider partnering with workforce education providers to offer structured employee career development opportunities. QSRs can collaborate with community colleges, trade schools or online education platforms to provide courses in business management, culinary skills or customer relations. These programs should be customizable to align with the company’s career pathways, helping employees see a clear trajectory for advancement. To boost participation, consider offering a direct-bill model where employees do not have to front the tuition or incentives for course completion. This long-term commitment to employee growth can go a long way in enhancing workforce skills while also fostering a sense of loyalty and engagement.

Lastly, tracking the effectiveness of these programs is essential to ensuring they deliver real value. Establish key performance indicators (KPIs) such as retention rates, service speed, order accuracy, and customer satisfaction scores. Track changes in these KPIs over time, looking for improvements that correlate with training efforts. Additionally, gather direct feedback from employees and managers on how well the training translates to real-world performance. If certain areas show little improvement, adjust the training approach, whether by incorporating more hands-on practice, improving content delivery, or personalizing learning paths based on individual progress.

Final thoughts

In a challenging economic climate, cutting training may seem like an easy way to save money, but it often leads to higher costs in the long run. With the average QSR losing up to $150,000 annually due to turnover​, the real question isn’t whether businesses can afford to invest in training — it’s whether they can afford not to.

Training isn’t just an expense. It’s a cost-saving and revenue-growing strategy that reduces hiring costs, improves service speed, and builds a more stable workforce. QSRs that invest in employee education and training will be the ones that retain talent and control costs amid rising food prices.

About Patrick Donovan

Patrick Donovan, Chief Operating Officer at InStride, is an experienced executive with a track record of leading mission-driven organizations that leverage technology and services to drive impact. At InStride, he oversees customer success, implementations, and internal client marketing. Previously, Patrick was Chief Operating Officer, Emerging Services at Bright Horizons, where he led Back-Up Care, EdAssist, and College Coach, overseeing operations, product management, account management, and marketing. Patrick holds a Bachelor of Science from MIT and an MBA from Harvard Business School.

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