Lessons Learned: Shuckin’ Shack Works to Combat Employee Turnover

The restaurant industry is grappling with a significant labor crisis, particularly in back-of-house workers.

For many restaurants, the struggle to find and retain cooks, dishwashers and kitchen staff has reached crisis levels, especially in a post-pandemic world where the dynamics of work have shifted.

Restaurants are facing an unprecedented turnover rate that has averaged around 80 percent in the last ten years, according to the most recent data from Boston-based restaurant software management company Toast. In 2020, restaurants reported a turnover rate of 132 percent, according to Toast data.

Local seafood franchise Shuckin’ Shack Oyster Bar has faced all of these challenges since the opening of its first location in 2007. Rather than succumbing to the pressure, the restaurant has implemented creative strategies to incentivize and retain back-of-house employees.

Jonathan Weathington, CEO of Shuckin’ Shack, reflected on the impact of the company’s measures: “In the immediacy of COVID, and especially coming out of 2021 and 2022, we were faced with not just labor challenges but supply challenges as well. While everyone else’s turnover was going crazy, we saw ours drop by about 40 percent when we started implementing these incentives.”

Shuckin’ Shack co-founder Matt Piccinin attributes this success to several initiatives, including offering paid time off for hourly employees and the option for full-time employees to buy into a health insurance plan – both of which are rare in the industry.

“PTO is huge for hourly employees, especially in the kitchen, where burnout is common,” Piccinin said.

These benefits, combined with parking passes for staff at the Carolina Beach and downtown Wilmington locations, help alleviate financial stress and contribute to employee wellness. The parking passes, Piccinin points out, aren’t limited to work hours.

“It can save employees thousands of dollars a year, and they can use it on their off days too,” he said.

Shuckin’ Shack has also focused on paying competitive wages. While they declined to disclose specific numbers, Piccinin stressed that paying more upfront to keep good employees is more efficient than constantly training new hires. By keeping wages competitive, they can reduce turnover, creating a more stable kitchen environment and a more consistent customer experience.

“Turnover is costly, not just in terms of money but time,” he said. “You spend weeks training someone, only to lose them. It’s better to invest in keeping good employees.”

These incentives have helped improve morale, as has encouraging cooks to create specials and take part in menu development. Piccinin emphasized that empowering employees to be creative has had a positive impact on retention.

“It gives them a sense of ownership and pride in their work,” he said.

Piccinin also believes in providing opportunities to promote from within. Allowing employees who show strong leadership skills to move into managerial roles increases their earning potential and positively impacts the entire operation.

While these efforts have been implemented in the local company-owned locations, as a franchise, Shuckin’ Shack can only recommend these strategies to their franchisees.

“We can’t legally dictate these things, but we’ve shared our case studies and what’s worked for us,” said Weathington. “Some franchisees have adopted similar practices.”

One of the most innovative steps the restaurant has taken is the development of a test and training kitchen, aptly named “Out of the Weeds.” As those who have worked in restaurants know, the phrase “in the weeds” refers to when a kitchen is slammed and struggling to catch up.

Having a dedicated training facility for new staff and new franchise owners allows for the initial training to take place without the pressures of a live kitchen.

“We can train them on the hard skills – like knife work and cooking techniques – in a focused environment, and once they’re ready, we bring them into the real kitchen,” Weathington said.

Weathington also pointed out the importance of building a cohesive team that works well together.

“Hard skills, like how to cook or wash dishes, can be taught,” Weathington said. “But soft skills – like communication, teamwork, and responsibility – are more ingrained.”

Shuckin’ Shack prioritizes hiring people who can contribute to the team culture, even if they may need more time to develop technical expertise.

“You can’t run a successful kitchen if your team doesn’t work well together,” he said. “It’s not just about cooking, it’s about fitting in with the group and being able to support each other.”

Weathington acknowledges that turnover is always going to be something the restaurant business grapples with because many don’t see restaurant positions as long-term careers.

“We’re doing our best to create a work environment where employees are invested in their roles whether they’re here for a season or they see it as a career opportunity,” Weathington said.