Your Restaurant’s Benefits Strategy Is Critical to Employee Retention

For restaurant operators, open enrollment season is an opportunity to consider whether their benefits offerings meet the needs of a workforce with varying schedules, eligibility, and expectations. It also provides an opportunity to identify where employees are struggling and to determine which benefits could most effectively support employee satisfaction.

According to Toast’s 2025 survey of over 600 restaurant workers, only 46 percent of respondents expressed contentment with their current benefits offerings. For restaurant owners, addressing these gaps can be an important part of supporting employee retention.

In an industry that struggles with high turnover, failing to create a comprehensive and competitive benefits strategy compounds turnover and talent acquisition challenges. By leveraging open enrollment season thoughtfully, restaurant operators can address employee pain points, improve retention rates, and ultimately strengthen their operational stability.

Open enrollment process

Open enrollment is the designated period of time each year during which employees can review and make changes to their employer-sponsored benefits for the year ahead. For employers, open enrollment is the process of preparing, selecting, and administering the benefits for their organization.

Employers often overestimate how well employees understand their benefits, especially when it comes to tax-advantaged or retirement accounts. Vestwell’s 2026 Saver Survey found that only 12 percent of workers receive financial guidance from their employer’s benefits or HR platform. Franklin Templeton’s Voice of the American Workplace revealed that 88 percent of workers want benefits explained in plain language rather than HR jargon.

Clear and transparent communication is critical to helping employees understand the value of their benefits packages, which can support employee satisfaction and help employers avoid potential staffing and retention challenges.

AI-powered benefits tools allow employees to enter their financial circumstances to receive personalized recommendations, explore cost scenarios, and identify coverage gaps. This enables staff to ask targeted questions when meeting with managers, owners, or workplace leaders, turning conversations into strategic discussions rather than basic plan explanations. For operators, this means your leadership or HR teams spend less time on repetitive education and more time addressing employee priorities.

Employee retention strategies

Given the restaurant industry’s higher turnover rates, there is a need for special attention to what can contribute to employee retention. When it comes to financial benefits packages, restaurant operators need to evaluate their employees’ needs, recognizing that a shift cook working 20 hours per week may have different benefits than a full-time general manager.

Part-time employees may have limited access to traditional benefits, making flexible savings options, emergency funds, or even modest 401(k) matching on pro-rated contributions valuable additions. Full-time staff, meanwhile, may place greater emphasis on comprehensive retirement plans and healthcare coverage.

Rather than taking a one-size-fits-all approach, consider how benefits offered during open enrollment and throughout the year can support employees’ financial goals across different roles and employment levels.

For multi-location operations, standardizing core benefit eligibility across locations while allowing some customization creates consistency and fairness. Managing costs does not necessarily mean cutting benefits. Instead, focus on providing high-impact offerings that resonate most with your employees. Whether that be accessible retirement options, financial wellness education, or emergency assistance, your benefits investment can directly address the challenges unique to your restaurant.

Pooled Employer Plans are 401(k) retirement plans with a simpler structure for restaurant operators. Instead of each restaurant running its own 401(k) plan and handling all the paperwork, rules, and legal responsibilities alone, PEPs let multiple restaurants share one plan together. Because the work is split among many employers, each restaurant does less paperwork and can save money while still offering employees good retirement benefits.

When restaurant employees know their employer prioritizes their financial future, loyalty and engagement naturally follow. Morgan Stanley’s State of the Workplace Financial Benefits Survey found that 85 percent of employees say they would feel more invested in their company if it offered financial benefits tailored to their needs. Demonstrating commitment to staff security builds a workplace culture that workers genuinely appreciate.

Open enrollment provides a natural opportunity to turn that commitment into action by evaluating benefits, addressing coverage gaps, and helping employees make the most of the resources available to them.

*Kevin Gaston is the Head of Strategic Retirement Consulting at Vestwell, bringing deep expertise in retirement planning and consulting. With a talent for simplifying complex concepts, he has worked with individuals, corporations, non-profits, advisors, and TPAs to drive better outcomes. Gaston holds degrees in Economics and Law from Amherst and a distinguished set of industry certifications, including ASPPA CPC, QPA, QKC, QKA; NAPA CPFA and NQPA.

He is also certified in Green and Lean Six Sigma. He also serves as President of the Atlanta ASPPA Benefits Council and is a member of the DCIIA Public Policy Committee.