Mar 2015 Financial News

Pizza Hut, KFC ‘hampered’ by staff shortage

Mar 12, 2015

Restaurant management company Prestige Holdings Ltd has said a shortage of 650 employees at its four brands-KFC, Pizza Hut, TGI Fridays and Subway—is to blame for service problems experienced by customers.

Speaking during a breakfast meeting hosted by the Trinidad and Tobago Chamber of Commerce at Westmoorings yesterday, Prestige managing director Charles Pashley said the shortage has put additional strain on workers, resulting in a high employee turnover.

“The challenges we have in terms of service are really not as a result of the people that are at our stores but as a result of the people we cannot get into our stores,” he said.

“Shortstaffing levels exacerbate many things in our organisation. Our service delivery is not acceptable, our sales could be better if we had more labour, our transactions could be higher. This lack of labour increases working hours and increases the turnover that we face in our restaurants,” he noted, adding that 50 per cent of restaurant staff leave within one year.

He said not even a 25 to 30 per cent increase in the minimum wage or the move to reduce the entry level requirement from three O-Levels to a secondary completion certificate, have encouraged people to seek employment at the company’s restaurants.

“Entry level wages in the industry are currently between $16 and $20. We’ve introduced incentives for team members. The free meals, free uniforms and all the benefits that we have in place really do not work as effectively and the reality is that we just don’t have the right number of people.”

He added though: “We need to recognise our employees who provide for our customers and keep our stores open. In spite of them operating in very difficult circumstances, for instance, (Tuesday) night our Independence Square Subway was robbed at gunpoint. Four young bandits came in and robbed the store at 20 to 11. So in spite of having labour challenges we also have crime issues and other challenges for our employees to operate.”
Pashley said apart from gradually reducing the Community-based Environmental Protection and Enhancement Programme (CEPEP) and the Unemployment Relief Programme, Government must look at opening the market for immigrant labour.

He noted that if the 650 people needed by Prestige Holdings was taken from the social programmes, Government could save up to $40 million in wages a year.

“Right now if we go to any one of the social programmes and take 650 people and put them in our stores, immediately this country saves $30 million. Now the benefit for us is that we believe if we get the 650 people in our stores, our sales will go up by a minimum of five per cent. That is $45 million. VAT on $45 million is $7 million. So the government saves $30 million in wages.”

“They get an additional $7 million in VAT and then our corporation profit is about $10 million before tax so the government gets another 25 per cent, therefore they get about $2.5 million there. So in essence, if we were able to get our 650 people from these social programmes, the country will benefit in excess of $40 million. We are one company, so if you multiply that 20-fold for Trinidad and Tobago you’re talking about $800 million to $1 billion in potential savings and benefits to the economy.”

Source:
By Leah Sorias
Trinidad Express
Thursday March 12, 2015

http://www.trinidadexpress.com/business/Price-drops-to-US4817-296010441.html