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A local business’ fate is often determined by the quality and efforts of their staff. But finding the right staff in San Francisco can be daunting. A shortage of restaurant workers, high retail turnover, and shifting worker expectations are national problems. Many San Francisco businesses face additional hurdles that make labor their biggest cost, like lagging foot traffic downtown and sky-high housing costs for employees.
Some local businesses take extra steps to retain their staff, creating the edge they need to thrive. Just ask Pete Mulvihill, the owner of Green Apple Books, a beloved San Francisco institution. “I wonder how I’m still doing this 30 years later. And it’s not [because of] me. It’s a huge team effort by the staff,” says Mulvihill. “Thirty-seven other people work at Green Apple, and they’re the ones who interact with customers every day. They’re the ones that shelve the books.”
Here are three innovative ways San Francisco business owners are creating loyal teams.
Innovative pay and ownership models
San Francisco has historically been a leader on setting a higher minimum wage — it’s currently $19.18 an hour — and some San Francisco business owners are moving away from traditional pay structures and ownership models to better meet employees’ needs. Not only does it benefit employees, but higher staff retention is also positive for the business.
Trestle SF, for example, gives their staff a flat hourly rate without tips. The team also offers health insurance, two weeks of paid vacation, plus sick time. “We started that post-COVID,” says Ryan Cole, co-founder of Hi Neighbor Hospitality, which owns Trestle. “If you have a busy day, you make the same money as if you have a slow day.” This stability attracts more seasoned staff who prefer a set schedule. “We have very little turnover in our front house,” Cole says.
Jennifer Piallat took ownership of Zazie in Cole Valley in 2005, seeking to “change the transitory, under appreciated culture of restaurant work.” Piallat went on to establish a profit-sharing plan for both full- and part-time employees, where 25% of every menu item goes directly to staff. She also instituted a no-tip policy at the bistro.
Back at Green Apple Books, the staff had actually unionized before Mulvihill took over. “We still have a union 30-some years later,” says Mulvihill, “And now I’m the guy who has to negotiate the contracts, which is a little awkward, but in some ways that led to opportunity. There were a lot of people coming and going from the store, and most people don’t stay in retail for more than a couple of years.”
For Mulvihill, having higher-than-normal staff retention means reduced onboarding costs and a team he can rely on. For customers, it means a stronger connection to the store and trustworthy sources when seeking advice on their next book purchase.
In the Mission, Reem Assil was a community and labor organizer before she opened Reem’s California, so it made sense for her to institute a worker-owned business model during the pandemic. Assil also added a 20% service charge instead of rely on tipping, which can be inconsistent, to boost wages. Reem’s is another great example of how thriving San Francisco business owners are building a culture of shared financial success as a route to build stability in one of America’s highest-cost-of-living cities.
Strong community ties help strengthen employee engagement
Reem’s strives to create a sense of home for their staff and surrounding neighbors, including marginalized communities. Reem’s California is an Arab bakery, but employs staff from all kinds of backgrounds. “Everybody connects over bread and other amazing things that remind them of home. We even call our Arab breads ‘tortillas’ sometimes. And when you walk into Reem’s, everything is written in English, Arabic, and Spanish,” Assil says.
Having a sense of belonging at work has shown to decrease turnover by 50 percent. At Reem’s this is critical to create for employees, but also nearby business owners and their staff, whom Assil views as part of the same ecosystem. She believes that when one business thrives, every business in that area should be able to thrive. “We really support one another, and we have our ears to the ground when things are happening, like broken windows,” Assil says.
When your staff is from the surrounding community, efforts to give back to that community will reverberate with your people. This goes both ways, too, as having a well-cared-for workforce will make employees proud ambassadors in their day-to-day lives.
The success of an independent book shop also hinges on a deep relationship with its neighbors, and Green Apple Books is no exception. Mulvihill credits his staff for keeping the community connection so strong that the shop experienced an impressive surge of financial support during the pandemic, when many other San Francisco businesses faltered. By finding ways to show your staff you care about them and their community, the more likely your staff will show up to carry your business through good times and hard.
Embrace tech that make employees’ lives easier
In a place like San Francisco where tech seems to shape every corner of life, restaurateurs and retailers need to keep evolving by bringing in new tools that make the experience better for their teams and their guests.
For example, Jacob Paronyan, owner of Roaming Goat, says Square Handheld cuts down on congestion in his long, narrow restaurant by giving staff the space they need to move around. “[Square Handheld] eliminates the amount of steps one has to take to get to the register. They could be outside and they could put in three or four orders all at once and be present with their [customer] as opposed to having to step away from their section to find the terminal,” he says.
Tech can also boost staff confidence during sales. “We use software as an opportunity for staff to learn about products,” says Mat Pond, owner of The Epicurean Trader. Pond takes advantage of the internal notes feature in Square to give his team the in-depth information they need on each product to be prepared to answer customer questions.
Looking ahead, Assil is excited to try out more AI tools at Reem’s California to help her busy team manage service, catering, and maintenance issues. “To be able to make that part easier so that they can ‘work on the business, not in the business,’ will be so amazing for us as a hospitality group,” she said.
San Francisco local businesses face some unique challenges, but having a strong team to lean on makes them much easier to handle. When business owners focus on supporting their team, they build a positive and more productive work culture, cut down on turnover, and attract top talent. Plus, they strengthen a critical web of neighborly connections among San Franciscans — both employees and customers — creating a positive ripple effect throughout the city.
