Taco Bell is increasing its focus on workforce development throughout the franchise system, arguing that doing so can help keep employees around longer.
The fast-food Mexican chain said Thursday that it plans to expand its leadership programs, including broadened education benefits. Most notably, the company plans to make its "Tacos and Tuition" education benefit available to employees at franchisee-owned locations.
The program, in partnership with InStride, gives team members access to more than 3,000 online programs and courses ranging from English as a second language and GED programs to master's degree courses. There are no out-of-pocket costs for employees who use the benefit, and the program represents more than $10,000 in tuition value for participating workers.
"I started my career on the front line of restaurants and I've seen firsthand how the right support can open doors that once felt out of reach," Jamie Harrison, global chief people and culture officer for Taco Bell, said in a statement. "No matter how long a team member is with us, we want their time at Taco Bell to be meaningful."
Taco Bell said these efforts at company stores improved retention by 17% year-over-year. The initiatives also reduced the number of vacancies among general managers by 27%.
Retention among front-line workers who've enrolled in the program has risen to 73%. General managers enrolled have retention rates that are 1.5 times higher than those not in the program.
These numbers are key for a growing chain whose franchisees have a constant need for employees. Taco Bell franchisees operate 7,100 locations and the system as a whole has more than 250,000 team members.
In a fast-food world in which high turnover is the norm, keeping workers around longer can be a real competitive advantage. And it's crucial when it comes to general managers, who exert considerable control over the operation of a single store. As such, retaining such employees is a key priority for the chain.
In addition to the tuition program, Taco Bell has a new leadership development program for its general managers and area coaches designed to prepare rising talent to reach the next level, called "theLeap." It also has the Live Mas Scholarship. The company awarded a record $14 million in such scholarships last year.
Meanwhile, Taco Bell said it is testing enhanced service models in some locations, including those with the chain's beverage-focused Live Mas Café concept. The test is designed to inspire more consistent, "elevated" guest experiences. The company said locations using that service model have 3% higher transaction growth.
The company also said two-thirds of its restaurant leadership roles at company locations this year have been filled through internal promotion. Nearly 25% of general managers at company locations have been with the brand more than 15 years.
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