Let's Talk About: Employee Benefits: Part One

Should coffee shop owners be obligated to provide employee benefits? We ask our online readers what they think.

BY EMILY JOY MENESES
ONLINE EDITOR

Featured photo by Daryan Shamkhali

In recent years, employee benefits such as health care, paid time off (PTO), and retirement plans have become increasingly common topics of discussion, even in industries known for temporary or part-time roles, like the café sector. While offering these benefits is standard in many larger businesses, cafés—which are often small businesses with tight budgets—may find this a challenging consideration.

This brings up a timely debate: Should cafés offer benefits to their employees, and what are the advantages and disadvantages of doing so? In this installment of “Let’s Talk About,” we’re hearing from Barista Magazine Online readers about their thoughts on the topic.

The Pros of Offering Employee Benefits

A barista serves rings up customers at the register as other customers wait for their drinks. — Offering employee benefits can boost team morale and reduce employee turnover rates. Photo by Aviv Rachmadian.

Pro #1: Attracting and Retaining Skilled Employees

One of the most significant advantages of providing employee benefits is attracting and retaining a skilled, motivated workforce. High turnover rates are typical in the service industry, partly due to a lack of incentives for employees to stay long-term. Benefits like health care and PTO help employees see their roles as stable, fulfilling jobs rather than short-term positions.

Cafés that provide benefits can differentiate themselves from those that don’t, attracting employees who are committed to the industry and want to work in an environment that seems supportive of their needs. This, in turn, reduces turnover, saving businesses on training costs and fostering a more knowledgeable staff, ultimately leading to a better customer experience.

The discussion is also connected to whether or not the barista role is seen as a temporary job or a viable career. Kittitas Café, a coffee shop based in Kittitas, Wash., shares how they aim to treat their employees as long-term team members rather than temporary workers.

“We offer health care benefits and gym memberships. We’re a small-town café and have found a way to make it work financially,” the team told Barista Magazine Online. “We actually believe it benefits us more in the long run! We do our best to keep employees long-term and hope we can eventually figure out ways to make their jobs here lifelong careers.”

A barista makes drinks behind the coffee shop bar as patrons wait by the side for their orders. — Kittitas Café shares how offering employee benefits like health care and gym memberships has helped them retain long-term team members. Photo courtesy of Kittitas Café.

Pro #2: Boosting Employee Morale and Productivity

Employee benefits can also improve your staff’s confidence and morale, fostering a positive work environment. Knowing they are valued by their employer, workers are more likely to take pride in their job and feel loyal to the café. Access to health care, mental health resources, and PTO can also allow employees to maintain a good work-life balance, which can reduce burnout and absenteeism.

And speaking from my own experience, I can say that healthy, well-rested staff members are likely to be more productive, efficient, and customer-focused, enhancing the overall quality of service. This effect will foster a positive environment for customers, too: When employees feel supported, they can build stronger connections with regulars and provide the warm, welcoming atmosphere that cafés should offer to maintain a loyal customer base.

A female employee standing at a cash register smiles as she rings up another woman — Research shows that gen Z consumers are placing greater emphasis on supporting ethical, community-centered businesses. Photo by Blake Wisz.

Pro #3: Building a Reputation Built on Ethics and Care

Research shows that today’s consumers—especially gen Zers—prioritize supporting ethical, socially responsible brands. Cafés that offer benefits may find that customers are willing to pay a little extra to support businesses that prioritize employee well-being. By focusing on being an ethical, community-oriented business, cafés can match the concerns of these customers, increase brand loyalty, and potentially offset some of the costs associated with offering benefits.

Stay tuned for part two of “Let’s Talk About: Employee Benefits,” where we’ll discuss potential challenges that coffee shop owners may run into and how to navigate them.