DoorDash Offers Restaurants a Labor Shortage Lifeline

As restaurants continue to struggle with staffing issues, DoorDash has debuted a program designed to help its merchants retain employees.

Merchant Benefits, which the delivery service calls “an industry-first program,” is designed to give merchants access to discounts on products and services, based on their needs, DoorDash said in a Monday (Nov. 7) news release. And these days, those needs include attracting and retaining staff.

“The economic fluctuations that come with running a small- to medium-sized business challenge employers in many ways, including being able to provide affordable benefits to staff,” said DoorDash President and Chief Operating Officer Christopher Payne in the release. “Given our vast network of merchant partners, we’ve negotiated these benefits on their behalf who would otherwise face a steep surcharge, eliminating a barrier to growing teams to their full potential.”

The program will begin with DoorDash teaming up with other organizations that work to help restaurants offer access to healthcare, mental health benefits and career development, the release stated.

Among these partnerships is one with the cash-pay healthcare marketplace Sesame, which offers plans that start at $5 per month, as well as a free month with Landed, a recruiting platform that screens hourly job candidates, according to the release.

PYMNYS noted last month that restaurants’ labor challenges have become so severe that many are turning away would-be diners, sacrificing sales opportunities, and potentially putting the goodwill of their customers at risk.

According to findings from the 2022 edition of PYMNTS’ Restaurant Readiness Index, which drew from a survey of more than 500 managers of quick-service restaurants (QSRs) and full-service restaurants (FSRs) around the country, 19% have had to turn away customers in the face of labor difficulties.

In response to these challenges, and in an effort to stave off such issues in the future, many restaurants have begun to get more analytical about their labor.