Three HR Mistakes That Hold Small Hospitality Businesses Back — And How to Fix Them: Insights from 10 Years on the Front Line (by Sofia Sepetjian)

Having spent the last decade growing and working at my family’s bakeries, I have become all too accustomed to the best and worst aspects of the industry. I went from an 8-year-old employee sampling our fresh bread to draw in customers to the Front of House Manager who trains new staff, handles customer complaints, and keeps day-to-day operations running as smoothly as possible. While the bakery feels like home, it has also taught me that small hospitality businesses often underestimate one of the most critical functions of the workplace: human resources. Unlike large, structured hotels, small businesses treat HR as an afterthought until a problem forces change. Over the years, I’ve noticed three major mistakes in HR that hurt employee morale, retention, and performance- and I want to share what steps we took to fix them.

Mistake #1: No Real Onboarding

Training is a big part of employee success, and small businesses often treat it as a one-time event that is easily forgotten. New hires are instructed to shadow- hopefully, a manager or shift lead, but often it becomes whoever is available that day. The shift involves them learning as they go and mainly relying on verbal instructions. The biggest problem I have seen comes from this way of “training”: inconsistent service and expectations. It’s like a telephone game where one employee teaches a task differently from another, leaving new staff confused and on their own. It was only when I finally began to train employees myself that I realized how much clearer things became when training followed a simple system: demonstrate the task, explain why it's important, have the person practice, and give feedback. Such a structured training model is covered throughout our HRM coursework. Even small businesses benefit from standardized procedures, clear checklists, and a designated trainer, not a "whoever is free" method.

To support this structure, I began implementing several new SOPs (standard operating procedures). First, I created food and beverage menu tests that I had each new hire take on their last day of training in the register position. Our cashiers must know how to suggest items, accommodate specific diets, and have a strong understanding of our extensive menu. If they scored below a certain percentage, they would need to retake the test until they mastered each concept. Another SOP I implemented was the use of recipe cards for additional food and beverage instruction. This provided step-by-step instructions for "mise en place" and drink/food prep, and included a picture of the end product. Lastly, I created detailed checklists for each position to guide daily opening, mid-shift, and closing responsibilities. The checklists were the most effective tool for employees, as they clearly defined expectations and ensured that all locations operated under the same standards. It was a heavy lift to tailor each checklist to each location’s layout, workflow, and hours, but it created the consistency we have never achieved any other way. With these tests, cards, and checklists implemented, the telephone game and all confusion were put to an end.

Mistake #2: Ignoring Employee Burnout

The “Everybody is replaceable” mindset is one of the main reasons these businesses stay small. When owners assume staff can push through long shifts with skipped breaks and constant multitasking, burnout becomes inevitable. Our stores used to have such a high turnover rate that I wouldn’t even bother remembering their names. Sad, but true. But it wasn't until we expanded to multiple locations and really needed proper consistency that we realized burnout wasn't solely a "people problem"; it was a management problem. Staff weren't lazy or unreliable; they were exhausted, confused, and unsupported. I worked with my parents to create realistic schedule guides that ensured guaranteed breaks and cross-training. Once we started treating burnout as an operational issue, the entire workplace shifted, and retention improved.

Mistake #3: Lack of Documentation

If there's anything this business has learned the hard way, it is this: if it wasn't written down, it never happened. Through many years, we depended on verbal agreements, memory, and "trust." And that worked just fine-until we had to fight through several lawsuits because we couldn't prove on record that breaks were taken, warnings were given, or training happened. And let me be blunt: when things go bad, your employees aren't your friends. People you swear would "never sue" absolutely will if they feel mistreated or see an opening. Without documentation, you're basically handing the case to them.

Over the years, I have learned that even small businesses thrive when HR is treated as a priority. Clear training, protected employees, and solid documentation aren't just "big company practices"; they are the very foundation of running a smoother operation and having a stronger team. Finally, making these changes improved service, morale, and business. HR is not just paperwork; it is the backbone of a successful workplace, even in the smallest hospitality operations.

Join the Discussion!

1. Have you ever felt unsupported or overwhelmed at work due to poor HR practices? What would have been helpful during the onboarding process or to prevent burnout?
2. If you were running a small business or bakery, which HR change would you prioritize first: onboarding, burnout, or documentation, and why?  

About the Author:

My name is Sofia Sepetjian, and I am a Hospitality Management major at Cal Poly Pomona with over 10 years of experience working in my family's restaurants. Growing up in an Armenian-Italian household, I have always found food and hospitality at the center of my life. Currently, I am a Front-of-House Manager at Pandor Bakery and a Laboratory Teaching Assistant at the RKR. My passion lies in creating positive workplace cultures and developing the next generation of hospitality leaders. Upon graduation, I hope to take over my family’s restaurant business and bring modern, people-centered HR practices into the hospitality industry.

Note: The picture of Pandor Bakery was downloaded from the Irvine Standard. Sofia Sepetjian wrote this essay as an assignment submitted to my HRT 3500 Management of Human Resources in Hospitality class.