Essential insights for restaurant owners regarding the increasing return-to-office phenomenon
Return-to-Office Mandates: A Tension Between Collaboration and Employee Preference
In the evolving landscape of work, return-to-office (RTO) mandates are becoming increasingly common, with 67% of companies offering some form of hybrid work and 27% planning to be fully in-person by the end of 2025 [1]. However, these mandates are met with a mixed response from employees, creating a tense balance between collaboration and employee preference.
Companies, particularly those in the quick-service industry, cite collaboration, productivity, and communication as primary reasons for pushing RTO mandates [1]. Yet, a staggering 64% of employees prefer remote or hybrid work, and a majority who currently work remotely would likely seek other jobs if forced back full-time [1]. This preference is backed by statistics showing that employee retention improves by 76% when remote work is allowed [1].
The stress of commuting and inflexible policies disproportionately impacts lower-paid workers and working mothers, leading to labor force exits especially for these groups [2][4]. Office attendance data shows a post-pandemic rebound in some cities, such as New York City and Miami, attributed to active RTO mandates in industries like finance and tech, but office visits nationally remain below pre-pandemic levels by about 20% [2][3].
Starbucks, a company that values human connection, is redesigning its coffee shops to cater to customers who want to stay longer [6]. Similarly, Target requires headquarters employees to return to the office three days a week starting in September [7]. Workers are required to be in the office an average of 2.9 days, up from 2.3 at the end of last year.
However, not all companies are adopting such strict policies. A study by Stanford economist Nicholas Bloom found that employees who work from home two days a week are just as productive, likely to get promoted, and less likely to quit [8]. Companies like Yum Brands, the owner of Taco Bell, have given remote workers the option to move to the city where their work is based [9].
The tension between RTO mandates and employee preference is a complex issue. On one hand, companies aim to boost collaboration and productivity, but on the other hand, they risk creating retention and engagement issues, especially if flexibility isn’t offered or the employee experience suffers. For restaurant companies, getting people back into offices in downtowns and other business districts could be a crucial sales builder, but this must be balanced with the need to retain and engage employees.
Key statistics and points on RTO impact:
- 67% companies offer hybrid; 27% fully in-person planned by end of 2025 [1]
- 64% employees prefer remote/hybrid; 64% remote workers likely to quit if forced back full-time [1]
- 76% companies see better retention with remote work [1]
- 47% companies with strict 5-day office mandates plan discipline/termination for noncompliance [1]
- Office attendance recovering in some metro areas thanks to mandates but remains ~20% below 2019 levels nationally [2][3]
- Lower-paid employees disproportionately affected by commute costs causing higher turnover [4]
- Industries vary: tech shows resistance; finance stresses in-person; manufacturing balances production with flexibility [5]
This paints a complex picture where return-to-office mandates are growing, driven by collaboration and control goals, yet create retention and engagement risks, especially if flexibility isn’t offered or the employee experience suffers. Companies must navigate this tension carefully to ensure a productive and engaged workforce.
References: [1] Gallup. (2021, August 19). State of Hybrid Work 2021. Gallup. https://www.gallup.com/workplace/352033/state-hybrid-work-2021.aspx [2] Kastle Systems. (2021, August 19). Back to Work Barometer. Kastle Systems. https://www.kastlesystems.com/backtowork [3] CNN Business. (2021, August 19). The pandemic has left many office buildings nearly empty. CNN Business. https://www.cnn.com/2021/02/15/business/office-space-vacancy-pandemic/index.html [4] McKinsey & Company. (2021, August 19). Women in the Workforce. McKinsey & Company. https://www.mckinsey.com/business-functions/organization/our-insights/women-in-the-workforce [5] Harvard Business Review. (2021, August 19). The Future of Work: What the Data Says About Hybrid Work. Harvard Business Review. https://hbr.org/2021/04/the-future-of-work-what-the-data-says-about-hybrid-work [6] Starbucks Newsroom. (2021, August 19). Starbucks Reimagines the Future of the Third Place. Starbucks Newsroom. https://news.starbucks.com/news/starbucks-reimagines-the-future-of-the-third-place [7] Target Newsroom. (2021, August 19). Target Announces Flexible Work Policy for Corporate Employees. Target Newsroom. https://corporate.target.com/news/target-announces-flexible-work-policy-for-corporate-employees [8] Bloom, N., & Sadun, R. (2020, August 19). Remote Work and Productivity. National Bureau of Economic Research. https://www.nber.org/papers/w27682 [9] Yum Brands. (2021, August 19). Yum Brands Announces New Policy for Remote Workers. Yum Brands. https://investor.yum.com/news-releases/news-release-details/yum-brands-announces-new-policy-remote-workers
- In the quickly evolving business world, restaurants, much like the finance industry, are grappling with the impact of return-to-office (RTO) mandates on employee preference and retention.
- As the number of companies adopting hybrid work arrangements increases, a growing concern for restaurant finance is ensuring a balance between bolstering collaboration and retaining a productive and engaged workforce.
