As A Crises Loom, More Restaurant Chains Add Mental Health Benefits

There are a number of factors at play that could position some restaurant chains more favorably than others in a post-pandemic world. No doubt, those with a strong off-premise presence will keep their momentum.

Those with strong liquidity will have an advantage over those that have taken on significant debt to weather the storm. Those that prioritized safety and benevolence and made sure their customers were taken care of will win over diners.

And then there are those that have beefed up their employee benefits to include a focus on mental health. 

The coronavirus has exacerbated an already fragile mental health synopsis in the U.S. Add in nationwide protests over the death of George Floyd, and we find ourselves on the verge of a health crisis. As the Washington Post reported recently, this crisis is driven by a “historic wave” of depression, substance abuse, post-traumatic stress disorder and suicide. 

This is particularly gutting news for the restaurant industry, which has long grappled with this issue. According to Mental Health America, the food and beverage industry is among the top three “unhealthiest” workplace industries, as judged according to workplace environment, stress and employee engagement.

Recognizing this fragility, more restaurant chains, from Papa John’s to McDonald’s, are adding programs and benefits that specifically address mental health. 

Chipotle started providing access to mental healthcare–including in-person, phone or virtual visits with a licensed counselor–for its more than 80,000 employees this year with an objective of “minimizing the effect of mental health in the workplace.”  

In a recent interview, Laurie Schalow, Chipotle’s chief corporate reputation officer, said employees were asking for mental health resources and by offering them, the company is better positioned moving forward. 

“We are hitting [mental health benefits] very hard right now, whether they address stress or pressure or drugs or alcohol, and we offer those benefits not just for employees but also for their families,” she said. 

Starbucks

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is also a bit of a pioneer here, providing employees and family members free access to 20 sessions a year with a mental health therapist or coach through Lyra Health. Starbucks also offers free access to meditation app Headspace. Like Chipotle, the company added these benefits because its employees were asking for them. To ramp up this initiative, the company hosted 12,000 store leaders in Chicago in September for a session on mental and emotional wellbeing.

“There, we committed to take a stand and break the stigma around mental health and provide even more partners and their families with the support they need. Starbucks has a long history of providing innovative benefits for our partners based on their feedback. With 1 in 5 adults experiencing some form of mental illness each year, we knew we could do much more, and we sought out partner input about what benefits would be most useful. We want to ensure every partner in every store feels supported and knows how and where to seek help for themselves and others,” said Ron Crawford, vice president of Global Benefits. 

So far, about 5,000 employees have participated in the company’s Mental Health Matters online forum and more than 68,000 employees are using the Headspace app. Crawford wouldn’t disclose if usage has increased during the COVID-19 crisis, but added that Starbucks will “remain committed to partners’ mental health and wellbeing at this time and beyond.”

Though the company is an industry leader in this area, Crawford said more work needs to be done. Starting this summer, Starbucks will launch dedicated training for all U.S. and Canada store managers in partnership with the National Council for Behavioral Health, inspired by Mental Health First Aid. The training will provide guidance and skills needed for store managers to provide initial resources that can support partners who may be experiencing a mental health issue, substance use problem or crisis. 

Noodles

NDLS
& Company has also added a number of benefits to assist its employees during the COVID-19 crisis through its Life@Noodles program, which already included perks like InstaPay and adoption assistance.

According to Sue Petersen, vice president of Human Resource, all Noodles team members and their families are eligible to contact UnitedHealthcare’s emotional support line to speak to a trained mental health specialist at no cost, whether enrolled in Noodles’ medical plan or not. Emotional support from trained mental health specialists is available 24-hours/7-days a week, along with referrals to community resources. 

Noodles also created a Career Counseling Hotline from scratch that is unique to the company, according to Petersen, as it is staffed by employees and available for all team members looking for assistance. 

“While these are temporary offerings for team members and their families to provide additional emotional and financial support during COVID-19, Noodles is also actively working on permanent mental health services for all team members,” Petersen said. 

Even industry giant McDonald’s is turning its attention to mental health, a potential game changer for the industry considering its scale. During a recent media call about the chain’s “Thank You Meals” promotion, Atlanta-based Owner/Operator Vicki Chancellor briefly touched on the company’s new mental health resources for employees. Included among them, a 24/7 Blue Cross Blue Shield nurses hotline and emotional support counseling sessions for employees and their families. According to a McDonald’s spokesperson, these benefits were inspired by franchisees.

We will continue to see these types of benefits added across the industry, and long after the emotional toll of the pandemic has eased a bit. At the other side of this crisis, restaurants will be fighting for labor. As the Wall Street Journal recently reported, for example, McDonald’s has 100,000 less employees since the crisis began. Despite historically high unemployment numbers, workers may be reluctant to return to the job because they’re afraid of getting sick, or because they’re collecting more in unemployment. 

Restaurants will be faced with a bit of a paradox, however. Adding such benefits comes at a cost and most operators have already shifted to deep cost cutting in an effort to weather this unprecedented storm. 

However, according to a report from the National Alliance of Healthcare Purchaser Coalitions, more mental healthcare coverage could yield a financial return of $4 for every $1 spent.

Then, of course, there’s a significant opportunity to reduce turnover–a major cost burden for restaurant operators. According to Schalow, Chipotle’s turnover numbers are going down because of its added benefits, which will position the chain well when it’s back to business as usual.  

“I think we’ll have a better selection in the marketplace when more people are available and more openings are there,” Schalow said.