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Problem#4: Putting too much trust in the student employees?

Make sure to know what kind of person he is hiring, and only hire people that show enthusiasm and responsibility.

Have meetings with employees to enforce strict policies about work, and making sure everyone follows those rules.

He might be putting too much trust, but it is partly their fault for being irresponsible during work.

Problem #2: Student employee arguing with a customer

Find the cause of the argument and discussing it with the employee to avoid further conflicts.

Stay calm and take place of the student, and try to resolve the conflict with less tension.

Problem #3: Student employees on their phone

Have all the employees store their phones away, and only access them during emergencies or their break time.

Enforce proper and strict rules on having cellphones out during work.

Problem #1: Messy dining area

Provide proper cleaning equipment, and prompt them to regularly check if cleaning is needed routinely.

Tell one of the employees to clean the dining area as quick as possible.