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A new year is creeping up on us again, bringing fresh opportunities—and challenges—for restaurant operators. With so much already on your year-end plates, how can you find the time to lay the groundwork for team and business success in 2025?
Whether the business has just staffed up for the holidays or experiences their busy period at a different time of the year, investing in seasonal talent is a crucial part of labor strategy year-round. Recent data shows that hourly workers’ top factors for loving their job are their coworkers and flexible schedules.
Restaurant operators are dealing with shrinking margins, labor shortages, and higher guest expectations than ever before. For years, restaurant technology has been about speed and efficiency—faster orders, better scheduling, streamlined payments. This isn’t about replacing people with machines.
Restaurants Embrace Technology Today, some of the pressure of labor shortages in the restaurant industry is mitigated by technology. With the right platform, restaurants can reduce the time managers spend scheduling and performing other labor-management duties, including payroll and tip distribution.
Learn how to track and reduce food waste, optimize labor costs with smart scheduling, make data-driven decisions with regular P&L reviews, and manage fixed and variable costs efficiently. Running a profitable restaurant requires more than great food and service.
Restaurants must navigate an intricate web of federal and local compliance parameters, from food and workplace safety regulations, to labor laws, to environmental concerns – and when the consequences for violations are so severe, remaining compliant can feel like walking through a minefield.
Recruiting and Retention Remain a Struggle In the research report, 65 percent of respondents described the current labor market as “tight” or “very tight.” It’s also important to recognize that many restaurants are making their jobs harder than necessary by continuing to rely on manual scheduling tools.
Experts have deemed recovery from the pandemic “complete ,” but a new set of challenges has emerged for restaurants: labor shortages, disrupted supply chains, and extreme weather. Negotiate Strategically : Don't be afraid to negotiate on price, payment terms, and delivery schedules. percent annually.
Real-time data helps with laborscheduling, adjusting menu items, reducing waste and improving profitability. In the competitive restaurant industry, data is crucial for controlling costs and boosting efficiency. Learn how harnessing data enables better decision-making and enhances operational success.
However, new uncertainties—from economic pressures to labor shortages—underline the importance of robust risk management strategies as the linchpin for future success. Additionally, labor shortages remain a critical pain point, driving up wages across the industry. Yet, the road ahead is not without its bumps.
There are not enough workers, and for an industry with a long history of high turnover rates and seasonal fluctuations such a long running labor shortage could quickly cause things to spiral out of control. Rather than just another hiring season, or a lull, labor-intensive industries such as restaurants face a permanent labor shortage.
As labor costs rise and compliance becomes trickier to navigate, keeping high-performing employees on staff will prove a vital cost-saving measure. Flexible scheduling is a highly effective method of combating burnout and disengagement. Strategy Flexible workplaces are built on future-focused, employee-centric labor strategies.
According to the latest 7shifts 2025 Restaurant Labor and Cost Profitability Report , labor costs reaching up to 30 percent of revenue and food inflation ranked as the top concern by 52 percent of restaurant operators in 2025, therefore finding ways to reduce expenses without compromising quality has never been more critical.
AI technology is helping restaurateurs tackle the growing amount of labor challenges with machine learning solutions. In this whitepaper from Lineup.ai, learn how industry leaders are taking advantage of AI to build better communication, scheduling models, and boost their bottom lines. But nothing could be further from the truth.
Leadership and management are terms often used interchangeably, but they’re far from the same. Each requires distinct skills and mindsets that play critical roles in a restaurant’s success. The challenge—and opportunity—lies in blending these roles to fully engage your team and propel your business forward.
Margins shrank, labor shortages intensified, and guest expectations rose. With the right tools, operators can manage staff schedules, streamline kitchen communication, monitor inventory levels, and analyze sales trends all in one place. Twenty years ago, hospitality looked very different. Real-time insights?
Restaurants, hotels,and otherhospitalityindustry businesses continue to battle a tight labor market. Toattractnot only enough employees butalsoengaged and productive ones, itsimportantto offer benefits thatmeet them where they are.
Problem When the original Bobe’s Pizza launched in the ‘50s, writing schedules on pen and paper was the only option. Scheduling so many employees across different locations was complex and unmanageable. It took too much time to not only create schedules but also find coverage and keep track of everyone’s availability.
Compliance support helps navigate labor laws and avoid costly fines. Automated HR management streamlines onboarding, scheduling, and performance tracking, freeing you to focus on delivering excellent dining experiences. Running a restaurant involves juggling numerous tasks, but payroll and HR shouldn’t add to the stress.
While these cases may be on the more extreme side, restaurant owners have to be careful not to fall into any traps when it comes to payroll, as even accidental violations could still yield big penalties. Even if these were unintentional, this individual would still be subject to fines and a loss of trust with staff.
AI-driven tools can help optimize everything from laborscheduling to inventory management, reducing waste and improving margins. Automation – Investing in smart kitchen equipment and AI-driven scheduling tools can help reduce labor costs and improve efficiency.
Every industry felt the impact of the labor crunch during the pandemic and now, as recovery efforts are underway, businesses are struggling to recover employees quickly enough to meet the rise in demand. Bureau of Labor statistics. However, consumer demand is only increasing. But not all hope is lost. Addressing Staff Concerns.
When we talk about the “restaurant of the future,” labor compliance isn’t exactly the flashiest or most exciting topic to include—certainly not when juxtaposed with salad-making robots and personalized digital menus. Restaurants face a multifaceted compliance situation.
Too many restaurants, even enterprise brands, are still using manual processes for various areas of the business, such as inventory, scheduling, and reporting. These time-consuming tasks not only burn labor hours when you can least afford it but losing track of your inventory will eat away your margins faster than you realize.
With only half of restaurants using advanced tools like scheduling software and performance tracking, there is a clear opportunity for growth. Modern Restaurant Management (MRM) magazine asked restaurant industry experts for their views on what trends and challenges owners and operators can expect to see in 2025.
In this article, you will learn: The five most important restaurant costs to track and manage Easy strategies for controlling food costs and labor costs Tactics to save money without hurting your guest experience Lets start with the big picture and learn where your money is actually going.
Scheduling employees is one of the most time-intensive tasks for restaurant managers. Additionally, they have to remember how this demand aligns with employee skills and availability, before they begin creating shift schedules – often using pen and paper or an Excel spreadsheet.
Restaurants prepare ingredients and schedule staff based on anticipated guest numbers, and when diners fail to arrive, this precision quickly unravels into wasted food and unnecessary labor expenses. billion in annual revenue losses, according to Zonal and CGA's GO Technology report.
While careful labor management has always been an important part of controlling prime costs in the restaurant industry, operators should be looking toward better ways to manage labor costs with competition for labor increasing and a potential minimum wage increase on the horizon. Smart Scheduling Assistance.
However, other burnout remedies, particularly rethinking scheduling, can be implemented much more quickly — even in time to make the most of the 2021 holiday season. Try Self-Scheduling. Flexible self-scheduling is a time management approach that’s built by managers and employees.
A strong POS system can streamline operations, inventory and menu management, assist with staffing shortages and scheduling conflicts, as well as assist with sorting through data and sales patterns to help personalize marketing campaigns in a new location. Tracking inventory can prevent unnecessary and costly food waste.
Labor Department have sparked sharp contrasts among restaurants and industry labor advocates alike. This will enable operators to establish non-traditional gratuity pools that can now be used to create higher wages for back-house staff such as line cooks, dishwashers and janitorial without increasing their operational labor spend.
LaborScheduling. Leveraging a laborscheduling tool with contact tracing takes the guesswork out of the equation. Some tools can even make scheduling recommendations for working in “pods” to minimize the number of workers who come into contact with each other altogether.
Are labor costs too high? Look into AI-driven scheduling and automation tools. Are you aiming to speed up service, cut labor costs, or increase online sales? What was once a gradual process turned into a rapid transformation, permanently reshaping how restaurants operate and interact with customers.
It’s no secret that restaurants with more than one location depend on standardization to thrive. A customer in Miami should bite into the same perfectly seasoned burger that delights diners in Seattle. Reliable experiences build brand loyalty, and systemic processes lead to reliable profit margins.
Finding a balance between controlling labor costs and attracting and retaining seasonal workers can be a challenge, but with a little ingenuity and flexibility, it is possible. Rethink Scheduling. Create an Employee-First Environment. An employee-first workplace retains more staff and attracts more new workers. Recognition.
Labor costs continue to rise. Notably, 92 percent of respondents reported increasing staff wages in 2024, up from 84 percent in 2023, reflecting the ongoing rising cost of labor. "While encouraging signs exist, the industry continues to navigate an increasingly complex landscape.
We (those who have invested decades in the business already) may complain about the current labor environment and question the level of commitment from a younger pool of candidates but I have rarely heard anyone attempt to define how it will all wash out. What is the projected profile of cooks and chefs moving forward.
From unpredictable schedules to being denied time off, shift workers are frustrated and exhausted. Worldwide, 40 percent of job candidates rank schedule flexibility as one of their top factors in career decisions. Pen-and paper schedules are behind us – or at least you’d think. Reduce Wage Costs.
GMs are used to making the final call on scheduling, hiring, P&L, and guest experience. GMs typically focus on operational execution, such as managing labor, food, and staffing costs. Not necessarily. Many top-performing GMs struggle in MUL roles or, worse, fail altogether. The result? Successful GMs excel at hands-on leadership.
In this article, youll learn: How to break down your operating costs into fixed, variable, and semi-variable Smart ways to lower labor and food costs without sacrificing customer service Where hidden expenses are hiding in your tech stackand how to fix it Lets discover where your money is going, and how to take back control.
All of that on top of the everyday tasks from scheduling to payroll to reporting can catch up to you. Restaurant Employee Scheduling Software. Labor-Management Reporting. No more paper schedules up on the board with scribbles that get sent around through text messages. Manager Log Books. Time Clocking. Payroll Automation.
They tell you how much money your restaurant keeps after paying for everything from food costs to labor expenses to utilities and rent. It factors in all your operating expenses, like labor, rent, insurance, equipment repairs, marketing, and more. came to $35,000, and your operating expenses (labor, rent, insurance, etc.)
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