7shifts Releases 2025 Restaurant Labor and Cost Profitability Report
The latest findings from 7shifts shed light on essential strategies for restaurants to manage payroll, balance labor costs, and boost profitability. Based on insights from over 500 industry professionals, this report uncovers key challenges shaping the restaurant landscape and provides actionable data and strategies to help operators navigate these hurdles effectively.
Key Insights from the Report:
1. Inflation Concerns: With food inflation ranking as a top worry for 52% of operators, labor costs follow closely behind.
2. Turnover Costs: Replacing staff can incur expenses of up to $1,056 for front-of-house positions and $1,491 for back-of-house roles.
3. Labor Cost Management: Rather than downsizing staff, 68% of restaurants are prioritizing cross-training as a top strategy for managing labor costs.
4. Technology Adoption: The use of operational tech tools like automated payroll and inventory systems is on the rise, with 50% of restaurants leveraging these tools to enhance efficiency.
CEO Jordan Boesch emphasizes the importance of investing in people as a sustainable business model for the future. By cross-training team members and embracing technology, restaurants can reduce labor costs, improve guest experiences, and drive overall profitability.
The report delves into strategies to mitigate turnover costs, tactics for safeguarding margins against inflation, and the role of technology and cross-training in enhancing operational efficiency across both front and back of house operations.
For a comprehensive look at the findings and to access the full report, visit www.7shifts.com.
About 7shifts:
Founded by Jordan Boesch in 2014, 7shifts was born out of the need to simplify team management challenges in the restaurant industry. With a focus on scheduling, payroll, and employee retention, this app offers industry-specific features to help over 50,000 restaurants save time, reduce errors, and optimize labor costs. Visit www.7shifts.com to learn more and sign up for free.
In conclusion, the 7shifts 2025 Restaurant Labor and Cost Profitability Report provides valuable insights and strategies for restaurant operators looking to navigate current industry challenges. By focusing on people, embracing technology, and implementing efficient labor cost management strategies, restaurants can build resilient business models for sustained success. Stay ahead of the curve by exploring the full report and taking proactive steps to enhance your restaurant’s performance.
