Dive Brief:
- Only 49% of restaurant operators said they plan to grow their staffing levels this year, down from 60% in 2025, according to Toast’s Voice of the Restaurant Industry Survey.
- However, 48% said they plan to keep the same number of staff, an increase of 10 points compared to last year, per the survey of 676 operators.
- This shift indicates that retaining talent, rather than hiring new workers, is becoming more important for the restaurant industry as key measures of labor turnover have stabilized.
Dive Insight:
The unemployment rate in accommodation and food service has hovered between 5% and 7% in recent months, reaching a low of 5.6% in July, suggesting that restaurants aren’t reducing their staff counts, unlike other industries.
Restaurant operators listed hiring as their second biggest challenge after inflation, and most (51%) are looking to increase staff efficiency and speed of service if labor challenges persist, while 49% want to increase retention.
However, average weekly hours have fallen compared to pre-pandemic levels, suggesting that operators are turning to more part-time labor to fill in scheduling gaps. Only 3% surveyed by Toast said they would decrease their staffing levels.
The number of quits has also trended down industrywide, relative to the early-post COVID period. Many operators also said they are working to improve shift scheduling (45%) and implement technology to reduce staff and guest touchpoints (35%). Chili’s, for example, has been improving its labor scheduling with properly written schedules that help make tasks easier and can help restaurants take on more traffic. Chipotle is rolling out a high-efficiency equipment package to improve labor efficiency and free up crew members to focus on hospitality.
“Restaurant operators polled say they are focused on investing in their team and the workflows they use to manage labor, rather than cutting things like the size of the menu or the number of tables available,” Toast said in its report.
Retention can also boost profitability as restaurants spend less on the cost of hiring and training, and experienced workers are likely more efficient. Many chains, including Chipotle, Dutch Bros, Fogo de Chão and Cava, typically promote managerial candidates from within allowing employees to grow their careers and leadership skills, prepping them to take on new stores and responsibilities. Guests also recognize and build relationships with servers, which can improve frequency.
While many operators aren’t planning to increase their staffing levels, several major chains are boosting their employee counts as part of their growth strategies. Cava plans to hire over 2,000 employees as part of its push to open 75 units this year. Burger King said in April that it would work with franchisees to bring on 60,000 workers as part of its ongoing turnaround plan.
