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In this edition, we’re diving into 7shifts’ 2025 Restaurant Management Report to learn all about where the industry is heading next year. Running a restaurant takes passion and dedication, and the key to success lies in the people behind it.
But running a profitable restaurant isn’t without its hurdles, especially in today’s competitive market. In this report, we’ve surveyed nearly 1,000 restaurant managers to uncover the challenges they faced over the past year and the strategies they used to overcome them.
From increasing wages to tech innovations and retention tactics, this report offers valuable insights into the changing dynamics of restaurant teams.
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Retaining employees in a (very) tight labor market |
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How much have restaurant wages gone up? |
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Adopting new restaurant tech |
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Walking into the New Year doesn’t need to feel like walking into a new world. Read on to see what the industry’s facing in 2025.
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BY THE NUMBERS
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Where are we at, growth-wise? In 2024, the restaurant industry grew by 1.72% with 210,300 added jobs. While full-service restaurants tend to require more support staff, the growth was driven by quick-service restaurants (QSRs).
From drive-thrus to app-based ordering, consumer trends are evolving. It’s no surprise that QSRs are quick to evolve with it.
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REALLY BIG INSIGHT #1
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65%
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of operators describe their restaurant labor market as ‘Tight’ or ‘Very Tight’
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Growth is good. But it isn’t possible without the right people on the job.
Hiring remains difficult for restaurant operators with 33% calling out recruiting as their biggest challenge. And once hires are made, the troubles don’t just end there––27% pointed to retaining their current employees.
👉 70% opted for flexible scheduling
👉 53% increased wages
👉 36% added employee recognition programs
👉 26% offered career development opportunities
👉 21% improved benefits
👉 17% made changes to tip distribution
Danielle Hester, Director of Team Experience at gusto!, shares her advice:
“We’re not a typical organization; we prioritize our values, pushing core tenets down to the shop level. We’ve started measuring employee development and performance based on those values. Since we began aligning our operations with our company values, I’ve noticed a positive impact on turnover rates.”
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REALLY BIG INSIGHT #2
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4%
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is how much median base wages increased
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With the cost of living on the rise, restaurants are paying their staff more and more. Median base wages went from $13.64 to $14.20 per hour as most operators say they increased wages by 1 to 5%.
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Let’s not forget that employee compensation isn’t just limited to wages––extended benefits like paid time off (PTO) and retirement savings have been added to the mix. Total compensation saw a similar bump with the median being $18.16 per hour.
Despite all the upward trends, wage disparity across different regions still remain. Restaurant workers in high-cost-of-living cities like Seattle and San Francisco earned an average of $25.34 per hour. Those in the Southeast and Midwest, on the other hand, earned around $15.
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PRESENTED BY
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Simplify your tip processes this holiday season
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With 7shifts Tip Management, you can centralize your team’s labor and tips in one platform. Set custom distribution rules and relax while we automatically calculate your tips accurately in real time, every time. Book a consult to learn more and see it in action!
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REALLY BIG INSIGHT #3
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65%
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of restaurants adopted new technology to manage labor challenges
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Adopting new technology offers restaurants the ability to improve efficiency and manage labor challenges. Payroll and HR software, training platforms, and scheduling software are among the most popular new tools for operators.
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LOOKING AHEAD
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As the New Year approaches, here are some key takeaways from our Restaurant Workforce Management Report to help you stay ahead:
🔎 Comprehensive benefits: As the labor market tightens, restaurants that offer extended benefits, such as PTO, childcare, and mental health support, will stand out among others.
🔎 Technological advancements: With technological advancements comes room to evolve––those who invest in the right tools will improve efficiency and their ability to retain top talent.
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Get the rest of the report, free
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This was just the appetizer! Dive deeper into economic trends, tipping practices, and more by accessing the full report. It’s totally free!
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À LA CARTE
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🗓 Read: How to Create the Perfect Holiday Work Schedule
A proper holiday schedule can make or break your team’s morale. Don’t be a grinch and forget to take these key things into account.
🤝 Read: 5 Employee Appreciation Ideas
Employee Appreciation Day may be in March, but year-end is the perfect time to celebrate your team for all their hard work. Check out these ideas.
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