Post-pandemic labour shortages have plagued the industry, continuing to pose a challenge to restaurateurs. From hiring to retention, many operators are struggling to meet their targets while delivering on diner expectations. A recent study by 7Shifts reveals the costs and challenges that operators are facing in today’s marketplace, including food inflation (listed as the top concern by 86 per cent of operators) and labour costs (ranked first by 31 per cent).

Turnover is expensive

On top of rising wages and increased food costs, hiring and training are pricy, costing operators an average of $1,056 per front-of-house position, $1,491 for a back-of-house replacement, and $2,611 per position per management position. With frequent turnover, these costs could have a significant impact on the bottom line.

Data is crucial

Staying within your labour budget is a vital part of your financial success, but only 36 per cent of restaurants are hitting their labour cost targets, while 44 per cent spend more than planned. Using today’s tools to track and manage your labour budget can allow operators to assess real-time spending and make quick adjustments. For restaurateurs finding success in this area, 76 per cent attribute this success to POS and software analytics, along with historical data comparison. Studying the numbers and maximizing the insights available make it possible for operators to tweak their processes to improve results.

Getting creative can help

Alternate strategies are being used by many restaurants to try and manage labour costs efficiently. One way, being practiced by about 68 per cent of restaurants, is cross-training their staff to try and mitigate turnover, creating teams that can switch between different tasks when needed. Alternatively, 45 per cent of restaurants are adjusting the number of staff hours they schedule, 41 per cent are working to improve operations, and 39 per cent are reducing the size of their staff.

Look ahead to success

Rather than focusing on the doom and gloom, many operators are focusing on growth, with 63 per cent raising menu prices, 45 per cent training staff to upsell, 37 per cent finding new revenue streams, 34 per cent simplifying their menus, and 29 per cent focusing on items that make a higher profit. With 49 per cent of operators expressing optimism about technology helping to reduce labour costs, they are investing in tools to help with everything from automated payroll (52 per cent) to staff scheduling (49 per cent), and inventory management (51 per cent), among others.

At the end of the day, the customer experience is paramount. From staffing to technology, operators need to find ways to cut costs, see growth, and provide a memorable experience for their guests.