The restaurant labor shortage isn’t getting any better, unfortunately, with new data pointing to a worsening trend for the food and beverage industry.
According to the results of a recent survey conducted by Expert Market in collaboration with Toast, 82% of restaurant businesses are currently hiring. This staggering majority illustrates a serious problem, with more businesses reporting that it was impacting operational efficiency more than anything else.
That’s not all we learned from the report, though, which is why we’ll take some time in this article to go over some additional findings and discuss ways to combat labor shortages.
Toast – The all-in-one platform built for restaurants of all sizes
Toast provides a single platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, operations, digital ordering and delivery, marketing and loyalty, and team management.
Restaurant Labor Shortage Continues
The study — titled Food & Beverage Industry Report 2024 — not only found that 82% of businesses are currently hiring, but it also found that experienced chefs (30%) are the most in-demand position, with dishwashers (12%) and cashiers (7%) representing the next most sought after roles.
More importantly, though, the data found that restaurant labor shortages (23%) are one of the most significant challenges faced by businesses, second only to increasing operating costs (27%).
As for why restaurant staff shortages are so prevalent, there are plenty of reasons that contribute to the ongoing problem. High turnover rates and seasonal demand fluctuations are playing their part of course, but this is nothing new to the F&B industry industry.
However, the general scarcity of labor at present is exacerbating the situation for many hospitality businesses, Expert Market says. The US Chamber of Commerce revealed in June 2024 that 1.7 million American workers are “missing” from the economy – and with less strenuous jobs available en masse, hospitality has become an even harder sell.
“The demanding nature of F&B roles, coupled with factors like long hours, weekend shifts, and comparatively low wages, complicates the attraction and retention of talent” – Expert Market
On top of that, the report notes that shifting demographics and changing job dynamics are generally changing the labor landscape, and the food & beverage industry is taking the brunt of the change.
Trend Likely to Persist in 2025
While 2024 has posed a serious problem when it comes to restaurant labor shortages, hope springs eternal that next year will be better. Unfortunately, the data shows that likely won’t be the case.
“[Staffing issues] are expected to worsen in the future. This trend likely arises from the persistent nature of staffing shortages within the US F&B industry” – Expert Market
The data from the report found that staffing shortages are expected to be the most significant operational risk in the next year, with 26% of respondents noting it as a concern. Even worse, that’s up 3% from last year, which shows that restaurant labor shortages are likely to continue in 2025.
How to Combat Restaurant Labor Shortages
From a day-to-day standpoint, staff shortages can grind restaurant operations to a halt. In fact, 59% of respondents said that it was the main problem impacting day-to-day efficiency, with equipment malfunctions representing the next biggest issue at only 27%.
As you can see, labor shortages are the key issue businesses are facing when it comes to operational efficiency. Source: Expert Market
Subsequently, the importance of addressing staffing issues can go a long way in setting your business up for success. Here are some tips from the report that may help you combat restaurant labor shortages:
- Employ effective recruitment strategies
- Be aware of intrinsic motivation and reward factors
- Implement more flexible workforce management strategies
Beyond that, making do with the staff you have is vital if you want to make it through your hiring processes. The best way to do that is by having the infrastructure set up that will allow your restaurant to run smoothly, even if you’re down a waiter or two on a busy night.
“Coordination and communication are even more important when staff shortages and turnover are impacting efficiency, and this is an area where we could see technology stepping in to help” – Expert Market
Luckily, there are all kinds of technology out there that is designed to streamline restaurant operations to make staff shortages feel less catastrophic. POS systems, in particular, can provide a wide range of functionalities that make taking orders, splitting checks, 86ing ingredients, and everything else you need to do at a restaurant more efficient for your team.
