7shifts Releases Restaurant Workforce Report, Revealing Complete Picture of Industry Trends

News provided by

Nov 19, 2024, 08:00 ET

Compelling insights guide restaurants in optimizing operations and achieving success in 2025

TORONTO, Nov. 19, 2024 /PRNewswire/ -- 7shifts, the all-in-one scheduling, payroll, and tip management app for restaurant operators, released its annual Restaurant Workforce Report for 2025. Based on a survey of more than 900 restaurant managers, the research uncovers important findings about industry growth, hiring challenges, employee engagement, pressing financial considerations, and technology adoption and usage. A highlight from the report shows that the industry grew this year, with quick-serve restaurant (QSR) dining up by 4%, offsetting losses in the full-service sector.

In addition, the report found that the restaurant industry grew overall by 1.72%, adding 210,300 jobs over the year. However, recruiting and retention remain top concerns for employers, with 65% of respondents describing the current labor market as "tight" or "very tight."

"Our previous research shows that flexibility, camaraderie, and strong management are essential for job satisfaction and retention in the restaurant industry," says Jordan Boesch, CEO at 7shifts. "Flexible hours help employees balance their lives, and an environment that fosters camaraderie keeps teams engaged. As always, effective management was shown to be key, with 45% of employees citing poor leadership as a reason for leaving. Moving forward into 2025, it will be crucial for restaurants to utilize the right strategies and tools that prioritizes satisfaction, connection, and supportive leadership."

In addition to the findings already cited, this year's report revealed the following:

Employee Centricity: Benefits like PTO and positive work environments are priorities, but 69% of restaurants don't offer important services like childcare or mental health support. The research also found that giving feedback is vital for staff engagement, as employees want to know how they're performing and how they can improve.
Tipping Models: Despite ongoing wage discussions, 63% of restaurants reported no changes to their tipping practices in 2024.
Rising Wages: Base wages increased by 4% to $14.20/hour, with restaurants offering benefits like 401(k) plans to meet employee expectations and retain staff.
Regional Wage Disparities: While wages are up nationwide, the Pacific Northwest and Northern California lead with rates above $20/hour, while the Southeast and Midwest lag at $15/hour.
Tech Adoption: 65% of restaurants adopted new technology to manage labor, though 27% still use manual scheduling. Technology is critical for efficiency and workforce management.

"I feel encouraged about the coming year; I feel that employers are doing a better job of understanding the needs of their employees, and they are making the extra effort to provide those things," said Jana Domanico, senior HR operations manager at Boka Restaurant Group. "It is becoming increasingly difficult to say, 'Well, we have always done things this way,' and to me, this is a good thing. We have to be adaptable and open to employee feedback. Employees can now shape a more sustainable future for themselves in hospitality."

To learn more and access the full report, visit: https://www.7shifts.com/restaurant-workforce-report.

About 7shifts
Born in the back office of a sandwich shop, 7shifts was founded by Jordan Boesch in 2014 with the goal of building simple solutions to solve even the most complex team management challenges. 7shifts is a scheduling, payroll, and employee retention app designed to improve performance for restaurants. The easy-to-use app offers industry-specific features that help more than 50,000 restaurants save time, reduce errors, and keep labor costs in check. To learn more, or to sign up for free, visit www.7shifts.com.

SOURCE 7shifts