#Canada #Toronto #7shifts #restaurant management #Labor Costs

7shifts Unveils Report on Restaurant Labor Costs and Profitability

In a move to assist the restaurant industry grappling with ongoing economic pressures, 7shifts has released its 2025 Restaurant Labor and Cost Profitability Report. This pivotal document compiles insights from over 500 restaurant professionals, including owners, general managers, and assistant managers, to highlight prevailing challenges and effective strategies in today’s market.

According to Jordan Boesch, CEO of 7shifts, the findings reveal that successful restaurant operators are focusing on investing in their workforce rather than merely trimming expenses. “Our data confirms that restaurants prioritizing their people are setting themselves up for sustainable success in the future,” Boesch asserts. This approach not only boosts employee morale but also enhances the overall customer experience. Restaurants that are cross-training their staff and effectively utilizing technology are reported to see reductions in labor costs while simultaneously improving service quality.

Key Insights from the Report

The report provides several significant insights relevant to restaurant operators:

1. Inflation Concerns: A staggering 52% of operators identify food inflation as their primary worry, while rising labor costs are a close second. This insight underscores the need for restaurants to strategize effectively in order to maintain profitability in the face of increased expenses.

2. Turnover Costs: The financial burden of staff turnover can be considerable, amounting to approximately $1,056 for each Front of House (FOH) position and around $1,491 for Back of House (BOH) roles. Addressing staff retention is therefore paramount for operational stability.

3. Labor Cost Management Techniques: Instead of resorting to layoffs, 68% of the surveyed restaurants are opting for cross-training strategies as a means of controlling labor-related expenses. This proactive measure not only saves costs but also offers employees growth opportunities within the organization.

4. Technology Integration: The report highlights a noticeable increase in operational technology adoption, with 50% of restaurants utilizing automated payroll and inventory management solutions. This trend reflects operators’ optimism regarding technological advancements, which they believe will play a critical role in future industry transformations.

The Importance of Adaptation

As inflation continues to shape the economic landscape, restaurant operators are encouraged to adopt innovative approaches detailed in the report to safeguard their profits and manage labor costs efficiently. By leveraging technology and fostering a skilled workforce through cross-training, restaurants can not only weather the ongoing challenges but also position themselves for future growth.

To access the full Restaurant Labor and Cost Profitability Report, visit www.7shifts.com. This comprehensive report is an essential resource for restaurant professionals aiming to enhance operational efficiency and profitability.

About 7shifts

Founded by Jordan Boesch in 2014, 7shifts originated from a sandwich shop’s back office, aimed at addressing complex team management challenges within the restaurant sector. Today, it is recognized as an essential scheduling and payroll app, designed specifically for restaurant operators. With over 50,000 restaurants using its platform, 7shifts provides essential tools to streamline operations, reduce errors, and monitor labor costs effectively. For more information or to sign up for free, please visit www.7shifts.com.