7shifts Releases Restaurant Labor Cost and Profitability Report to Help Restaurants Adapt to Industry Challenges, Including Inflation
The report reveals essential data and strategies to help restaurants control payroll, balance labor costs and increase profitability
7shifts, the all-in-one scheduling, payroll and tip management app for restaurant operators, released its Restaurant Labor and Cost Profitability Report for 2025. Based on the input of more than 500 restaurant professionals — including owner-operators, general and assistant managers — the findings identify key challenges currently shaping the industry and provides data and strategies restaurant operators need to overcome current industry challenges including balancing labor costs, combating inflation and driving profitability.
“When it comes to controlling costs, our data has confirmed that successful restaurants are choosing to invest in their people rather than just cutbacks,” said Jordan Boesch, CEO at 7shifts. “These restaurants are building sustainable business models for the future. Savvy operators have realized that cross-training team members and leveraging technology reduces labor costs and enhances the overall guest experience — a win-win across the board.”
The report explores strategies to mitigate the high cost of turnover, tactics operators are leveraging to protect their margins in the face of rising inflation, and how restaurants are using technology and cross-training to improve efficiency across both front- and back-of-house operations.
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The report also uncovered the following key insights:
- Inflation: Food inflation is a top concern for 52% of operators with labor costs ranking a close second.
- Turnover Costs: The expense of replacing staff can be as much as $1,056 per FOH position and $1,491 per BOH position.
- Labor Cost Management: Instead of cutting staff, 68% of restaurants have embraced cross-training as the top labor cost management strategy.
- Technology: Operational tech adoption is growing, with 50% of restaurants using automated payroll and inventory tools to improve efficiency and operators are optimistic about technology’s role in the future of the industry.
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.
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