How To Optimize Your Restaurant's Labor Force for Success

The restaurant industry has always been dynamic, but this year presents a unique set of challenges and opportunities when it comes to labor. Rising wages, shifting demographics, and evolving guest expectations are reshaping how restaurants hire, train, and retain employees. As a restaurant owner, optimizing your labor force isn't just about cutting costs — it's about building a sustainable, high-performing team that supports your brand's long-term success.

Key labor challenges in 2025 

Labor has been a top concern for restaurant operators for years, and the challenges continue to mount. 

• Rising labor costs: Wages have increased by an average of 30 percent over the past four years, driven by legislative changes and heightened competition for talent. 
• Worker shortages: Back-of-house positions remain difficult to fill as demographic shifts and work preferences evolve. 
• Competitive hiring market: Restaurants are competing with a wide range of employers for the same labor pool, including those outside the food service industry. 
• Changing immigration policies: Political and regulatory changes could significantly impact a workforce that has historically relied on immigrants, particularly in the kitchen.

Leveraging technology to streamline hiring and training 

One of the biggest hurdles in hiring today is simply getting candidates to show up. Many restaurants experience high no-show rates for interviews, leading to wasted time and resources. Implementing hiring software like WorkStream automates the process, sending reminders, scheduling interviews, and making it easier for managers to stay organized.

Once hired, employees need structured onboarding.

A Learning Management System (LMS) can provide video training, quizzes, and interactive modules to ensure consistency in training across multiple locations. Employees who feel properly trained are more likely to stay engaged and less likely to become frustrated in their roles.

Building a strong culture of employee development and retention 

Employee retention is often overlooked when discussing labor costs. Restaurants that invest in their people through training, recognition, and career development see lower turnover and higher productivity.

At Biscuit Belly, we prioritize employee appreciation and recognition. Managers are given budgets to reward their teams in ways that resonate most with their staff, from team outings to holiday competitions. After five years, a general manager becomes an operating partner with their title and name placed on the front door of their restaurant and the ability to earn a greater bonus.

Data-driven labor optimization 

Restaurants generate vast amounts of data and leveraging it correctly can lead to significant labor efficiencies. Tracking customer traffic patterns helps managers schedule shifts more effectively, ensuring the restaurant is adequately staffed without over-scheduling.

Scheduling platforms like Restaurant365 allow managers to forecast labor needs based on historical sales data, preventing unnecessary labor costs while maintaining service quality.

Getting creative with scheduling and operations 

A flexible workforce is a more productive workforce. Restaurants should rethink traditional scheduling models to better align with employee preferences and operational needs.

• Offering flex schedules: Allowing employees to work part-time, split shifts, or weekends only can attract a wider talent pool, particularly working parents or students.
• Cross-training staff: Employees who are trained in multiple roles can fill in gaps when needed, reducing reliance on last-minute hiring.
• Reevaluating operating hours: Do you need to be open all day? Reducing hours in slow periods can significantly cut labor costs without affecting profitability.

Additionally, restaurant operators should examine prep work efficiencies. Many suppliers now offer pre-chopped vegetables and pre-portioned ingredients that reduce kitchen labor. While some may argue that scratch cooking is ideal, balancing efficiency with cost is essential in today's labor market.

Balancing automation with hospitality 

As technology advances, more restaurants are turning to automation, from self-ordering kiosks to robotic fry cooks. While this approach works well for some concepts, hospitality-driven brands must strike a balance between automation and personal service. Biscuit Belly prioritizes human interaction and have decided against kiosks because the guest experience is a core part of our brand. For high-volume, transactional restaurants, automation may be key to reducing labor costs and improving efficiency. For experience-driven brands, retaining the human touch remains essential.

The future of restaurant labor 

The restaurant labor landscape will continue to evolve, and owners who proactively adapt will have a competitive edge. Here's where operators should focus their efforts:

• Invest in hiring and training technology to streamline recruitment and onboarding. 
• Create a strong culture of recognition and development to retain employees. 
• Leverage data to optimize scheduling and reduce inefficiencies. 
• Find cost-saving measures in prep work, operating hours, and menu design. 
• Balance automation with human connection to align with brand identity.

Optimizing a restaurant's labor force isn't just about cutting costs — it's about building an efficient, engaged team that delivers an exceptional guest experience. By embracing new strategies and leveraging technology, restaurant owners can position themselves for success in 2025 and beyond.

Chad Coulter is the CEO of Biscuit Belly.