Restaurant Workforce Trends and Challenges Uncovered in 7shifts' Annual Report
The findings are based on a survey involving over 900 restaurant managers.
The latest Restaurant Workforce Report for 2025 released by 7shifts, a scheduling, payroll, and tip management app for restaurants, offers key insights into the industry's trends and challenges. The findings are based on a survey involving over 900 restaurant managers.
The report reveals that the quick-serve restaurant (QSR) sector saw growth of 4% this year, helping offset losses in the full-service sector. Overall, the restaurant industry grew by 1.72%, adding 210,300 jobs. However, the report also highlights that recruitment and retention are major issues, with 65% of respondents describing the labor market as "tight" or "very tight."
According to Jordan Boesch, CEO of 7shifts, job satisfaction and retention in the industry rely heavily on flexible working hours, strong camaraderie, and effective leadership. The report confirmed that 45% of employees cited poor leadership as a reason for leaving their jobs.
The report also revealed other vital findings:
- Employee-Centricity: Despite the importance of benefits like Paid Time Off (PTO) and positive work environments, 69% of restaurants do not offer services like childcare or mental health support.
- Tipping Models: Despite debates around wages, 63% of restaurants reported no changes to their tipping practices in 2024.
- Rising Wages: Base wages rose by 4% to an average of $14.20 per hour, with benefits like 401(k) plans offered to meet employee expectations and retain staff.
- Regional Wage Disparities: Wages increased nationwide, but the Pacific Northwest and Northern California lead with wages above $20 per hour, while the Southeast and Midwest lag at $15 per hour.
- Tech Adoption: 65% of restaurants adopted new technology for labor management, but 27% still use manual scheduling.
The full report can be accessed at www.7shifts.com/restaurant-workforce-report.
