The 2020 Restaurant Labor Management Trends Study Released By 7shifts

Submitted Market Research

7shifts concludes that the statistics point to an industry-wide need for more educational resources and technology solutions to help reduce labor costs and employee turnover through staff engagement.

7shifts, the leading labor management platform for restaurants, just released a comprehensive study covering key insights and statistics about the state of the restaurant labor management industry and where it’s headed. The survey was conducted with over 1,000 restaurant managers, owners, and executives across North America and includes the most important restaurant management trends, direct feedback from restaurateurs, and tips from 7shifts on how the industry can adapt to the changes.

In terms of technology:

  • 42% of restaurateurs don’t plan on adding or changing any technology in their restaurant
  • Nearly 20% of restaurateurs plan on updating their POS system in 2020
  • 18% of restaurateurs will search for new marketing technology in 2020
  • 12% of restaurateurs plan on exploring new third-party delivery technology in 2020
  • 65% of restaurant employees are very satisfied with their workplace technology
  • Over 60% of restaurant staff want to communicate with managers through text

The full study can be accessed here (registration required).

Among the other key findings, 60% of restaurants saw their labor costs increase in 2019 and 50% of respondents expect their labor costs to rise in 2020 and beyond. 7shifts concludes that the statistics point to an industry-wide need for more educational resources and technology solutions to help reduce labor costs and employee turnover through staff engagement.

A few other key statistics from the study below:

  • The largest percentage of respondents (nearly 46%) said they would be investing in team building activities in 2020 in order to engage and retain employees, compared to other strategies like competitive pay and professional development that would potentially increase labor costs.
  • 28% of survey participants said that high labor costs were their biggest restaurant challenge of 2019, with 33% of restaurant owner respondents predicting that high labor costs will remain their biggest hurdle in 2020.
  • 64% of survey respondents said that they will increase menu prices in order to counter minimum wage increases due to new, local wage laws. Even though menu prices may increase, new food trends will bring new menu items, with 10% of participants who said that they’ll be focusing on vegan and plant-based options in 2020.

The study also includes open-ended insights from respondents that give an inside look into how restaurateurs are thinking about the future of their business, and the restaurant industry, as a whole. “My advice for 2020: make sure to take into account the rising cost of living and minimum wage increase for tipped employees,” one survey participant noted.

7shifts’ labor management software improves the operations of restaurants of all sizes by simplifying team scheduling, labor budgeting, communication, and compliance, freeing up time for managers to serve their customers and focus on providing exceptional guest experiences. 7shifts releases this study following the official announcement of their first U.S. office opening and exponential growth following their latest Series A-1 financing. As the company continues to expand, it will produce more studies and surveys to help educate and inform restaurateurs on labor management issues facing the industry.

7shifts is used by over 13,000 restaurants across North America and is providing over 350,000 restaurant workers with an engaging way to manage their work schedules. With a vision of simplifying labor management, one shift at time, the company hints at more exciting rollouts to better serve the restaurant industry in 2020 and beyond.

“We’re really excited about this study, and it’s one we plan on doing every year,” said 7shifts CEO, Jordan Boesch. “7shifts was born in restaurants, so we understand the frustrations of trying to keep up with the ever-evolving nature of industry. We’re here to be a key partner for restaurateurs, so we’ll continue to listen to the industry’s needs and produce more resources that empower restaurants to grow and prosper.”

The full study can be accessed here (registration required).