10.9.2025
Restaurant payroll remains one of the most time-consuming and error-prone aspects of operations, according to The Restaurant Payroll Benchmark: A Framework for Growth, a new industry study released by 7shifts, the restaurant scheduling and payroll platform. Drawing on insights from more than 500 restaurant professionals, the report identifies persistent inefficiencies that are eroding profits and morale across the sector while outlining a clear roadmap toward modern, connected payroll management.
The research reveals that many restaurants are still mired in outdated systems and manual workflows despite major advances in labor management technology. According to 7shifts’ data:
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67% of restaurant operators spend more than 100 hours per year processing payroll manually.
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31% still manually enter each employee’s hours into their payroll system.
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32% continue to track time on paper, introducing accuracy and compliance risks.
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26% cite payroll mistakes and corrections as a leading source of frustration among staff.
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46% rely on basic tools and manual oversight to maintain compliance with labor laws.
Beyond identifying widespread inefficiencies, the report quantifies the performance gains achieved by restaurants that have adopted modern, integrated payroll systems. Operators at the “Strategic” stage report faster processing times, fewer errors, and measurable labor savings.
For example, Chef Kevin Yu of 2d Restaurant reports saving up to five hours per week on payroll, plus an additional three to four hours on tip pooling. Joanna Heart, owner of The Palm Coffee Bar, reduced payroll processing from 90 minutes to 10 minutes. And Josh Bishop, owner of Wildfire and Fork & Fire, decreased labor costs by 20% after connecting scheduling, time tracking, and payroll into a single system.
As operators face intensifying labor pressures, rising compliance complexity, and slimmer margins, the report suggests that payroll automation has become a competitive necessity rather than a convenience.
According to 7shifts, advancing to the higher stages of payroll maturity can yield not just administrative relief but also higher employee trust, better retention, and more strategic control over labor spending—a crucial edge in an industry where every hour and dollar count.
