Maximize ROI by Balancing Investments in Strategic Tech and Strong Leaders

Restaurant workforce return on investment is highest when operators pair efficient technologies with intentional development of managers and leaders, according to findings in the National Restaurant Association 2026 Research Insights: Hiring and Staffing paper, supported by Workday.

“Staffing is critical for restaurants in that finding the right people can make or break success,” said Dr. Chad Moutray, chief economist, National Restaurant Association. “One of the main focuses of this paper was that understaffing can restrict growth, sometimes costing thousands of dollars annually from being short even one employee.”

Nearly half of understaffed restaurants could not operate at full capacity, and 43 percent postponed expansion plans or modified their menus, according to the report. More than one-third (34 percent) reduced their hours, and one in five closed on days they would normally be open.

While understaffing is a perennial challenge in the restaurant industry, largely due to high turnover, Moutray believes it is easier to hire today than it was two or three years ago when the nation was in the midst of the “Great Resignation.” 

“Last year, just 22 percent of restaurant operators said that they were understaffed, the lowest since the pandemic, and consistent with a labor market’s shift into the “Great Stay,” where quit rates have largely fallen to below pre-pandemic levels, he said. “Still, it remains challenging for restaurants to find qualified chefs, managers, highly skilled professionals, and other roles.”

It is vital that operators invest in their people, with technology and automation helping to make workers more productive and effective in their jobs.

Persistent understaffing can hurt employee morale, reduce overall productivity and customer satisfaction, and in turn, hurt sales, he said. That’s why it’s so important for operators to find ways to speed up the hiring process by utilizing the latest technological tools, to reduce staffing challenges and to help identify candidates that are good fits and more likely to stick around as the first 30 to 90 days largely determine retention success.

Technology can help speed up the hiring process, helping to find the right people and cutting down the time they are operating understaffed, the data shows. For example, posting positions, evaluating applications, and interviewing can take up a lot of time for managers in any given week. Technology can speed up that process, with chatbots to help walk applicants through the process and schedule interviews. When someone is hired, these tools also help with onboarding and orientation. 

“More importantly, technology has helped reduce the time it takes to find the right talent from weeks to just a few days in many cases, and it has also freed up hours of time for managers, allowing them to spend more time doing what they were hired to do—run their restaurants and develop their workers,” said Moutray. “Restaurants are a low-margin business where even small efficiency gains can make big improvements to the bottom line.”

At the same time, restaurants are in the hospitality business, and customers expect great service, he noted. 

“It is vital that operators invest in their people, with technology and automation helping to make workers more productive and effective in their jobs. That helps the bottom line, but it also provides improved flexibility on the staffing front.”

Strong managers drive culture, performance, retention, and guest satisfaction. Effective managers build followings, maintain operational consistency, and help drive successful operational metrics, while poor managers quickly erode morale and overall performance, the data shows. When hiring, 87 percent of operators prioritize the ability to build team culture and morale, followed by enhancing the guest experience (84 percent) and financial acumen (75 percent.) It goes a long way to know that management is investing in them, and others see this as an example of how they too could advance with the right opportunities. That also helps morale and strengthens the overall culture for many restaurants, Moutray noted.

“Employees want to work in an environment where they feel heard and respected. Good managers are the key to developing a positive and productive culture, helping to set a high bar with operational excellence while also cultivating a great relationship with his or her employees.”