Crunchtime Blog

[New Research] Why Solving the Labor Puzzle is Critical for Restaurant Growth

Written by Dana Farese | Sep 17, 2025 2:45:00 PM

The restaurant industry is no stranger to labor challenges, but as brands gear up for expansion, those challenges are becoming even more complex and costly.

In our 2025 Restaurant Growth Insights Report, we found that only 35% of operators feel extremely confident in their labor and scheduling strategy, and even fewer (31%) are confident in their managers' ability to build schedules without over- or understaffing. That’s a concerning trend, especially when labor costs and team efficiency are among the most significant factors driving profitability.

 

The Labor Confidence Gap

Staffing isn’t just a day-to-day operational concern—it’s now a top barrier to growth. According to the findings:

  • 59% of operators say labor challenges directly impact their ability to expand.
  • Only 28% feel extremely confident in their ability to forecast sales for scheduling.
  • Just 33% are extremely confident they can stay within labor budgets.

This lack of confidence is compounded by unpredictable customer demand, employee preferences, compliance regulations, and slow responsiveness to productivity issues. These factors create a volatile labor environment that’s hard to manage and even harder to scale.

Top Challenges in Reducing Labor Costs

When asked about the biggest obstacles to lowering labor costs, operators pointed to:

  • Unpredictable demand fluctuations (33%)
  • Schedule preferences and time-off requests (28%)
  • Labor regulation compliance (28%)

Each of these factors erodes operational agility and makes growth riskier than it needs to be.

 

Growth Requires Strategic Labor Enablement

For brands looking to expand, the labor confidence gap is not just an operational hurdle–it is a strategic liability. Scaling successfully requires more than reactive scheduling. Operators need real-time visibility, accurate forecasting, and systems that support their teams rather than hinder them.

The good news? Technology is catching up. From smarter scheduling platforms to labor cost analytics, operators who embrace labor tech are better equipped to forecast accurately, stay on budget, and adapt quickly.

This chapter is just one part of a comprehensive look at how operators are approaching expansion, operations, and performance in 2025. To see the full picture and get actionable insights into labor strategy, growth planning, and tech adoption, download the full report today.