The Hiring and Staffing Dividend: How People Power Restaurant Profitability

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Apr 23, 2026, 06:00 ET

New National Restaurant Association insights show how strong onboarding, empowered managers, and smart technology fuel restaurant performance and growth

WASHINGTON, April 23, 2026 /PRNewswire/ -- The greatest investment the restaurant industry can make for its future longevity is in its workforce — a finding supported by the National Restaurant Association 2026 Research Insights: Hiring and Staffing paper, supported by Workday. With more than 10 percent of the U.S. workforce employed in restaurants, the report indicates that restaurants can achieve the highest workforce return on investment by maximizing their business's technological efficiency and developing their management teams to be tomorrow's industry leaders.

New research from the National Restaurant Association shows that technology enabled hiring, onboarding, and training deliver measurable ROI for restaurants by accelerating hiring, reducing turnover, unleashing breakthrough efficiencies while developing a future ready workforce led by strong, well equipped managers.

"Restaurants are a cornerstone of America's workforce, developing skills that carry into other industries and offering viable careers across more than seventy roles," said Michelle Korsmo, President & CEO of the National Restaurant Association. "This report highlights how investing in people—through strong hiring, manager development, and supportive technology—strengthens the guest experience and reinforces restaurants' role as a key driver of the U.S. economy."

The Real Cost of Being Understaffed

A hospitality-focused industry that serves millions each year, restaurants face an immediate and costly challenge from understaffing. Nearly 8 in 10 short-staffed operators said it significantly limits their ability to grow and succeed. One operator estimated that being short by just one team member could cost hundreds of dollars per shift. Another restaurant leader said that consistently running one employee short could reduce annual sales by thousands of dollars if persistent.

The operational toll is equally significant. According to the report, nearly half of understaffed restaurants could not operate at full capacity, and 43 percent postponed expansion plans or modified their menus. What's more, more than one-third (34%) reduced their hours, and 1 in 5 closed on days they would normally be open.

"Understaffing is not a marginal inconvenience—it is a material drag on growth, service quality, and sales," said Dr. Chad Moutray, Chief Economist at the National Restaurant Association. "Being short just one employee can cost a restaurant thousands of dollars in annual sales. The restaurants best positioned to grow are those that treat workforce decisions as a business imperative."

Hiring the Right People – and Keeping Them

New employees represent a short-term cost to the business before they begin generating net value for the business, according to the report. Hourly employees break even after an average of 31.8 days, while managers and salaried staff take an average of 72.2 days – often extending to 3 to 6 months for leadership roles.

With roles taking 16 days to fill for hourly positions and 46 days for managers, restaurants often operate short staffed in the interim, which strains teams, slows service, and costs revenue. Faster hiring reduces this operational strain and revenue losses. And the first 30 to 90 days after hiring are critical, as structured onboarding, mentoring, clear development paths, and consistent manager engagement largely determine whether a new hire stays.

Technology is Transforming Hiring and Workforce Management

Technology is helping restaurant operators address hiring challenges by dramatically compressing time-to-hire and streamlining post-hire processes; these investments will underpin future workforce success.

Restaurants using automated hiring tools report reducing hiring timelines from weeks to as few as 3 to 4 days. Beyond recruitment, nearly half of restaurants now use scheduling software, and 40 percent provide digital onboarding resources. However, only about 26 percent of operators currently use AI tools, creating significant opportunity for broader adoption across the industry. Notably, 94 percent of restaurant operators report that recent technology investments did not eliminate permanent jobs.

Great Managers are the Foundation of Restaurant Performance

While strategic use of technology is critical, restaurant operators note that great managers are the backbone of restaurant success – ensuring their teams are equipped to serve guests and communities. When hiring, 87 percent of operators prioritize the ability to build team culture and morale, followed by enhancing the guest experience (84%) and financial acumen (75%).

Strong leadership drives consistency, retention, and guest satisfaction, while weak management can quickly erode performance – making an intentional investment in leadership development and a strong management pipeline critical to long‑term staffing stability and business performance.

"With the labor market stabilizing, restaurant operators are focused on building strong, high‑performing teams," Korsmo said. "Leadership, engagement, and smart use of technology are delivering better outcomes for employees, guests, and the business."

The report builds on the Association's previous research on workforce technology and draws on restaurant operator surveys and interviews with restaurant leaders nationwide. It provides data-backed insights on staffing models, scheduling strategies, onboarding best practices, and the return on investment tied to developing frontline employees and managers. Download the Research Insights: Hiring and Staffing paper, supported by Workday, here.

About the National Restaurant Association

Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises more than 1 million restaurant and foodservice outlets and a workforce of 15.7 million employees. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. We sponsor the industry's largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart). For more information, visit Restaurant.org and find @WeRRestaurants on Twitter, Facebook and YouTube.