The Shortage of Restaurant Workers in 2025

Every employee contributes to the success of a restaurant, from hosts, servers, bartenders, bussers, and other front-of-house staff to prep cooks, line cooks, sous chefs, and dish washers on the back end. The restaurant industry, however, has experienced an unprecedented labor shortage of workers over the past several years, affecting their ability to operate at capacity, maintain high service standards, and meet customer demand. This shortage has forced restaurants to adapt in various ways, including reducing business hours, simplifying menus, and increasing prices, all of which can have an impact on their profitability and customers’ satisfaction.

What Causes Restaurant Worker Shortages?

Restaurant worker shortages are caused by a variety of factors. Low pay and a lack of benefits, for example, can make jobs in the restaurant industry less desirable than jobs in other industries, such as retail. Restaurant jobs are often fast-paced, high-pressure, and physically demanding, leading to employee burnout and high turnover rates. Changing demographics can also contribute to the restaurant labor shortage: As baby boomers retire, younger people aren’t entering these roles at the same pace to replace these workers.

Several years ago, the COVID-19 pandemic played a significant role in creating a shortage of restaurant workers, with repercussions the industry is still feeling today. The pandemic led to restaurant closures and widespread industry layoffs, with workers reluctant to return when restaurants reopened.

These factors are taking a toll on restaurants’ abilities to hire the staff they need. Today, 70% of restaurant operators report having job openings that are tough to fill, while 45% say they don’t have enough employees to support existing customer demand, according to the National Restaurant Association (NRA).

Key Takeaways

• A labor shortage is affecting restaurants’ ability to operate at capacity, maintain high service levels, and meet customer demand.
• A variety of factors are contributing to the shortage, including relatively low worker pay, high stress, competition for workers, and the reluctance of workers laid off during the pandemic to return to the industry.
• A number of strategies can help restaurants address the labor shortage, such as offering competitive wages and benefits, offering flexible scheduling, and providing opportunities for career advancement.

Restaurant Labor Shortage Explained

When the COVID-19 pandemic hit and widespread lockdowns and restrictions went into effect, many restaurants were forced to close or operate at significantly reduced capacities, forcing many of them to lay off or furlough their staff.

As the pandemic progressed and restaurants gradually reopened under strict health and safety protocols, restaurant patrons didn’t return in pre-pandemic numbers. Many still were hesitant to eat out and preferred delivery or takeout options. This change in consumer preferences further strained restaurant revenues and limited the establishments’ ability to fully rehire staff.

Former restaurant employees, meanwhile, were hesitant to return to their jobs. Enhanced unemployment benefits gave restaurant workers more time to reflect on their careers, and many sought alternative employment opportunities that were less stressful and higher paying.

Though the restaurant industry is now back in growth mode—the workforce was projected to increase by 200,000 jobs in 2024, according to a National Restaurant Association (NRA) survey of restaurant operators—nearly half of the respondents said they still needed more employees if they were to meet customer demand. And with 43% of operators still carrying debt amassed during the pandemic, the need to increase revenue remains strong.

How Do Restaurants Determine Staffing Needs?

Determining staffing levels for optimal restaurant operations depends on a number of variables. To start, restaurants should account for all necessary roles, from front of house (servers, food runners, bussers, bartenders, hosts, managers) to back of house (kitchen managers, head chefs, sous chefs, line cooks, dish washers).

Restaurants must also examine their daily needs, from pre-opening hours through post-closing, as well as the total number of shifts, types of roles, and number of employees required for proper coverage—all while accounting for fluctuations in the number of customers at any given time. An upscale restaurant, for example, is likely to have greater staffing needs across the board on weekend nights, whereas a quick-service restaurant, where customers place their orders and pick up their meals at a counter, would want to beef up its number of order takers, line cooks, and bussers only during peak hours.

Restaurants can also use data—from point-of-sale and reservation systems, for example—to identify peak hours or ordering trends during busy periods. This insight can help to identify how best to staff the restaurant during these times.

Causes of the Restaurant Labor Shortage

The causes of the restaurant labor shortage are varied and complex, including the following.

• Post-pandemic economic recovery: While restaurant layoffs were rampant during the pandemic and corresponding recession, the ensuing recovery created a labor shortage. For starters, workers are prioritizing work-life balance and demanding higher wages to offset their increased cost of living. And the demand for workers has increased as the restaurant business has picked up.
• Competition with other industries: Other industries, such as retail and delivery services, tend to compete for the same pool of workers that restaurants rely on. These other industries may offer more competitive pay and benefits than restaurants, a better work-life balance through more predictable schedules, and work conditions that are less physically demanding and stressful.
• Changes in workforce demographics: Older workers are retiring in droves, while there aren’t enough younger workers—who put more of a priority on flexible schedules, remote work options, and work-life balance—to replace them.
• Demanding nature of the job: Restaurant workers often work long shifts that include nights, weekends, and holidays. These jobs are also physically demanding, requiring workers to stand for long periods of time, carry heavy trays, and perform repetitive tasks.
• Quality-of-life concerns: Long shifts can interfere with workers’ personal and family time. The hours can be taxing, and a lack of predictable, regular hours makes restaurant jobs less attractive to workers seeking work-life balance. Additionally, many restaurant jobs offer relatively low wages, particularly for servers and bussers, who must rely on tips to supplement their income.
• Health and safety concerns: Health concerns related to the pandemic, viruses, and other medical maladies continue to make some workers, particularly those with underlying health conditions or vulnerable family members, hesitant to return to restaurants jobs. Strict health protocols put in place as a result of the pandemic have further strained staffing resources.
• Shifts in employee expectations: Workers today put a greater value on fair compensation, career advancement opportunities, and a supportive work environment—not areas where restaurants tend to excel.
• Immigration restrictions: Immigrants account for more than 20% of the US restaurant workforce, but the industry is pushing for policy reforms that would facilitate “legal pathways for employment,” according to the Independent Restaurant Coalition. With fewer options for legal immigration and increased bureaucratic hurdles, restaurants have continued to struggle to fill positions.
• Rise of the gig economy: The rise of the gig economy, characterized by the prevalence of short-term work contracts and freelance work, gives workers who might have otherwise taken traditional restaurant jobs the opportunity to earn higher wages with more job flexibility elsewhere. These jobs include delivery workers and ride-share drivers.
• Changes in consumer behavior: Over the past several years, the ways consumers participate in the restaurant industry have changed. For example, the pandemic shifted many customers toward online ordering and food delivery services, which they continue to turn to even though restaurants have reopened. This has increased the need for delivery drivers and kitchen staff, thereby amplifying labor shortages.

The Impact of Labor Shortages on the Industry

Labor shortages are having a profound impact on the restaurant industry. When restaurants are short-staffed in the kitchen, for example, ticket times can take longer, resulting in slower table turns and longer waits for food. This also means that restaurants are bringing in less revenue, which highlights the importance of tracking restaurant benchmarks to identify areas for improvement.

When restaurants are short-staffed for front-of-house roles, servers often have to take on more tables than they’d typically handle. Not only does this result in higher stress and burnout for staff, but customer service can suffer, too.

The financial effects of the restaurant labor shortage can’t be understated: Businesses may face higher costs associated with overtime pay if they can’t fill the necessary roles, as well as financial burdens associated with hiring incentives and training to attract and retain staff. Reduced capacity and service quality can result in lost revenue if customers seek alternate restaurants, and profit margins suffer as restaurants try to balance the need for additional staffing with managing rising costs.

15 Strategies to Address Restaurant Labor Shortages

While the restaurant industry continues to face serious challenges amid the labor shortage, there’s a multitude of strategies businesses can use to endure the drought and emerge stronger.

1. Competitive wages and benefits: Offering higher wages and better benefits can make restaurant positions more attractive to potential employees and helps to differentiate a restaurant from others as a more desirable place to work. Competitive wages and benefits can also lead to higher job satisfaction, which cuts down on employee turnover and could attract more skilled and experienced workers who might otherwise seek employment in other industries.
2. Employee incentives and recognition: Incentives and recognition, such as bonuses, performance-based rewards and programs that recognize employees’ accomplishments, can motivate them to work harder and be more engaged. These incentives and recognition programs can also attract talent who want to work where they feel respected and are acknowledged for their efforts.
3. A positive work culture: Clearly, employees who feel valued are more likely to stay at a restaurant longer. A positive work culture encourages teamwork and collaboration, which improves efficiency and service quality. Restaurants can create a positive work culture by establishing open lines of communication where employees feel comfortable sharing ideas, concerns, and feedback; by recognizing and celebrating employees’ accomplishments; and by offering training programs that help employees develop their skills.
4. Flexible scheduling: Offering flexible work hours helps restaurants attract a broader range of employees, among them students, parents, and part-time workers who might not be able to commit to a more conventional schedule. This flexible staff scheduling approach also allows restaurants to manage peak hours and varying customer demand better, ensuring that staffing will be adequate at all times.
5. Work-life balance initiatives: Built-in mental health days and paid time off, as well as reasonable working hours, help to promote a healthy balance between work and personal life, which reduces employee burnout and turnover. Employees who feel that their well-being is prioritized are more likely to stay loyal to and advocate for their employers, as well as be more engaged and more likely trust leadership, according to a 2023 Gallup survey. Work-life balance initiatives also improve staff retention, increase productivity and profitability, and make working at the restaurant more appealing.
6. Comprehensive training programs: Training programs equip employees with the skills and knowledge they need to perform their roles effectively. They also reduce the learning curve for new hires and help staff feel more confident and competent, leading to higher job satisfaction and lower turnover. Comprehensive training opportunities in addition to investing in an human capital management (HCM) system also demonstrate that the restaurant is committed to employees’ professional development.
7. Career advancement opportunities: Leadership training and mentorship programs provide restaurant employees with a clear pathway for growth, demonstrating that there are opportunities for mobility. Such programs also help restaurants attract individuals looking for long-term careers rather than short-term jobs.
8. Streamlined operations: Optimizing workflows, adopting new technology solutions like artificial intelligence (AI), and simplifying menu items to speed up prep time are just a few strategies restaurants can employ to improve efficiency and reduce staff workload, helping alleviate labor shortages. Streamlined operations can help restaurants manage with fewer staff; can reduce employee stress and burnout, contributing to higher job satisfaction; and can trim operational costs.
9. Enhanced customer service: Training employees to provide excellent customer service can generate higher tips, which can make restaurant jobs more financially attractive. Satisfied customers are also more likely to return, ensuring steady business and the need for a more stable workforce.
10. Workplace marketing: Effectively marketing the workplace helps create a strong employer brand and attract job seekers. These efforts might include social media campaigns, job-board postings, and a website career page to highlight the benefits, pay, culture, and opportunities available at the restaurant.
11. Community engagement: Restaurants that participate in community events, support local causes, and engage with their neighborhoods build a stronger local presence and reputation. This helps attract employees who value social responsibility and creates a sense of pride and loyalty among staff, who are left feeling that they’re part of an organization that cares about its community.
12. Partnerships with staffing agencies: Forming partnerships with staffing agencies helps restaurants fill vacancies and address labor shortages. These agencies have access to a large pool of job seekers and can provide temporary or permanent staff as necessary. In addition, staffing agencies will handle the initial screening of candidates, ensuring that these workers will be qualified and ready to start work as soon as possible.
13. Leveraging the gig economy: Tapping into the gig economy can help restaurants fill their short-term needs without making a long-term commitment. For example, restaurants can scale up their workforce to cover peak hours, special events, or an unexpected staff shortage—since these contract workers can fill shifts on short notice—and scale down again during quieter periods.
14. Industry association engagement: Participating in restaurant industry associations, such as the National Restaurant Association, American Culinary Federation, and the Independent Restaurant Coalition, can provide access to networking opportunities and hiring and retention best practices. These associations often offer training programs, certifications, and job boards that also help restaurants find qualified staff.
15. Government support programs: A variety of government programs, such as the Work Opportunity Tax Credit and apprenticeship programs sponsored by the US Department of Labor and Small Business Administration, are available to provide restaurants with financial assistance and resources to weather labor shortages. These programs may include grants for training and development, tax incentives for hiring, and subsidies for wages.

Reduce Restaurant Labor Issues with NetSuite

NetSuite’s SuitePeople human resource management system offers workforce planning and scheduling capabilities to help restaurants optimize staffing levels based on demand forecasts, historical data, and business trends. It also provides tools for streamlining job postings, applications, and candidate evaluations, and for designing and tracking training programs to upskill existing employees. By leveraging these capabilities, restaurants can hone their recruitment processes, enhance employee engagement and development, and ultimately improve operational efficiency amid challenging labor conditions.

Labor shortages have had a profound impact on the restaurant industry, affecting everything from the service these businesses provide to the employee experience and the restaurant’s bottom line. While a variety of factors can cause these shortages—such as changes in workforce demographics, the rise of the gig economy, and shifts in customer behavior—restaurants can take steps to attract employees, improve the satisfaction of existing workers, and plan for a five-star future.

Restaurant Labor Shortage FAQs

Why is there a labor shortage in the restaurant industry?

The restaurant labor shortage has been caused by a number of factors, including the steady economic recovery, competition with other industries, changes in workforce demographics, quality-of-life concerns, and the rise of gig economy work alternatives.

Why is it so hard to find restaurant workers?

Finding restaurant workers can be challenging due to demographic shifts, high turnover, a competitive job market, and changing workforce expectations.

What is causing staffing shortages?

A variety of factors are causing staffing shortages in restaurants, including health and safety concerns, the demanding nature of the job, relatively low wages and benefits, and competition with other industries.