Technology
Restaurants that embrace a tech-first mindset aren’t just keeping up; they’re gaining the clarity and control needed to manage labor costs, empower their teams, and protect the guest experience, according to Eran Hollander, chief product officer at HungerRush
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June 4, 2025 by Eran Hollander — Chief Product Officer, HungerRush
Labor costs are placing a serious strain on restaurant operators. According to recent data, 88% of restaurant operators reported higher labor costs in 2024, and nearly 80% expect those costs to climb even further this year. The pressure on margins isn’t going away anytime soon. As operators navigate inflation, staffing shortages, and growing guest expectations, labor efficiency is becoming a make-or-break issue.
The challenge isn’t just cutting costs; it’s doing it without cutting corners on service. What operators may not realize is that the solution to these challenges is often the strategic use of technology. In fact, restaurant guests are aligned with this thinking – 80% say that with the right technology, restaurants can become more efficient and better manage labor shortages. A tech-first approach to labor management gives restaurants the visibility, automation, and flexibility they need to operate more efficiently while continuing to deliver memorable guest experiences that keep them coming back.
Below are three ways restaurant operators can leverage technology to regain control and balance over rising labor costs.
1. Use data to staff smarter, not Less
Effective labor management must start with an understanding of demand patterns. Integrated POS systems now provide real-time insights into traffic trends by hours, day of the week, and even weather conditions that attract (or deter) customers dining out. This data allows for more precise scheduling, ensuring restaurants are appropriately staffed during peak hours and not overstaffed when traffic slows.
While simply cutting hours across the board may seem like the obvious solution, it can actually hurt service quality. Instead, with better scheduling data, operators can use these insights to make specific and targeted adjustments and avoid under- and over-staffing. Over time, using this smarter approach results in better coverage, more efficient shifts, improved team morale, and a better guest experience.
One of the most impactful strategies that has emerged in recent years is cross-training employees to handle multiple roles. Technology can help identify skill gaps and surface performance data that points to which employees might be the most qualified to take on more responsibility.
Combined with labor management tools that provide metrics like labor-to-sales ratios, these insights allow managers to make informed scheduling decisions, balancing the appropriate staff per shift. The goal isn’t to push employees harder, but to deploy them where they’re most effective, making better use of each hour worked in an environment where each team member feels empowered in their role.
3. Automate to reduce administrative overhead
The back-of-the-house office tasks like payroll, compliance, and scheduling can quietly eat up hours of managerial time each week. Automating these functions with AI-enabled systems reduces administrative burden and improves accuracy and consistency.
By integrating payroll and scheduling tools with POS data, operators can eliminate the redundant, time-consuming data entry, catch errors before they become expensive, and free up managers to focus on areas that directly impact performance, such as customer service and team development.
The ripple effects of rising labor costs are here to stay, and unfortunately, there is no single solution to eliminate the impact. However, treating technology as a strategic cost-saving partner can help mitigate the pressure, equipping restaurants with the tools to make faster, smarter, and more informed decisions. Smart technology investments are no longer a luxury, they’re a necessity. Restaurants that embrace a tech-first mindset aren’t just keeping up; they’re gaining the clarity and control needed to manage labor costs, empower their teams, and protect the guest experience – all at the same time. The best competitive advantage is moving away from reactive responses, like cutting hours or staff across the board. The most effective strategy is one that equips your operation to do more with the team you have. That is where resilience and long-term gains begin.
About Eran Hollander
Eran Hollander, Chief Product Officer at HungerRush, has over 20 years of experience scaling fast-growth tech companies. As a former psychologist, Eran integrates behavioral insight with product strategy that understands the innate human needs of the user. His unique approach drives innovation that feels intuitive, efficient, and personal and results in best-in-class experiences for the user.
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HungerRush
HungerRush helps restaurants leverage advanced technology to understand their customers, run more efficient operations, drive revenue, and set a path toward sustainable growth.
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