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Yahoo
21-03-2025
- Business
- Yahoo
Restaurants focus on tech, retention as labor market cools
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Restaurants can speed up employee recruitment using technology like applicant tracking systems, automated interview scheduling and mobile application options, according to the National Restaurant Association's Workforce Technology Research Insights report., The organization, with the help of Paradox , interviewed leaders from 16 restaurant companies about their hiring processes and retention strategies to find what employers are prioritizing as the labor market cools. Thirty-seven percent of operators said they plan to adopt labor management and recruitment systems while 28% said they were interested in artificial intelligence-driven solutions, NRA said. Employers are exercising greater discretion in hiring, the NRA found, while looking for ways to save time for managers. Key measures of labor mobility have flattened over the last two years, with job openings still high and sectoral unemployment rising. 'The process of reviewing applications, conducting interviews, and onboarding new hires consumes valuable time that could otherwise be spent running the restaurant,' the NRA said. Large numbers of operators, the report claimed, are looking to invest in automated labor management, recruitment and scheduling systems. Southern Rock Restaurants, a major McAlister's Deli franchisee, said technology now made it possible to hire workers within 24 hours, while the operator's hiring time averaged 14 days when using a traditional, manual recruitment approach. The operator uses a tracking system that schedules interviews automatically, the report said. A vast majority of applicants (86%) apply to Southern Rock through mobile devices, with the bulk of applications submitted off-hours. This is in line with general workforce trends, as 54% of job seekers applying at night or on the weekend, according to the NRA report. Southern Rock 'provides QR codes and text-to-apply options in their stores, enabling customers to submit applications conveniently via cell phone. They also use QR codes for employee referral programs, offering bonuses for successful referrals,' the NRA said. The employee referral program blends the speed and convenience of technology with the reliability of employee recommendations. 'Two-thirds of operators [say] that their own employees are their best ambassadors for attracting new recruits,' the NRA found. Despite the availability of new technologies, some employers prefer to stick with older hiring practices. One family-owned dining group stuck with time-consuming manual processes because of the expressed preferences of its managers, but was still successful at filling its shifts, the NRA said. Finding candidates is only half the battle, operators told the NRA, with many focusing on trying to improve retention. One-third of candidates who accepted an offer dropped off before their start dates and over half didn't make it to their first 90 days, NRA said, citing data from Paradox. The Paradox data includes data from restaurant and non-restaurant firms. Operators interested in retention are investing in regular management communication and proactive support for new workers, the NRA said. One way to achieve that is a standardized training program. A multi-brand restaurant company uses a '20-day promise' as part of its onboarding program. The 20-day promise communicates expectations to workers, including shift-by-shift training benchmarks. Transparency like that helps ease workers into their new roles, the report said. Recommended Reading The restaurant labor market in 6 key statistics
Associated Press
18-03-2025
- Business
- Associated Press
From Want Ad to Workforce: How Tech is Serving Up Faster Hiring and Longer Retention in Restaurants
Automation Technology Reduces Hiring Times, Boosts Employee Engagement and Empowers Managers to Focus on Operations WASHINGTON, March 18, 2025 /PRNewswire/ -- Between 2025 and 2035, the restaurant and foodservice industry is projected to add 150,000 jobs per year, bringing total industry employment to 17.4 million people. Whether it's an independent operator hiring a few dozen people per year, or a large national brand hiring several thousand, employee recruitment and retention is a hands-on and time-consuming process. The new Workforce Technology Research Insights from the National Restaurant Association, highlights how technology is transforming restaurant recruitment, helping operators streamline hiring and retention efforts while freeing managers to focus on developing teams, optimizing operations, and delivering excellent customer experience. 'More than 80 percent of restaurant operators say that technology gives them a competitive advantage, and we're seeing that in hiring,' said Dr. Chad Moutray, vice president of Research and Knowledge for the National Restaurant Association. 'By integrating automation and AI-powered tools, restaurants are reducing hiring times, enhancing employee engagement, and fostering a workplace culture that supports long-term retention.' How Operators are Modernizing and Speeding Up the Hiring Process AI-driven technology solutions are revolutionizing the hiring process for many operators, making recruitment faster, smarter, and more cost-effective. Applicant tracking systems (ATS), chatbots, and automated scheduling tools help manage high application volumes, shorten hiring timelines, and connect employers with top talent more efficiently. Mobile-friendly applications, text-to-apply options, and QR code integrations also make the application process more accessible and convenient for job seekers. By simplifying the hiring process, technology is not only saving the operator time and money, it is also enhancing the candidate experience. In fact, speed in hiring is now a key competitive advantage. To streamline the process further, 37 percent of restaurant operators plan to adopt automated labor management and recruitment systems. The Importance of Experience in Hiring and Retention While hiring has become easier, retaining employees remains a priority, particularly in management and back-of-house roles. The 2025 State of the Restaurant Industry Report found that 54 percent of operators report difficulty filling these positions, highlighting why workforce planning remains essential for long-term stability. To improve retention, operators are focused on technology that delivers structured onboarding programs, leadership development, and real-time feedback tools. The first 30 to 90 days are critical for retention, and investing in mentorship, training, and digital engagement tools has helped operators strengthen employee commitment. The Value Proposition for Operators and Workers By streamlining hiring and improving onboarding, technology allows managers to focus on operational priorities. At the same time, digital tools are helping employees feel more engaged and supported, whether through clearer career pathways, mentorship programs, or real-time feedback mechanisms. 'Technology is playing a fundamental role in reshaping management practices, benefiting both operators and employees,' said Moutray. 'At the end of the day, it is important for restaurant managers to focus more time on running their restaurants, and increased automation can help free them up to do so.' Moutray added, 'That is leading to a growing number of operators investing in automation (37 percent) and AI-driven solutions (28 percent), recognizing that a well-supported workforce leads to greater efficiency, stronger teams, and long-term business success.' Click here to download the Workforce Technology Research Insights, supported by Paradox. 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 more than 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 and find WeRRestaurants on Twitter, Facebook and YouTube.
