At a time when restaurant operators continue to balance labor costs with guest experience and growth goals, new research from the National Restaurant Association reinforces a familiar truth: Staffing decisions are among the most important investments a restaurant can make.
According to the association’s newly released 2026 Research Insight: Hiring and Staffing, restaurants that prioritize smart hiring, manager development and supportive technology are better positioned to protect sales, improve service, and expand operations—even as labor market pressures persist.
The report, supported by Workday, emphasizes that labor should not be viewed simply as a cost center, but as a driver of profitability and long-term resilience.
“This research highlights how investing in people—through hiring, development, and technology—strengthens not only individual restaurants, but the broader economy,” Michelle Korsmo, president and CEO of the National Restaurant Association, said in a statement.
The High Cost of Being Short-Staffed
While the broader labor market has stabilized since the height of the “Great Resignation,” staffing challenges remain widespread across the restaurant industry. The research shows that nearly 80 percent of short-staffed operators say labor shortages significantly limit their ability to grow and succeed.
Even modest gaps in staffing can have an outsized impact on the bottom line. Some operators surveyed estimated that being short just one team member could cost hundreds of dollars per shift, while persistent understaffing could translate into thousands of dollars in lost annual sales.
Operational impacts extend beyond revenue. Nearly half of understaffed restaurants report being unable to operate at full capacity, while 43 percent delayed expansion plans or adjusted menus. More than one-third reduced operating hours, and one in five closed on days they would typically be open.
“Understaffing is not a marginal inconvenience—it’s a material drag on growth, service quality, and sales,” said Chad Moutray, chief economist at the National Restaurant Association.
Hiring Is an Investment—Retention Makes It Pay Off
The research also quantifies how long it takes for new hires to become financially productive. On average, hourly employees break even after about one month, while managers and salaried employees take more than two months, often stretching to three to six months for leadership roles.
That means turnover before those timelines are met can erode margins quickly. The report underscores that hiring only generates a return when employees stay long enough to become “net positive” contributors.
Manager turnover, in particular, remains costly. Strong managers not only improve retention among frontline employees but also elevate training, scheduling, and day-to-day execution, creating more consistent guest experiences.
Technology Amplifies People Power
Technology plays a critical supporting role in improving staffing ROI, according to the report. Rather than replacing workers, effective tools help managers spend less time on administrative tasks and more time leading teams.
Post-hire technologies—such as onboarding platforms, scheduling tools, and training systems—were found to deliver the greatest return by reducing friction, improving engagement, and stabilizing operations.
The report concludes that restaurants with empowered managers and efficient systems are better equipped to build flexible staffing models that adapt to demand without sacrificing service or profitability.
With more than 10 percent of the U.S. workforce employed in restaurants, the association notes that the industry plays a critical role in developing transferable skills and career pathways across more than 70 roles.