Expert Market recently released its 2025 Food & Beverage Report, sponsored by Toast, which surveyed 628 U.S. F&B professionals. The report found that labor is still the main issue for bars and restaurants, with 38% of F&B professionals naming staffing (recruitment, retention and training) as their most significant challenge. Over 85% say labor issues are affecting operations today.
Reasons for Labor Struggles
Rising costs are just one of the reasons for the continued labor challenges, as nearly three quarters (74%) of businesses have reduced investment. The biggest reductions in investment have come in people and HR (53%). Other areas of reduced spending include overall hiring and staffing levels (38%), team training and development (19%), and employee benefits and welfare (15%).
Top 5 Operational Issues Faced by U.S. F&B businesses:
- Hiring and staffing levels: 38%
- Managing operational costs & profitability: 28%
- Balancing work-life demands and stress: 26%
- Economic uncertainty: 25%
- Ensuring consistent food quality & service: 23%
In addition, many businesses have raised wages in an effort to combat the labor crisis, and this has led to higher menu prices and customer price sensitivity. 62% of F&B businesses said they had to raise menu prices to offset wage increases.
Impact on Business Operations
85% of F&B businesses even say that labor challenges are affecting their business operations. Difficulties in hiring and retaining staff can lead to a lack of workers to fill crucial roles, which may impact wider business operations.
The survey revealed the hardest-hit F&B roles are often in the kitchen, with 25% of establishments saying that chefs topping the list of the most difficult roles to fill.
Top 5 Most Challenging F&B Roles to Fill:
- Chefs & Cooks
- Management Positions
- Kitchen Prep Staff
- Waitstaff & Server
- Cashiers
Meanwhile, the easiest role to hire proved to be baristas and hosts/hostesses, as just 3% of F&B companies say that this position has been the most difficult to recruit.
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