7 Strategies To Overcome Restaurant Staffing Shortage

November 3, 2025

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Are you struggling to keep your restaurant running smoothly despite a steady flow of customers? You’re not alone. Across Canada, the foodservice sector has nearly 100,000 job vacancies, leaving many restaurants operating at just 80% of normal capacity.

And this restaurant staffing shortage is more than just a staffing problem. It affects service quality, kitchen efficiency, and customer satisfaction. Maybe your staff is rushing more than usual, or maybe you’re spending extra hours just keeping things on track. When your team is stretched thin, mistakes happen and stress builds up. 

So, how do you tackle this? This blog will guide you through practical strategies, smart tech solutions, and tips to keep your restaurant running smoothly and your staff happier. Read along to discover how.

Quick Overview:

  • Identify causes of restaurant staffing shortage and address them with proactive recruitment strategies.
  • Take advantage of technology like POS, online ordering, and scheduling software to reduce staff workload.
  • Optimize staffing and labor costs with smart scheduling, cross-training, and efficient operations.
  • Foster a positive work culture with recognition, growth opportunities, and flexible work arrangements.
  • Retain staff and improve customer experience through loyalty programs, targeted promotions, and streamlined operations.

Why Are Restaurants Struggling With Staffing Shortages?

If you’re running a restaurant today, you’ve likely faced the same frustrating reality- there simply aren’t enough hands on deck. While the industry is finally bouncing back to pre-pandemic sales levels, the restaurant staffing shortage continues to be one of the biggest operational hurdles.

This shortage stems from deeper issues within the industry. Many restaurant workers face low wages, limited growth opportunities, and demanding work conditions. These challenges often drive them toward more stable, better-paying jobs in other fields.

But the impact of this shortage goes beyond just hiring challenges. Let’s explore how it can affect your everyday operations and customer experience.

How Do Labor Shortages Affect Restaurant Operations?

Staff shortages don’t just slow down your kitchen; they ripple across every part of your business. Here’s how they show up in daily operations:

  • Reduced Operating Hours: You might need to shorten open hours or close certain days, cutting potential revenue. This can frustrate regular customers and reduce overall sales during peak times.
  • Limited Menu Options: Trimming your menu or rotating fewer specials eases kitchen pressure but limits customer choices. It also reduces opportunities for upselling and showcasing signature dishes.
  • Overworked Staff: Your remaining employees carry an extra workload, which can lead to exhaustion and mistakes. High stress levels may result in more turnover, disrupting operations further.
  • Lower Service Quality: Longer wait times and slower table turnovers can frustrate customers. Even if your food quality remains high, poor service can affect repeat business.
  • Higher Costs: Replacing staff, training new hires and managing burnout can increase operational expenses. This strains your profit margins despite having fewer employees.
  • Missed Growth Opportunities: Focusing on survival leaves little room for expanding services or launching new initiatives. You may miss chances for catering, delivery partnerships, or seasonal promotions.

Restaurant staffing shortage creates a domino effect- fewer workers lead to more stress, which leads to more resignations. So how do you break that cycle and still run efficiently? The answer may lie in smart technology that helps you do more with less.

Also Read: Comprehensive Guide to Train Your Restaurant Staff

How Can Technology Help Solve the Restaurant Staffing Shortage?

The right tech tools can reduce pressure on your staff, improve efficiency, and even make your restaurant more appealing to potential hires. See how below:

1. Streamlined Online Ordering

Online ordering systems reduce the need for front-of-house staff by letting customers place orders directly. Orders can flow straight to the kitchen, minimizing errors and wait times.

  • Free up your staff to focus on service rather than taking orders.
  • Increase order volume without increasing workload.

Example: iOrders’ online ordering sends every order directly to your POS, eliminating manual entry and keeping your kitchen running smoothly.

2. Automated Self-Service Kiosks

Kiosks can handle ordering, payments, and even loyalty programs. This reduces pressure on cashiers and allows staff to focus on in-person service.

  • Customers enjoy a quicker, contactless experience.
  • Staff can dedicate time to customer interaction rather than routine tasks.
  • Restaurants using self-service kiosks see smoother peak-hour operations and higher customer satisfaction.

3. Smart Scheduling & Staff Management

Scheduling software helps match staffing levels to demand, preventing overstaffing or gaps. It also makes shift updates easy to communicate to employees.

  • Automates shift planning based on historical sales and peak hours.
  • Reduces unnecessary labor costs.
  • Keeps employees informed via app notifications or email.

4. Integrated POS & Inventory Systems

Modern POS systems provide real-time sales and inventory data. This allows better decision-making on staffing, menu adjustments, and operational planning.

  • Avoid overstaffing when demand is low.
  • Track high-demand items and adjust kitchen workflow.

Example: iOrders centralizes online and in-person orders in one dashboard, reducing errors and extra manual work for your team.

5. Table & Reservation Management Tools

Reservation and table management software reduces the time staff spend answering calls or juggling walk-ins. It helps optimize seating, reduce wait times, and improve customer flow.

  • Enables efficient table turnover with fewer employees.
  • Improves guest satisfaction and reduces front-of-house stress.
  • Systems like these let restaurants better plan staffing during peak hours.

6. Contactless Payments & Loyalty Automation

Allowing customers to pay via mobile or integrated systems reduces cashier workload. Automated loyalty programs keep engagement high without extra staff effort.

  • Speeds up checkout while maintaining a branded experience.
  • Helps retain customers through automated rewards and offers.

Example: iOrders’ loyalty and rewards system automatically tracks points and promotions, keeping customers engaged without adding work for staff.
After setting up the right digital tools, the next step is to implement smart staffing strategies that maximize efficiency.

Also Read: Top Restaurant Employee Management Software

Smart Tips to Optimize Staffing and Cut Labor Costs

Running a restaurant efficiently means finding the right balance between staffing levels and labor expenses. Managing labor efficiently can help you overcome the challenges of a restaurant staffing shortage without compromising service quality. Here are key ways to do it:

Optimize Employee Scheduling

  • Align staff schedules with peak and slow periods to avoid overstaffing while maintaining smooth service during busy hours.
  • Offer flexible shift options to accommodate employees’ needs, reducing absenteeism and improving morale.

Cross-Train Your Team

  • Teach employees multiple roles so they can fill gaps during unexpected absences, reducing the need for temporary hires.
  • Encourage skill development to increase versatility and keep employees engaged, boosting overall retention.

Streamline Recruiting

  • Hire selectively for fit and reliability rather than urgency, improving team cohesion and long-term retention.
  • Leverage employee referrals, local schools, and industry networks to attract motivated, skilled candidates efficiently.

Monitor Performance and Labor Costs

  • Regularly review labor expenses and shift productivity to spot inefficiencies and adjust staffing strategies accordingly.
  • Provide incentives for high performance and teamwork to motivate staff while keeping payroll costs sustainable.

Offer Competitive Compensation

  • Review wages and benefits regularly to remain attractive in a tight labor market, preventing turnover.
  • Introduce small perks like meals, bonuses, or recognition programs to make employees feel valued and motivated.

Optimizing staffing and labor costs ensures your restaurant operates efficiently, but keeping your team happy is just as important. 

How To Create A Positive Work Culture That Attracts And Retains Staff

Fostering a supportive and engaging workplace is key to retaining employees during a restaurant staffing shortage. Let’s look at the key approaches:

Foster Respect and Recognition

Recognize employees’ efforts consistently. Celebrate milestones, achievements, and strong performance to make staff feel valued. Appreciation drives loyalty and encourages your team to give their best every shift.

Encourage Professional Growth

Offer training programs, mentorship, and opportunities for promotion. Employees who see a clear career path are more likely to stay committed and develop skills that enhance your restaurant’s overall performance.

Promote Teamwork and Collaboration

Encourage cooperation among employees through team-building activities and collaborative tasks. A united team reduces conflicts, improves communication, and makes your restaurant a more enjoyable workplace.

Create a Positive, Safe Environment

Ensure safety, fairness, and inclusivity. A respectful, healthy environment reduces turnover and creates a workplace where employees feel secure, supported, and motivated to excel.

Also Read: Hire and Retain Restaurant Employees: Top 12 Strategies

Boost Efficiency and Retain Staff With iOrders

Running a restaurant is never easy, especially with a restaurant staffing shortage. iOrders acts as your digital backbone, taking orders, routing them directly to your POS, and notifying your team instantly. Whether you use your own in-house delivery staff or third-party delivery partners like DoorDash Drive or Uber Direct, iOrders makes the process seamless. 

How iOrders simplifies your operations and boosts profits:

  • Centralized Order & Delivery Management: All pickup, dine-in, and delivery orders appear in one dashboard, reducing confusion and errors during peak hours.
  • POS Integration: Orders flow directly into your POS system without manual entry, speeding up kitchen operations and minimizing mistakes.
  • Commission-Free Online Ordering: Keep full control of menu pricing and discounts while saving on platform fees.
  • Delivery-as-a-Service: Enable fast, reliable delivery with your staff or via third-party partners, with no commissions, by just paying a flat fee per order.
  • Loyalty & Rewards Programs: Automate customer retention using collected emails, phone numbers, and targeted promotions.
  • White-Label Mobile App: Let customers order directly through your branded app for a seamless experience, reducing staff workload.
  • Boosted Profit Margins: Flat delivery fees and direct control of menu pricing allow higher revenue per order.

With iOrders, your restaurant’s tech stack works for you. Staff spend less time juggling orders and more time delivering excellent service, leading to happier employees and more loyal customers.

Final Thoughts

The restaurant staffing shortage continues to challenge owners, from overworked teams to longer wait times and missed growth opportunities. Understanding the root causes and how they impact daily operations is the first step toward tackling this problem effectively.

Smart strategies, from optimizing scheduling and cross-training staff to creating a positive work culture, can help reduce turnover and improve efficiency. Pairing these approaches with technology solutions streamlines online ordering, delivery, and customer engagement, giving your team the tools to work smarter, not harder.

iOrders acts as a central hub for your restaurant, handling orders, delivery, and customer engagement seamlessly. With features like centralized dashboards, loyalty programs, POS integration, and third-party delivery options, your staff can focus on service while boosting profits. Ready to take the stress out of staffing shortages? Schedule a demo to see how iOrders can transform your operations.

FAQ’s

Is there a labor shortage in the food industry?
Yes, the food industry is facing a labor shortage, making it difficult for restaurants to hire and retain skilled staff. This shortage stems from factors like career changes and long-standing concerns over pay and work conditions.

What is the 30/30/30 rule for restaurants?
The 30/30/30 rule suggests allocating roughly 30% of resources to labor, 30% to food costs, and 30% to operational expenses. This helps restaurants maintain balanced operations while keeping a small margin for profit.

What happens if a restaurant is understaffed?
An understaffed restaurant can experience longer wait times and stressed employees, which negatively impacts service quality. Over time, this can reduce customer satisfaction and hurt overall revenue.

How to handle short staffing in a restaurant?
Short staffing can be managed by cross-training employees, optimizing schedules, and leveraging technology like online ordering and POS systems. Creating a supportive work environment also helps retain existing staff and reduce turnover.

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