The restaurant industry continues to face one of its most significant challenges: finding and keeping qualified staff. According to the 2025 Restaurant Workforce Report, 65% of operators describe the labor market as "tight" or "very tight," with recruiting (30%) and retention (27%) topping the list of concerns.
The numbers tell the story. In 2024, the industry added 210,300 jobs, with projections showing another 200,000 jobs in 2025, bringing the total workforce to 15.9 million. Yet despite this growth, a staggering 38% of food and beverage professionals cite staffing—including recruitment, retention, and training—as their most significant challenge.
What's driving this shortage? The lack of qualified and committed applicants remains a persistent obstacle. Many workers who left during the pandemic found opportunities in other industries with better hours, benefits, or working conditions. Those who remained often face burnout from understaffed shifts.
The ripple effects are substantial. With 85% of operators reporting that labor issues affect their operations today, many have been forced to make difficult choices. Some have reduced hours of operation, while others have simplified menus to require less specialized labor.
Perhaps most telling is how businesses have responded financially: 62% have raised menu prices to offset wage increases. This approach, while necessary for survival, creates its own challenges in an increasingly price-conscious consumer environment.
For restaurant owners navigating this landscape, the key is developing a multi-pronged strategy that addresses both immediate hiring needs and long-term retention. This includes competitive compensation, clear career pathways, flexible scheduling, and a positive workplace culture. The restaurants that thrive in 2025 will be those that treat their workforce as their greatest asset.