Sponsored by Push Operations
In the restaurant industry, managing people is just as important as serving memorable dining experiences. To plan for long-term growth, keeping staff happy and engaged isn’t just a nice-to-have – it’s one of the main ingredients of operational efficiency.
However, post-pandemic labor shortages and minimum wage increases have been a growing concern for restaurant owners across the U.S. With an industry average turnover rate of 79.9%, it is becoming more expensive, and competitive, to recruit and retain staff.
According to Tina Lum, CEO and Co-Founder of Push Operations, an all-in-one restaurant management software, "The rising minimum wage, paired with a tight labor market, is putting immense pressure on restaurants to balance costs while still maintaining a high level of service.” This combination is a perfect storm for restaurants, forcing operators to make tough decisions and rethink their business model to stay competitive – from automation to increased wages.
Ignoring these problems can often lead to lower service quality, losing loyal customers, and, worst case, going out of business. “Considering that the average restaurant profit margin is 5%, even a small increase in operating expenses can make a big impact on your bottom line,” says Lum.
Labor costs are one of the biggest expenses in the restaurant industry, averaging 31.1% across all types of establishments. For owners already facing tight margins, even a slight increase in wages, benefits, or overtime can have a substantial impact on profitability. For example, for a restaurant operating with a 5% profit margin, a 5% decrease in labor costs would amount to a ~30% boost in net profit.
To remain competitive, restaurant owners are leveraging technology to optimize their operations and keep expenses in check. From automating payroll and scheduling to streamlining hiring and time tracking, technology offers solutions that can help reduce costs behind the scenes without compromising quality or service.
On average, restaurant payroll can take anywhere from two to eight hours to complete – and according to the IRS, 33% of employers make payroll errors each year, which results in costly penalties.
“One of the biggest challenges we’ve seen in the restaurant industry is overpaying on labor. Around 60% of restaurants fail within their first year, but technology is helping to change that,” explains Lum. “We created Push in 2012 after noticing that so many restaurants were facing the same operational challenges. We saw an opportunity to make payroll and HR an automated process, so restaurants could focus on growth and success.”
With Push, restaurant owners can run payroll in less than 10 minutes, thanks to seamless integration with its time-tracking software. The platform integrates with a host of leading hospitality technologies from POS systems to reservation software, to empower owners with real-time data. Additionally, managers can set alerts to notify them when employees approach overtime or miss scheduled breaks.
Since its founding, Push has helped thousands of restaurants across North America save an average of 12 hours per week and 3% on labor costs. Beyond time and cost savings, Push brings peace of mind, ensuring compliance with always-changing labor and payroll laws.
For restaurant operators like Tyler Rutherford, Director of Business Operations and Expansion at Gusto 54 Restaurant Group, a multi-concept restaurant group spanning locations in Los Angeles and Toronto, Push has helped create a consistent ecosystem for their 500+ employees. “Before Push, we had manual tracking sheets and clipboards everywhere. Push allows us to focus on our people [and] our training and retention with our team to create the best culture possible.”
As the restaurant industry continues to evolve, restaurants should look for every possible advantage to keep operations running smoothly and profitably.
“Our goal is to simplify people management for restaurant operators so they can focus on growth and great customer experiences,” says Lum.
Founded with the needs of restaurants in mind, Push has quickly become a trusted solution for payroll, scheduling, time tracking, and HR support across Canada, and is now expanding into the U.S. market. “We’re excited to bring Push to more restaurants across the United States, where owners are facing many of the same challenges,” says Lum.
As restaurants implement more efficient practices and adopt technology to control labor costs, they’ll be in a better position to not only survive but thrive in the years to come.
To learn more about Push Operations or to schedule a demo, visit pushoperations.com.
