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 percent of F&B professionals naming staffing (recruitment, retention and training) as their most significant challenge. Over 85 percent 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 percent) of businesses have reduced investment. The biggest reductions in investment have come in people and HR (53 percent). Other areas of reduced spending include overall hiring and staffing levels (38 percent), team training and development (19 percent), and employee benefits and welfare (15 percent).
Top 5 operational issues faced by U.S. F&B businesses:
- Hiring and staffing levels: 38 percent
- Managing operational costs & profitability: 28 percent
- Balancing work-life demands and stress: 26 percent
- Economic uncertainty: 25 percent
- Ensuring consistent food quality & service: 23 percent
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 percent of F&B businesses said they had to raise menu prices to offset wage increases.
Impact on Business Operations
85 percent 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 percent 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 and cooks
- Management positions
- Kitchen prep staff
- Waitstaff and servers
- Cashiers
Meanwhile, the easiest role to hire proved to be baristas and hosts/hostesses, as just 3 percent of F&B companies say that this position has been the most difficult to recruit.