1 in 5 Restaurants Have Turned Customers Away Amid Staffing Challenges

Restaurants’ labor challenges are so acute that many are turning away would-be diners, losing sales opportunities and potentially negatively impacting customer loyalty.

By the Numbers

According to data from the 2022 edition of PYMNTS’ Restaurant Readiness Index, which drew from a survey of more than 500 managers of quick-service restaurants (QSRs) and full-service restaurants (FSRs) across the country, 19% have had to turn away customers in the face of labor challenges.

Read more: More Than Half of Restaurants Depend on Digital Sales, Despite Uptick in on-Premises Orders

The Data in Action

In response to these challenges, and in an effort to preempt such issues in the future, many restaurants getting more analytical about their labor.

Michael Lotz, director of operations at Callie’s Hot Little Biscuit, a biscuit business with restaurants, a food truck and a retail business, recently spoke with PYMNTS about how the brand uses labor management software to boost efficiency across stores. Lotz noted that, by being able to get more granular data about labor and productivity, he can more effectively identify what is happening in the brand’s eateries, backing observations up with hard numbers.

“I can [now] lock down labor percentages,” Lotz said. “I can make my general managers responsible for their labor costs, and they can see it in real time. So, it’s really helped us from a bottom-line standpoint, saving money.”

Related: Restaurants Tap Labor Productivity Analytics to Identify Best Workers